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    Breaking News

    E-Commerce Fuels Growth of U.S. Beauty & Personal Care Products

    Marketplace options provide optimal selection, pricing and service, says P&S Intelligence.

    E-Commerce Fuels Growth of U.S. Beauty & Personal Care Products
    The growing e-commerce industry bodes well for the U.S. beauty and personal care products market.
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    Beauty Packaging Staff11.18.20
    Beauty consumers choosing marketplace ordering sites will have a direct influence on e-commerce sales according to a new report by P&S Intelligence. In 2019, there were 312.3 million internet users in the U.S., and their number is consistently increasing, according to the research firm, which says, “This is one of the primary reasons the U.S. beauty and personal care products market is set to grow from $81.1 billion in 2019 to $128.7 billion in 2030, at a steady 4.8% CAGR during 2020–2030. For instance, the U.S. Department of Commerce estimates e-commerce to have accounted for 16.0% of all retail sales in the nation in 2019. ”
     
    The growing e-commerce industry bodes well for the U.S. beauty and personal care products market, as fast-moving consumer goods (FMCGs), including beauty products, are some of the most-purchased commodities via online platforms. As a wide variety of beauty products, including clean beauty products and hyper-personalized skin care products, are available online at substantial discounts, people prefer to shop for such branded products on e-commerce websites. Thus, the easy availability of beauty products at reasonable rates has helped increase their penetration in the country, according to P&S Intelligence.
     
    Impact of Covid-19
     
    According to P&S Intelligence, the Covid-19 pandemic had a mixed impact on the U.S. beauty products and personal care market. On one hand, the sales of actual beauty products have been reduced due to slowed manufacturing and supply, lower wages, and widespread unemployment. The report notes that even L'Oréal recorded 4.8% lower sales in North America during the pandemic. However, the demand for toiletries, including soaps and sanitizers, has soared in the U.S., as regular washing of hands is considered one of the best ways to protect against the virus.
     
    Marketplace Platforms
     
    The marketplace platform category held the largest share in the U.S. beauty and personal care products market in the past, based on distribution channel. The P&S report says, “At such one-stop platforms, all types of beauty products are available at affordable rates, which is why these places are vastly popular among the American population. Additionally, the efficient distribution network of such marketplace platforms results in fast and smooth product deliveries, which attracts even more people to purchase from them.”
     
    In the coming years, the U.S. beauty and personal care products market is predicted to witness the most-rapid advance in the click & collect category, under segmentation by mode of purchase, according to P&S. In this mode, people pay for the products online and then collect them from a designated store— saving time otherwise spent in long lines at brick-and-mortar locations.
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