Marketing News

Online Beauty and Personal Care Products Market to Grow by $50.96 Billion by 2028: Technavio

The global online beauty and personal care products market size is estimated to grow by $50.96 billion from 2024-2028, per market research firm Technavio.

The market is estimated to grow at a CAGR of 14.76% during the forecast period.

Key market players include Amorepacific Corp.; Chanel Ltd.; Church and Dwight Co. Inc.; Clarins France; Coty Inc.; Henkel AG and Co.; KGaA; Johnson and Johnson Services Inc.; Kao Corp.; Koninklijke Philips N.V.; L’Oréal SA; MacAndrews and Forbes Inc.; Mary Kay Inc.; maxingvest AG; Natura and Co Holding SA; Oriflame Cosmetics SA; Reckitt Benckiser Group Plc; Shiseido Co. Ltd.; The Estée Lauder Companies Inc.; The Procter and Gamble Co.; and Unilever PLC.

A rise in penetration of internet and smart gadgets is driving market growth, with a trend towards hassle-free and one- or two-day delivery. However, logistics for e-retailers pose a challenge, analysts say.

New Delivery Models Fuel Growth

Online retailers are experimenting with new delivery models to cater to customers’ evolving expectations in the online beauty and personal care products market. With increasing demand for convenience, e-retailers are focusing on hassle-free, one-day delivery services, which come with an additional charge. In developed markets like Western Europe and the US, same-day delivery services are popular, indicating a willingness to pay for swift services that prioritize emergency needs and convenience.

These services save time for both customers and e-commerce players, analysts say. For instance, Amazon Prime offers one- or two-day delivery services for a fee, and in some areas in the US, it provides free two-hour delivery for select products. Customers seeking fast and convenient services often opt for such memberships. This trend may expand the customer base and contribute to the growth of the online beauty and personal care products market during the forecast period.

Urbanization and Lifestyle Changes

The online beauty and personal care products market is thriving due to increasing consumer lifestyle changes and urbanization. Product feedback and social proof play a significant role in purchasing decisions, analysts say. Mobile commerce is on the rise, with product delivery and third-party delivery services ensuring convenience.

Organic and herbal products, eco-friendly packaging and male grooming are popular trends. Consumers prioritize health and hygiene, self-esteem and physical appearance. Moisturizers, soaps, cleansers, toothpaste, hair dyes, perfumes, facial tissues, lipsticks and more are in demand. Internet penetration and online sales channels offer discounts and offers, boosting brand awareness and customer loyalty. Premium product variants, exotic brands and signature collections cater to cross-category shopping.

Social media influence and promotional campaigns impact purchasing decisions. Product packaging, chemical-free products and personalized offerings based on skin and hair type are essential, Technavio says. E-retailers provide same-day delivery, online payments and easy navigation for a seamless shopping experience.

Messy Routing Systems Pose Market Challenges

E-commerce retailers in the online beauty and personal care products market face “significant logistical challenges” that impact their profitability. These issues include a lack of accurate postal addresses and unorganized routing systems, leading to delayed deliveries. International retailers bear additional costs due to these complications.

To mitigate these challenges, Technavio says retailers can collaborate with established third-party logistics providers. This partnership prevents retailers from incurring extra labor costs and ensures efficient distribution of orders. In case of complications, logistics providers are responsible for resolving them, safeguarding the retailer’s brand image and customer base.

Despite these challenges, the global online beauty and personal care products market is expected to grow, but the logistical complexities may hamper its expansion during the forecast period.

Catering to Gen Z’s Demand for Clean-Labeled Products

The online beauty and personal care products market is experiencing significant growth driven by various trends and challenges. One key trend is the demand for clean-labeled products, as consumers prioritize health and natural ingredients. Gen Z is a major consumer base, seeking innovative solutions like biotechnology and nanotechnology in their DIY beauty treatments.

Organic cosmetics and cruelty-free products are also popular, along with ethically derived goods. The skincare and haircare markets dominate sales, with working women and the young population being key customers. Specialty stores and e-commerce platforms, including free delivery and competitive prices, cater to this demand.

Innovative packaging and personalized recommendations further enhance the customer experience. Digital channels, including e-commerce, have become essential for reaching consumers. Moreover, brands are leveraging health and beauty influencer marketing and customer reviews to build trust and loyalty.

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