Where Consumers Shop for Beauty and Personal Care

Delivery

This report comes in PPT.

Key Findings

Global beauty and personal care sales declined in real value terms in 2022

Beauty and personal care sales declined in 2022, with consumer confidence, sustained momentum in digital beauty engagement and the increase of travel and social occasions insufficient to compensate for high inflation, rising unit prices and strained supply chains.

Consumers’ channel loyalty disrupted by downtrading

Price-sensitive consumers started downtrading between categories, discovering private label and alternative retail channels. The one-stop shop is in the past, and with new virtual tools, consumers are now looking for convenience, switching from one channel to another for any purchase they make.

Retailers increasingly adopt omnichannel strategies

Consumers are increasingly adopting multichannel shopping approaches. Post pandemic, in-store sales have rebounded, as consumers prefer to try products; however, they gain product knowledge through online channels. This makes omnichannel a crucial strategy for retailers. Beauty and personal care retailers are ramping up their phygital solutions to provide a seamless experience for their customers.

E-commerce keeps growing, especially for colour cosmetics and fragrances

Fragrances and colour cosmetics continue to be the most dynamic beauty and personal care categories for e-commerce. While fragrances have added science and repurposed products towards emotions, colour cosmetics manufacturers have developed hybrid approaches and multi-benefit products. Both categories have continued to improve the consumer experience and engagement through technology.

Specialist retailers continue to invest to remain competitive

Specialist health and beauty retailers are investing in innovative store strategies to attract consumers. This includes expanding store-in-store formats in partnership with modern grocery retailers, as well as widening product portfolios to reach a diverse customer base.