Our Black Friday Sale is now live until Monday 29th November 2021! Apply a 15% discount to your cart in Store using promotional code: EBLACKFR21

Health and Beauty We examine the trends underlying the growth of the global health and beauty marketplace, highlighting the critical innovations and behaviours that are driving industry evolution.

Small Beauty Formats to Profit from Rising E-Commerce

3/30/2018
Mylan Nguyen Profile Picture
Mylan Nguyen Bio
Share:

Global internet access is growing rapidly, changing how consumers are purchasing goods and impacting the products’ associated packaging. In fact all packaging aspects, including primary, secondary, closure and shipment packaging are now playing a larger role in protecting their contents during delivery, while also answering consumers’ new preferred formats when purchasing goods online. In beauty and personal care, this notably translates into growing demand for smaller pack sizes which provide consumers with choice, affordability and convenience.

Globally online sales of beauty and personal care products are led by discretionary categories, namely skin care, colour cosmetics and fragrances. These categories tend to show higher penetration of internet retailing, all being above the industry average of 7% of beauty and personal care products being bought online. Increasingly, these beauty products show a trend towards smaller pack sizes, as these more affordable formats allow consumers to try more products for the same cost.

Consumers also have access to a larger choice of products online, as it is easier and more cost effective for retailers to offer smaller formats such as samples and travel size products than in physical stores. Online beauty specialist Feelunique, present in Europe but also in China and the US, aims to provide premium and luxury products in sample sizes to make them more accessible to customers, while these samples also represent a good promotion tool for brands. The company’s “Pick ‘n’ Mix” sample offer consists of consumers choosing five free samples from a choice of over 300 products and only pay the shipping fee. Amazon also recently launched its Beauty Box, offering a curated selection of samples to purchase. Unlike the traditional monthly subscription model, customers choose from samples available at all times. The Amazon Beauty Box was well received by consumers and was rapidly out of stock soon after its launch.

Looking at skin care, the global adoption of multi-step skin care routines also supports this trend. Consumers are using a larger number of products, which tend to be in smaller pack sizes, as part of their daily skin care regimen. As a result, over 2016-2021, 0-50ml is the pack size expected to see the strongest growth in skin care. Skin care is also the category with the largest internet retailing penetration. As such, the growing popularity for 0-50ml products will also most likely be seen in skin care purchased through internet retailing.

As online sales of beauty products continues to grow, the shift towards smaller pack sizes is also expected to apply to other beauty categories, such as colour cosmetics and fragrances. This trend is expected to be popular among new generations of consumers, Millennials and Generation Z, who like to test new products and have a wider choice of products available at home.

Interested in more insights? Subscribe to our content

Latest Insights

In-cosmetics Asia Online Conference

Euromonitor International 11 November 2021

The Beauty Innovators Forum

Euromonitor International 09 November 2021

The Rise of Digital Resale in North America

Euromonitor International 05 November 2021

Shop Our Reports

Exploring the Evolving Landscape of Dermocosmetics

Dermocosmetics benefited from COVID-19-induced consumer desire for safety, transparency and science. Active consumer digital engagement and strong e-commerce…

View Report

Voice of the Industry: Home Care 2021

In the Voice of the Industry Survey series, Euromonitor connects with industry professionals to explore trends and innovations. This report focuses on the home…

View Report

Online Retailer Negotiations: Price Gaps & Opportunities

The report illustrates how invaluable extracting, harvesting and organising millions of data points from online retailers can enable suppliers to find potential…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More