Have you seen that? Retail Earnings Show Digital Shift in Health and Beauty Products Purchase
Retail earnings in the health and beauty segment have shown a significant shift towards digital channels, according to recent 2023 reports. Consumers are increasingly comfortable using online channels to purchase health and beauty products, with some even opting for omnichannel options. This trend is expected to continue, with 39% of consumers likely to increase their online purchases of health and beauty products in the next year
How the Pandemic Impacts Digital Shift?
The pandemic has played a significant role in this shift, with consumers four times more likely to purchase their make-up and personal care products online than pre-pandemic. Retailers have responded to this trend by investing in online and omnichannel experiences to engage consumers. The beauty market has proven resilient amid global economic crises and a turbulent macroeconomic environment, generating approximately $430 billion in revenue in 2022.
Retailers like Target and Walmart have reported strength in the health and beauty segment despite a general pullback in spending. Target reported that essentials and beauty grew in the mid-single digits, led by beauty product manufacturers in India, which delivered comp growth in the low-double digits. Walmart’s results noted that health and wellness items were among the more substantial segments beyond the continued strength seen in groceries.
Data showing an upgrade in Beauty Product sales.
According to a PYMNTS and Amazon Web Services collaboration, 39% of consumers will likely increase their online health and beauty product purchases in the next year. This underscores the digital shift towards buying these goods online. Amazon had 5.1% of sales in health and beauty, up from around 2% before the pandemic, and topped only slightly by Walmart, with 5.9% of the category.
Accenture research shows that consumers are four times more likely to purchase their make-up and personal care products online than pre-pandemic. Brands continue investing in online and omnichannel experiences to engage consumers.
Growth Trajectory of Beauty Products Manufacturers Market
In 2023, the beauty product companies in India generated approximately $430 billion in revenue, and it is on an upward trajectory across all categories. It has proven resilient amid global economic crises and turbulent macroeconomic environment. Beauty is now an industry that many people are turning to for self-care and preserving/improving health, and it may continue to be resilient even in the face of macro pressures.
Conclusion
The digital shift towards buying health and beauty products online is a trend that is here to stay. Retailers are investing in online and omnichannel experiences to engage consumers, and consumers are proving resilient when spending on health and beauty products. The beauty industry is on an upward trajectory across all categories and may continue to be resilient despite macro pressures.
