Cosmetics in the age of the Consumer Revolution
Description
Born at the height of the digital boom, with the arrival of Amazon and Uber, new consumers are demanding immediacy, "seamless" and phygital experiences.
The beauty and personal care market will grow by 11% between 2015 and 2022, from €12.8 billion to €14.2 billion. What's more, growth is set to accelerate between 2022 and 2023, to reach €15.5 billion, representing sustained growth of +9% over the coming year.
Growth driven by the development of new distribution channels to boost sales
1) Continued growth in e-commerce sales
The main distribution channel for beauty and personal care products is physical sales, which account for 82% of global sales. However, in France, e-commerce sales have increased by 8 percentage points since 2015, rising from 4% of sales to 12%. The same phenomenon can be observed in Western Europe, where e-commerce sales have increased by 7 points respectively.
2) Beauty and hygiene brands penetrating parapharmacies
Increasing consumer demand for effective products is leading brands to favour scientific positioning and selective distribution in parapharmacies. Sales through this channel grew by a sustained 18.7% between 2007 and 2021. Of the ~21,000 parapharmacies in France, almost 1/3 sell dermo-cosmetic beauty products.
Two underlying trends are having a lasting impact on the sector, affecting all the players involved
Read more in french: https://www.digitalnativegroup.com/articles/zoom-sur-le-secteur-beaute-hygiene
Source: Digital Native Group v
