Table of Contents
Overview
-
- What you need to know
- Key issues covered in this Report
- COVID-19: Market context
- Economic and other assumptions
- Products covered in this Report
Executive Summary
-
- The market
- Online penetration in beauty reaches record levels
-
- Figure 1: Central forecast for online consumer expenditure on beauty (prepared 19 August 2020), 2015-25
- The impact of COVID-19 on beauty online
- A boost in 2020 will set the channel up well for future growth
-
- Figure 2: Expected impact of COVID-19 on the online beauty market in the short, medium and long term, 19 August 2020
- Companies and brands
- Online innovation ramps up amidst COVID-19 disruption
- The consumer
- An ongoing preference for store-based shopping
-
- Figure 3: Channels used to purchase beauty/grooming products in the last 12 months, by category, June 2020
- Mobile commerce can drive purchase frequency
-
- Figure 4: Frequency of online beauty/grooming purchases in the last 12 months, June 2020
- Consumers stick to stores they know during the pandemic
-
- Figure 5: Changes in online beauty/grooming purchases since the start of the COVID-19/coronavirus outbreak, 11-22 June 2020
- Innovation is needed to improve convenience
-
- Figure 6: Issues encountered when purchasing beauty/grooming products online in the last 12 months, June 2020
- Technology can reduce the channel’s reliance on repeat purchasing
-
- Figure 7: Factors to encourage online beauty/grooming purchases, June 2020
- Lifestyle content needs authenticity to resonate
-
- Figure 8: Beauty/grooming advice desired online, June 2020
- Brand differentiation is essential to online’s popularity
-
- Figure 9: Online beauty/grooming purchase behaviours, June 2020
COVID-19 and Beauty Online
-
- The impact on the market
- COVID-19 accelerates online beauty growth
- Store closures will further boost online demand
- Trust and convenience influenced where consumers shopped
- Financial hardship will drive savvy shopping habits
- The impact on companies and brands
- Retailers increase investment to keep pace with demand
- Online improvements increase the channel’s influence
- The impact on the consumer
- Consumers reduce spend on discretionary beauty
- COVID-19 will drive savvy shopping habits
- Online spend benefits from reduced retail footfall
- Supply and demand issues hold back online spending
- An eroded in-store experience will continue to boost online demand
- Online sampling initiatives will resonate now more than ever
Issues and Insights
-
- COVID-19 shifts online buying behaviours permanently
- Innovation will be necessary to maintain heightened demand
- Multichannel habits present opportunities to drive long-term growth
The Market – Key Takeaways
-
- The online channel reaches new consumers
- Store-based retailers regain online ground
- Economic turbulence will intensify price competition
- Online engagement will see new brands come to the forefront
Market Size and Forecast
-
- COVID-19 boosts online beauty engagement
-
- Figure 10: Expected impact of COVID-19 on the online beauty market in the short, medium and long term, 19 August 2020
- Growth was strong, but slowing prior to COVID-19
-
- Figure 11: Market size and forecast for online consumer expenditure on beauty (prepared 19 August 2020), 2015-25
- Record growth estimated in 2020
- Innovation could minimise the shift back in-store in 2021
- Strong growth forecast long term
-
- Figure 12: Central forecast for online consumer expenditure on beauty (prepared 19 August 2020), 2015-25
- The lipstick effect will look different this time around
-
- Figure 13: Consumer expenditure on beauty and personal care products (excluding professional services), 2007-12
- Online outperformed during the financial crisis
-
- Figure 14: All online retail sales, 2007-12
- Market drivers and assumptions
-
- Figure 15: Key drivers affecting Mintel’s market forecast, 2015-2025 (19 August 2020)
- Forecast methodology
Channels to Market
-
- Store-based specialists gain ground in 2020…
- …but the grocers are the real winners
-
- Figure 16: Retail share of online consumer expenditure on beauty products, 2018-20 (est)
- Fashion retail’s woes extend into beauty
- Amazon outperforms in the online-only space
Market Drivers
-
- Ageing population remains untapped
-
- Figure 17: Projected trends in the age structure of the population, 2018-28
- BLM movement drives demand for more diversity and inclusion
-
- Figure 18: Definition of a diverse beauty brand, August 2019
- Retail footfall decline existed pre-COVID-19
- Consumer confidence has taken a hit in 2020
-
- Figure 19: Mintel’s financial confidence index, January 2015-August 2020
- Income squeeze will see beauty priorities change
-
- Figure 20: Real wage growth – average weekly earnings vs inflation, June 2018-May 2020
- Touchpoints to reach consumers are expanding
-
- Figure 21: Channels and devices used to purchase BPC products in the last 12 months, October 2019
- Online is becoming a primary source of information
-
- Figure 22: Sources used for BPC information, March 2020
- New social platforms outperform in beauty
-
- Figure 23: Social media networks used in the last 3 months, March 2020
- Peer to peer recommendations are important
-
- Figure 24: BPC influences on social media, March 2020
- Eco-concerns are heightened online
- Experimentation is driving women online
-
- Figure 25: Categories women indicate an interest in experimenting with unfamiliar brands, October 2019
Companies and Brands – Key Takeaways
-
- Online growth increases competition
- Making online beauty shopping easier is a priority
- Physical trial remains important
Launch Activity and Innovation
-
- New market entrants increase competition
- Delivery investment speeds up service
-
- Figure 26: Superdrug Stuart Delivery, 2020
- The rise of virtual consultations
-
- Figure 27: Bobbi Brown Virtual Services Homepage, August 2020
- Product recommendations continue to evolve
-
- Figure 28: The Inkey List #askINKEY Campaign, 2020
- Figure 29: Boots No7 Personalised Skin Analysis, 2020
- Breaking down barriers with sampling services
- Virtual testing gains momentum in 2020
-
- Figure 30: Pinterest Try-On Experience, 2020
- Livestreaming comes to the forefront
-
- Figure 31: Facebook Shops Live Shopping Features, 2020
- Expanding the online wellbeing proposition
- Putting a spotlight on new and niche brands
- Online retailers leverage own-label opportunities
-
- Figure 32: Glossybox Skincare, 2020
The Consumer – Key Takeaways
-
- Opportunities to further expand online’s reach
- New strategies are needed to encourage first-time purchases
- Innovation will drive online frequency and repertoires
- Retailers need to respond to conscious consumerism
The Impact of COVID-19 on Beauty Consumers
-
- Store anxieties boost online demand
-
- Figure 33: Level of concern regarding exposure to COVID-19, 20 March – 14 August 2020
- Cautious spending habits are kicking in
-
- Figure 34: Change in BPC spending since the start of the COVID-19/coronavirus outbreak, by age, 18-30 June 2020
- Health and wellbeing comes to the forefront
-
- Figure 35: Reasons for reduced spend on BPC since the start of the COVID-19/coronavirus outbreak, 18-30 June 2020
- Reduced demand will drive discounting activity
-
- Figure 36: Feelunique newsletter, August 2020
- A cautious approach to marketing will be necessary
-
- Figure 37: Ways in which BPC spending habits will change in the face of an income squeeze, 18-30 June 2020
- The lipstick effect will rely on newness
-
- Figure 38: Reasons for increased spend on BPC since the start of the COVID-19/coronavirus outbreak, 18-30 June 2020
- An eroded in-store beauty experience will benefit online
-
- Figure 39: Beauty/grooming purchase behaviours since the COVID-19/coronavirus outbreak, 18-30 June 2020
- Help consumers replace experiences with “insperiences”
-
- Figure 40: Guy Morgan DIY Face Mask Workshop, 2020
-
- Figure 41: Earl of East DIY Bath Salts Workshop, 2020
Channels Used to Purchase BPC Products
-
- Shift online is more pronounced in electrical goods
-
- Figure 42: Channels used to purchase beauty/grooming products in the last 12 months, by category, June 2020
- Replacement purchases drive online beauty sales
-
- Figure 43: Online purchase of beauty/grooming products amongst buyers, by category, June 2020
- Women over-55 are embracing the online channel
-
- Figure 44: Channels used to purchase beauty/grooming products in the last 12 months, by age and gender, June 2020
- Use delivery passes to strengthen the online repertoire
-
- Figure 45: Repertoire of beauty/grooming products bought in-store and online in the last 12 months, June 2020
Frequency of Online Purchases
-
- Encourage smartphone usage to boost frequency
-
- Figure 46: Frequency of online beauty/grooming purchases in the last 12 months, June 2020
- Choice boosts purchase frequency amongst young shoppers
-
- Figure 47: Frequency of online beauty/grooming purchases in the last 12 months, by age, June 2020
- Purchase frequency boosted by COVID-19
-
- Figure 48: Changes in online beauty/grooming purchases since the start of the COVID-19/coronavirus outbreak, June 2020
- Youth engagement heightened by COVID-19
-
- Figure 49: Changes in online beauty/grooming purchases since the start of the COVID-19/coronavirus outbreak, by age, June 2020
Issues Encountered When Shopping Online
-
- COVID-19 disruption impacts online availability
-
- Figure 50: Issues encountered when purchasing beauty/grooming products online in the last 12 months, June 2020
- Online capabilities will be make or break during Christmas 2020
- Address excess packaging sooner rather than later
- Online purchase frequency influences experience
-
- Figure 51: Issues encountered when purchasing beauty/grooming products online in the last 12 months, by age and gender, June 2020
Factors to Encourage Online Purchases
-
- Technology aids new purchases
-
- Figure 52: Factors to encourage online beauty/grooming purchases, June 2020
- Engage consumers with creative promotions
-
- Figure 53: Cult Beauty Haul of Fame Awards, 2020
- Samples expand online’s reach
-
- Figure 54: Factors to encourage online beauty/grooming purchases, by gender, June 2020
- Go beyond discounts to reach a wider audience
-
- Figure 55: TURF analysis – beauty online, June 2020
- Figure 56: Table - TURF analysis – beauty online, June 2020
- TURF analysis methodology
Beauty and Grooming Advice Desired Online
-
- Incorporate lifestyle guidance into content
-
- Figure 57: Beauty/grooming advice desired online, June 2020
- Target men with a holistic approach to grooming
- Demand for age-related content is strong
-
- Figure 58: Beauty/grooming advice desired online amongst women, by age, June 2020
- Women need guidance at each life stage
-
- Figure 59: Balance – menopause support app, 2020
Online Research Behaviours
-
- Offset price competition with payment solutions
-
- Figure 60: Online beauty/grooming research behaviours, June 2020
- Drive app usage to engage women in-store
-
- Figure 61: Agreement with online beauty/grooming research behaviours, by gender, June 2020
-
- Figure 62: Boots UK Shopping App, 2020
- Use livestreaming to engage young consumers
-
- Figure 63: Agreement with online beauty/grooming research behaviours, by age, June 2020
- Catering to eco-conscious young consumers
-
- Figure 64: Cult Beauty Provenance Partnership, 2019
Online Shopping Behaviours
-
- Exclusive brands drive consumers online
-
- Figure 65: Online beauty/grooming purchase behaviours, June 2020
- Using physical spaces to support online
-
- Figure 66: Glossier Pop-Up, London, 2019
- Create relatable online content to drive sales
-
- Figure 67: Online beauty/grooming purchase behaviours, by gender, June 2020
- Savvy shopping behaviours are widespread
-
- Figure 68: Online beauty/grooming purchase behaviours, by age, June 2020
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Back to top