Table of Contents
Executive Summary
-
- Top takeaways
- Market overview
-
- Figure 1: Total US retail sales and forecast of beauty products, at current prices, 2015-25
- Impact of COVID-19 on Beauty
-
- Figure 2: Short, medium and long term impact of COVID-19 on beauty Retailing, October2020
- Opportunities and Challenges
- Challenge: disrupted beauty routines will create challenges with driving basket size
- Opportunity: evolve the digital experience to aid with research and inspire unplanned purchases
- Challenge: consumers are evolving their beauty routines, beyond face-value
- Opportunity: holistic wellness focus drives interest in new products and retail channels
- Challenge: lack of diversity leaves some consumers underserved
- Opportunity: cater to Black consumers through representation in product lines and marketing efforts
The Market – What You Need to Know
-
- Shifts in lifestyles and spending create challenges for beauty retail
- Conscious consumerism is changing the way people shop
- Adding entertainment value may encourage impulsive purchases
Market Size and Forecast
-
- Decreased use and limited spending causes declines in total beauty retail sales
-
- Figure 3: Total US retail sales and forecast of beauty products, at current prices, 2015-25
-
- Figure 4: Total US retail sales and forecast of beauty products by segment, at current prices, 2015-25
- Impact of COVID-19 on Beauty Retailing
-
- Figure 5: Short-, medium- and long-term impact of COVID-19 on beauty retailing, October 2020
- Lockdown
- Reemergence
- Recovery
- COVID-19: US context
- Learnings from the last recession
Market Factors
-
- Budget-conscious consumers reevaluating how much they spend on beauty
- Beauty consumers expect to see diversity at retailers
-
- Figure 6: Number of households, by race and Hispanic origin of householder, 2013-23
- Retailers replace the in-store experience with virtual tools and chats
-
- Figure 7: Urban Decay live pride-day makeup tutorial, May 2020
- Conscious consumers impact beauty
-
- Figure 8: Beautycounter product page, October 2020
Market Opportunities
-
- Embrace the fun
-
- Figure 9: Tactha Animal Crossing Experience. July 2020
- Affordable clean beauty will have widespread appeal
-
- Figure 10: CeraVe partner video on #maskne, August 2020
- Reinvent the product sample offering
Companies and Brands – Key Takeaways
-
- Beauty brands are rethinking customer engagement
- Diversity in the beauty aisle
Competitive Strategies
-
- Beauty brands and retailers adapt to the multichannel experience
-
- Figure 11: Shopping method – NET, August 2020
-
- Figure 12: Sephora and Instagram partnership, June 2020
- Figure 13: Bobbi Brown virtual consultations, July 2020
- Going beyond skin deep: beauty brands are embracing holistic wellness
-
- Figure 14: Maybelline virtual health summit, October 2020
- Representation in the beauty aisle needs to change
-
- Figure 15: Beautycounter change beauty forever, August 2020
The Consumer – What You Need to Know
-
- High-use essentials are top purchases
- The competitive landscape is shifting
- Beauty shoppers make informed and considerate purchases
- Approaches and attitudes toward beauty shopping are changing
Consumer Trends Impacting Beauty Retailing
-
- Value
- Wellbeing
- Surroundings
Changes Because of COVID-19
-
- The pandemic disrupted beauty consumption
-
- Figure 16: Changes because of COVID-19, August 2020
- Younger shoppers still want to explore, and the comfort of home may be the perfect place to do so
-
- Figure 17: Select changes because of COVID-19 – by age, August 2020
Items Purchased
-
- High-use essentials are driving the category
-
- Figure 18: Items purchased, August 2020
- Black consumers’ purchases indicate a possible gap in assortment
-
- Figure 19: Items purchased, by race – August 2020
Retailers Shopped
-
- Consumers are shifting their purchases online
-
- Figure 20: Shopping method, August 2020
-
- Figure 21: Retailers shopped – online, August 2020
- Convenience influences where men shop for beauty
-
- Figure 22: Retailers shopped online – by gender, August 2020
- A combination of value and experience appeals to multicultural consumers
-
- Figure 23: Select retailers shopped – by race and Hispanic origin, August 2020
Purchase Considerations
-
- Beauty purchases go beyond price and brand
-
- Figure 24: Purchase considerations, August 2020
- Ingredients and recommendations influence young women
-
- Figure 25: Purchase considerations – by gender and age, August 2020
Shopping Behavior
-
- Beauty shopping is an involved process
-
- Figure 26: Shopping behavior – NET, August 2020
- Figure 27: Beautyque 3D virtual store, September 2020
- The in-store experience draws in adventurous, younger shoppers
-
- Figure 28: Select shopping behavior – NET – by generation, August 2020
- Multicultural consumers want to invest in the right brands
-
- Figure 29: Shopping behavior – NET – by race and Hispanic origin, August 2020
Attitudes toward Shopping for Beauty
-
- Women are evolving their beauty routines in response to current lifestyle shifts
-
- Figure 30: Attitudes toward shopping for beauty – by age and gender, August 2020
- Educational engagement can keep older shoppers invested in beauty online
-
- Figure 31: Turner Classic Movies Podcast introduction and instructional video, May 2020
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Back to top