UK Beauty Online Market Report 2022
£ 2,195 (Excl.Tax)
Description
“Despite a decline in sales, the value of the online BPC market is not set to return to pre-pandemic levels in 2022. As many consumers cut back on spend amidst the rising cost of living, there is an opportunity for brands and retailers to emphasise the price comparison abilities of the channel. An uncertain economic environment will also see shoppers looking to treat themselves to affordable luxuries, signalling room for brands to tempt shoppers with discount codes in exchange for personal data, which can be used to leverage communication decisions. Longer term, there is opportunity to create synergies between the store and online through investment in in-store beauty tools, which can help to boost familiarity amongst beauty shoppers and drive appeal.”
– Maddie Malone, Beauty and Personal Care Analyst, October 2022
This Report will look at the following areas:
- The impact of COVID-19 and the rising cost of living on how consumers shop for beauty and grooming products
- Innovation in the online beauty/grooming market
- Why consumers choose to shop online for beauty/grooming products
- How beauty/grooming brands and retailers can boost engagement with subscriptions services
- How consumers perceive select beauty/grooming shopping tools and technologies
Table of Contents
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Overview
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- Key issues covered in this Report
- Products covered in this Report
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Executive Summary
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- The five-year outlook for beauty online
- Figure 1: Category outlook for online BPC, 2022-27
- The market
- Inflationary pressures reduce post-pandemic value dip
- Figure 2: Market size for online BPC, 2012-27
- Haircare drives online spending
- Figure 3: Market segmentation for online BPC, 2022
- Companies and brands
- Retailers invest in online marketplaces
- The consumer
- Create synergies between the store and online
- Figure 4: Purchase of beauty/grooming products, by channel, 2022
- Everyday items drive online spending
- Figure 5: Purchase of beauty/grooming products, by channel and category, 2022
- Foster loyalty with delivery memberships
- Figure 6: Factors to drive online beauty/grooming purchases, 2022
- Revamp the subscription offer to drive interest
- Figure 7: Factors to drive usage of beauty/grooming subscription services, 2022
- Maximise on the discount code opportunity
- Figure 8: Online beauty/grooming purchase behaviours, 2022
- Create an all-in-one beauty tool solution
- Figure 9: Perceptions of online beauty/grooming tools, 2022
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Issues and Insights
- Cater for those feeling an economic pinch
- Create holistic solutions to cater for all
- Drive hype, experimentation and exclusivity online
- Cater for those feeling an economic pinch
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Market Size and Performance
- Beauty online habits persist
- Figure 10: Market size for online BPC, 2017-27
- Beauty online habits persist
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Market Forecast
- Beauty online value to dip in 2022
- Figure 11: Category outlook for online BPC, 2022-27
- Financial pressures will delay post-pandemic value correction
- Figure 12: Market forecast for online BPC, 2022-27
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- Figure 13: Market size for online BPC, 2017-27
- Learnings from the last income squeeze
- Forecast methodology
- Beauty online value to dip in 2022
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Market Segmentation
- Methodology details
- Haircare drives online BPC spending
- Figure 14: Estimated market segmentation for online BPC, 2022
- Improve product descriptions in facial skincare
- Colour cosmetics brands can maximise on online tools
- Loyalty drives fragrance sales
- Methodology details
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Channels to Market
- Department stores can learn from on-trend brands and retailers
- Figure 15: Estimated retail share of online consumer expenditure on BPC, 2020-22
- Personalise the online shopping experience
- Grocers can benefit from exclusives and private label innovation
- Department stores can learn from on-trend brands and retailers
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Market Drivers
- Consumers’ financial wellbeing has fallen from the highs of 2021…
- Figure 16: Household financial wellbeing index, 2016-22
- …and most people are feeling the effects of price rises
- Internet use becomes increasingly commonplace
- Figure 17: Internet usage in the last three months yearly percentage change, 2006-20
- The metaverse battles with low awareness
- Figure 18: Awareness of the metaverse, 2022
- Align product positioning with social media trends
- Figure 19: Engagement with beauty/grooming content on social media, 2022
- Lower prices boost appeal in DTC
- Figure 20: Factors which would encourage more D2C purchasing, 2021
- Shoppers reuse and recycle, but don’t reduce
- Figure 21: Frequency of practising sustainable habits, 2021
- Facilitate research agendas in facial skincare
- Figure 22: Reasons for researching ingredients in facial skincare products, 2021
- Ensure ranges cater for all
- Figure 23: Beauty/grooming retail drivers, 2021
- Drive spend via social media
- Figure 24: Social media spend, by category, 2022
- Cater for savvy shopping behaviours
- Figure 25: Aspirations in beauty/grooming over the next 12 months, 2022
- Consumers’ financial wellbeing has fallen from the highs of 2021…
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Launch Activity and Innovation
- Retailers flag trending products
- Taping into ‘phygital’ opportunities
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- Figure 26: Examples of integrating beauty tech in-store, 2022
- Leading with accessibility features
- Online brands go offline
- Figure 27: Example of a BPC pop-up store, 2022
- Combat sampling challenges online
- Figure 28: Example of combatting sampling challenges in online BPC, 2022
- Spotlight skincare education
- The delivery race continues
- Figure 29: Examples of quick delivery services from BPC retailers, 2022
- TikTok shop launches
- Metaverse mirrors physical trends
- Figure 30: Clinique Metaverse Like Us campaign, 2022
- Figure 31: Dove Real Virtual Beauty campaign, 2022
- Fashion brands expand into online BPC
- Third-party platforms offer transparency
- Figure 32: Example of a BPC comparison specialist recommending budget-friendly alternatives to premium products, 2022
- Retailers flag trending products
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Channels Used to Purchase BPC Products
- Create synergies between the store and online
- Figure 33: Purchase of beauty/grooming products, by channel, 2022
- Everyday items drive online purchase activity
- Figure 34: Purchase of beauty/grooming products, by channel and category, 2022
- Maximise on loyalty with online subscriptions
- Price comparison abilities boost beauty electricals online
- Drive larger baskets spend online
- Figure 35: Repertoire analysis of beauty/grooming products purchased, by channel, 2022
- Create synergies between the store and online
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Purchase Drivers in Online BPC
- Foster loyalty with delivery memberships
- Figure 36: Factors to drive online beauty/grooming purchases, 2022
- Leverage data to drive targeted sampling
- Expand into new return drop-off locations
- Send automated return reminders
- Offset product waste with second-hand selling
- Offer varying means to reach customer service
- Stand out with eco-friendly delivery options
- Appeal to younger shoppers through convenience
- Figure 37: Select factors to drive online beauty/grooming purchases, by age, 2022
- Focus on price and convenience will broaden appeal
- Figure 38: TURF Analysis – Factors to drive online beauty/grooming purchases, August 2022
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- Figure 39: Table – TURF Analysis – Beauty online – Factors to drive online for beauty/grooming purchases, August 2022
- Foster loyalty with delivery memberships
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Interest in BPC Subscriptions
- Revamp the subscription offer to drive interest
- Figure 40: Factors to drive usage of beauty/grooming subscription services, 2022
- Drive hype by incorporating sold-out products
- Offer exclusivity with member rewards
- Seek inspiration from personalised subscriptions
- Drive trade-up with a tiered structure
- Offer young males a say in NPD
- Figure 41: Select factors to drive usage of beauty/grooming subscription services, by age and gender, 2022
- Revamp the subscription offer to drive interest
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Purchase Behaviours in Online BPC
- Maximise on discount code popularity
- Figure 42: Online beauty/grooming purchase behaviours, 2022
- Drive impulse spending online
- Reduce eroded value by discount events
- Link to safety videos around sharing data online
- Figure 43: Select online beauty/grooming purchase behaviours, by age, 2022
- Women demonstrate greater pre-spend cautiousness
- Figure 44: Select online beauty/grooming purchase behaviours, by gender, 2022
- Maximise on discount code popularity
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Perceptions of Online BPC Tools
- Make tutorials easy to access
- Figure 45: Perceptions of online beauty/grooming tools, 2022
- Host education sessions for virtual try-ons in-store
- Figure 46: Perceptions of virtual try-on tools, by age, 2022
- Facilitate group digital consultations
- Make product discovery quizzes more purposeful
- Create an all-in-one solution
- Make tutorials easy to access
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Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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Appendix: Forecast Methodology
- Market forecast and prediction intervals
- Figure 47: Retail value sales of beauty online, 2022-27
- Market drivers and assumptions
- Forecast methodology
- Market forecast and prediction intervals
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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