Is the beauty industry growing? Especially ecommerce cosmetics in 2021, 2022, and beyond? Absolutely.
Globally, the industry is strong and only getting stronger.
How big is the beauty industry? Up from $483B in 2020 to $511B in 2021 — and with an annual compounded growth rate of 4.75% worldwide — it’s predicted to exceed $716B by 2025. And $784.6B by 2027.
The kindling? Rapid expansion through digital channels and the attraction of more customers willing to pay higher prices for higher quality.
As emerging nations grow in purchasing power and become globalized, they offer budding promise for international companies to enter — if they bring higher quality products than those available locally along with them.
By geography, Asia Pacific and North America dominated; accounting for more than 60% of the total.
With shopping preferences differing from county-to-country, brands looking to rule on a global scale must follow a customer-centric model that intersects both digital and physical channels.
Much like the experiential home furnishings industry, offline shopping still rules — luring a whopping 81% of buyers. At the same time, offline’s share is declining while online climbs.
Though the distribution methods are evolving, traditional chains still play the largest role in the US. For anyone following ecommerce’s trending growth, that shift is hardly a surprise.
Aside from superstores like Walmart and Target, the biggest vertical-specific players are Ulta and Sephora.
The same holds true on a worldwide scale.
For more than a century, production has been controlled by a handful of multinational conglomerates. The long-reigning legacies — L’Oréal, Unilever, Procter & Gamble, and Estée Lauder Companies — made up a whopping 81.7% of worldwide revenue in 2019.
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