Online beauty market to grow by 17% per year until 2020
The global online beauty and personal care market is forecast to grow at a rate of 16.7% per year between now and 2020, according to a new report by analyst Technavio.
The key drivers for market growth are expected to be the high rate of internet and smartphone usage and growing consumer interest in dermocosmetic products.
As of 2014, internet and smartphone usage in the US was 87.4%, with approximately 279 million web users – the third-largest globally after China and India. This high amount of time online is encouraging leading beauty brands to expand their product offerings through digital platforms, researchers discovered.
The rise in demand for dermocosmetic products – ones that combine cosmetic action with dermatological functions, a branch of dermatology concerned with the aesthetic appearance of the skin – is also predicted to be behind the surge as the segment has doubled from 2.2% to 4.4% of the global beauty market in the past 15 years.
However, the report also states that webrooming – where consumers prefer checking products online before buying them in-store – will be a challenge for the market.
Commenting on the trend, the report said: “Almost 73% of men and 61% of women worldwide prefer to check products online and then purchase them offline. Nearly 47% of consumers preferred buying from physical stores to save on the shipping costs, and 23% preferred to get the product at the same time rather than having to wait for the product.”
The Global Online Beauty and Personal Care Market 2016–2020 report covers the market landscape and its growth prospects over the next four years, with input from companies such as Estee Lauder, L’Oréal and Procter & Gamble.