Online beauty sales to account for 30% of global sales by 2026

According to foreign media reports, online beauty product sales will account for nearly one-third of global health and beauty sales in 2026.

Currently, Pureplay, Amazon, Alibaba and JD.com have become the main giants in the e-commerce beauty products category, and their growth rate is expected to be 4-5 times that of major offline beauty product retailers such as Walgreens Boots Alliance and CVS Health in 2026. In 2021, online sales of beauty products accounted for one-fifth of global beauty product sales, and it is expected that by 2026, online beauty product sales will account for nearly one-third of global health and beauty sales.

According to a survey report by Edge Retail Insight, the research and data insights division of Ascential, e-commerce for health and beauty products is growing more than three times faster than physical retail due to the outbreak of Covid-19, prolonged policy blockades, and the closure of commercial streets and shopping malls. The report predicts that global sales in the health, beauty and personal care retail categories will increase by $305 billion to $1.34 trillion between 2021 and 2026. More than 50% of the growth comes from online e-commerce, as the impact of the epidemic has accelerated the transformation of people's shopping methods.

According to Edge Retail Insight , online category sales will have a compound annual growth rate (CAGR) of 12.1% between 2021 and 2026 , far outpacing the 3.3% CAGR for physical store sales .

Deren Baker, CEO of Edge by Ascential, said: "In the online age, brands have been rapidly experimenting with innovative digital technologies to engage customers remotely, such as using augmented reality to let customers try on virtual lipsticks and participate in seasonal events and shoppable live broadcast opportunities provided by digital marketplace giants such as Alibaba, Amazon, JD.com, and China's fast-growing group buying platform Pinduoduo (PDD). It is expected to grow at a compound annual growth rate of 17% from 2021 to 2026 and will lead the growth of the category in the next five years."

In addition, Deren Baker emphasized that the continued surge in the beauty products market means that operating brands must focus on understanding how to optimize their growth levers in this channel. In order to improve the competitiveness of their own products, brands must use market-specific shopper engagement strategies and ensure that they have a strong fulfillment and flexible supply chain strategy to minimize delivery time and meet unexpected surges in customer demand.

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