According to P&S Intelligence, there were 312.3 million internet users in the U.S. in 2019 and e-commerce accounted for 16.0% of all retail sales in the nation. Even before the COVID-19 pandemic, these numbers were consistently increasing.
“The growing e-commerce industry bodes well for the U.S. beauty and personal care products market, as fast-moving consumer goods (FMCGs), including beauty products, are some of the most-purchased commodities via online platforms,” explains P&S Intelligence.
Actually, a wide variety of beauty products, including clean beauty products and hyper-personalized skincare products, is available online at reasonable rates and, sometimes, at substantial discounts. This abundant offer has helped increase their penetration in the country, according to P&S Intelligence.
Mixed impact of the COVID-19 pandemic
Of course, the COVID-19 pandemic is having a negative impact on the market. “Sales of actual beauty products have reduced due to subdued manufacturing and supply, lower wages, and widespread unemployment,” explains the market research firm. For instance, L’Oréal has recorded 4.8% lower sales in North America during the pandemic.
However, not every section in the market has reported disappointing statistics. The demand for toiletries, including soaps and sanitizers, has soared in the country, as regular washing of hands is being considered one of the best ways to protect oneself against the virus.
Furthermore, as stores were closed, the sales from online channels have increased.
According to P&S Intelligence, the cotinuous growth of on-line sales is one of the primary reasons the U.S. beauty and personal care products market is set to grow from $81.1 billion in 2019 to $128.7 billion in 2030, at a steady 4.8% CAGR during 2020-2030.
Click & collect to attract more shoppers
In the coming years, the U.S. beauty and personal care products market is predicted to witness the most-rapid advance in the click & collect category, under segmentation by mode of purchase.
In this mode, people pay for the products online and then collect them from a designated store. “This mode saves the time of people otherwise spent in long queues at hypermarkets,” highlights the market research firm.