Marketplace Observatory

Beauty e-commerce: features, forecasts, and markets

Beauty e-commerce is a constantly evolving sector. What are the characteristics and forecasts for the future?

Published 20 Oct 2023

The Beauty, Health, Personal & Household Care industry is constantly evolving, and the e-commerce sector has played a fundamental role in this transformation.

With the growing interest in beauty and personal well-being, an increasing number of consumers are turning to the digital world to meet their product and service needs.

For regularly purchased products, online shopping offers significant advantages to consumers, such as 24/7 availability and home delivery.

The beauty e-commerce websites have experienced explosive growth in recent years, thanks to a vast selection of products and brands, competitive prices, and inspiring content.

The beauty e-commerce websites market

According to Statista, the Beauty, Health, Personal & Household Care market records a global turnover of $377.1 billion in 2023.

Personal Care emerges as 54% of this market share. Globally, the United States, China, and Europe stand out as the top three markets, representing approximately 73% of the entire global market.

In 2023, China leads with revenues of $105.6 billion, followed by the United States with revenues of $93.3 billion.

In Europe, the United Kingdom distinctly stands out as the predominant market, followed by Germany and France.

For the period between 2023 and 2027, annual growth rates (CAGR) of around 11% are expected for Europe and the United States. China is anticipated to register a CAGR growth of 9.69%.

Beauty e-commerce websites: a growing sector

E-commerce in the Beauty, Health, Personal Care, and Household Products sectors is experiencing a remarkable annual growth rate of 14.5%.

Data provided by Statista highlight a consistent revenue growth, starting from $146.6 billion in 2017 and reaching an impressive figure of $566.5 billion in 2027.

This trend confirms the significant prosperity of this online sector and underscores its increasingly relevant role in the global economy.

The beauty e-commerce market in the United Kingdom

With revenues of $14.9 billion, the United Kingdom represents the largest market among the top five countries in Europe in 2023. It is expected to reach $21 billion by 2027.

Germany ranks second with a growth rate of 8%, demonstrating a solid development outlook. Meanwhile, France and Spain both show a growth rate of 9%. Italy stands out with a growth rate of 12%, highlighting considerable expansion potential in the considered sectors.

Germany: European leader in beauty product demand

In 2023, Germany stood out as the leading European country in the demand for beauty, health, personal care, and household products sold online, with a substantial 77.1 million consumers. This number is expected to increase to 88.3 million by 2027.

Other European countries, including the United Kingdom with an anticipated growth of 4%, France with 3%, Italy with 6%, and Spain with 3%, follow the same direction, demonstrating the continent’s growing interest in this sector.

 

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