With a 7.3% increase in 2024 compared to last year, according to NielsenIQ (NIQ), the global beauty market is experiencing a major structural shift, driven by online sales and social media.
The global beauty market continues to grow, driven by the dynamism of the Latin America (+19.1%), Africa and Middle East (+27.1%) regions, but also by robust growth in North America (+7.8%) and Western Europe (+7.7%). In 2024, global sales of beauty and personal care products increased by 7.3% compared to 2023, according to NielsenIQ (NIQ).
Inflation has been a major driver of this global expansion, but the growth was also supported by increasing incomes and the influx of new consumers.
e-commerce is transforming the retail landscape
According to the consumer intelligence company, e-commerce is the main driver of global beauty sales, with varying levels of growth across regions.
In China, 87% of total hair and skincare sales are made online. In India 17% of beauty products are purchased online, while in Brazil, this number is under 10%. Despite these variations, one overarching trend is the growing dominance of online sales over in-store sales.
In the US, the growth of online sales continue to significantly outpace in-store purchases. According to NIQ, e-commerce platforms account for 43% of all beauty and personal care sales through across the country.
“Over the past four years, platforms like Amazon have gained 7.3 share points by offering competitive pricing, fast shipping, and a wide selection. Increasingly, customers are turning to Amazon to replenish their favorite products, with spending rising each year,” NIQ highlights.
According to NIQ, the shift toward online shopping is more than just a pandemic-driven trend – it’s a structural change in consumer behavior, particularly among younger generations.
Global rise of social commerce
Similarly, social commerce has become a global trend, with 68% on these platforms driven by impulse.
TikTok Shop has risen to be the 8th largest e-commerce health & beauty retailer in the US, achieving USD1 billion in beauty sales. TikTok Shop ranked as the top e-commerce merchant for cosmetics during Black Friday 2024, reflecting the platform’s role in fueling impulse purchases and brand discovery.
12.5% of US e-commerce shoppers have made a health and beauty purchase through the app, with many returning for repeat purchases. In China 31% of skin care purchases are from Douyin/TikTok Shop.
“TikTok Shop is a go-to destination for consumers to discover brands, learn about and test new products,” says NIQ.
Transforming the in-store experience
While digital commerce has seen tremendous growth in the past 5 years, in-store retail has largely stayed the same, emphasizes NIQ.
Despite the rise of digital commerce, in-store retail continues to be relevant. The retailers of the future will need to transform the in-store experience to meet the needs of modern consumers.
Shoppers appreciate the tactile experience and personalized consultations, especially for high-investment items like skincare. “Retailers will need to strike a balance between convenience and customer satisfaction and invest in hybrid models that seamlessly integrate online discovery with in-store experiences,” the company concludes.
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