Topic of the week – The UK Cosmetics, Beauty and Personal Care Industry – Why You Should Be Paying Attention
Everyone knows of the Cosmetics industry in some way or another, whether you are a frequent buyer of a certain beauty product brand or have just seen an advert on television. Everything from the latest technical, science-backed skincare product to the cheap dental flossers that you have floating around your bathroom, the cosmetics industry contains everything in between. It is a highly innovative and science-driven industry that is constantly evolving, and has recently seen a boom in the UK market. The industry is mainly associated with skincare and beauty products such as mascara, moisturizer and makeup etc, however during the pandemic people became more aware of their fitness and nutrition, causing a surge in the sports supplements market. According to FutureMarketInsights the global demand for beauty supplements is forecast to increase by 13.6% CAGR across the next ten years with the global revenue predicted to reach $4,456 million USD by 2033.
According to Statista the Beauty and Personal Care market in the UK is expected to reach $4.81 billion USD revenue by 2026. Whilst the buying preference for these product categories still mostly consists of offline purchases by nature, as consumers become more savvy with online shopping, knowing what products they prefer and with more innovative online shopping methods incorporating AI and augmented reality technology, online sales are growing. Companies such as Shiseido allow customers to virtually test items, and other companies allow consumers to find their perfect skin tone match online making the purchase decision easier. In 2023 online distribution made up 17.7% which is expected to reach 21.4% by 2026. Behind the USA, the UK has the 2nd largest per-capita consumer spending in USD.
What is driving this growth? Consumers are incorporating beauty and personal care products into their daily routines, with the industry becoming wildly popular amongst younger demographics and social media culture. Celebrity owned companies and endorsements are making waves for certain brands with many creative and successful marketing campaigns throughout recent years. According to Statista most people own 3 to 5 beauty products, with the top answers to which beauty product is most important in the area of facial cleansing being day and night cream in the UK.
It is also worth noting that the Fragrance market and luxury brands fall within the overall industry. Fragrances accounted for 9.18% of the Beauty & Personal Care market revenue in 2022. The UK provided 17% share of respondents who buy premium or luxury cosmetics products. Overall, the industry is so vast, consisting of a variety of market avenues, with constant innovations. Steady growth, especially in the UK makes the Cosmetics, Beauty and Personal Care Industry definitely one to tap into.
In other news
85% of companies have already invested or plan to invest in artificial intelligence (AI) or machine learning (ML) this year, says a new manufacturing study from Rockwell Automation. A survey of 1,500 manufacturers by Rockwell Automation finds that manufacturers continue to face a significant challenge: combining people, processes, and technology to drive long-term business growth and resilience. According to the report, around one-third of manufacturing leaders cite “matching technology and talent to business need” and “effectively managing people and resources” as the biggest obstacles their organizations face over the next year.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Cosmetics, Beauty & Personal Care Market Stats
- Revenue in the Beauty & Personal Care market amounts to US$625.70bn in 2023. The market is expected to grow annually by 3.32% (CAGR 2023-2028).
- The market's largest segment is the segment Personal Care with a market volume of US$274.20bn in 2023.
- In global comparison, most revenue is generated in the United States (US$98bn in 2023).
- In relation to total population figures, per person revenues of US$81.42 are generated in 2023.
- In the Beauty & Personal Care market, 17.7% of total revenue will be generated through online sales by 2023.
*Statistics sourced from Statista Beauty & Personal Care: market data & analysis.
That’s all for this week…
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