Why Will the Home-Delivery Category Dominate the U.S. Beauty Products Market?

The major drivers in the U.S. beauty products market are rising disposable income and consequently rising personal care expenditure, a paradigm shift in consumer preferences toward zero-chemical and natural products, and increasing incidence of skin diseases, and a surging aging population. Thus, the sales value of these products is predicted to touch $128.7 billion in 2030. The market is projected to advance at a 4.8% CAGR from 2020 to 2030. The outbreak of COVID-19 had disrupted many industries and this market was no exception. The sales reduced significantly and the logistics were ruptured.

Furthermore, there was a fall in the sales of beauty products by L’Oréal S.A. by approximately 5% in North America. The supply chain was disrupted thoroughly including the raw material supply across the region which is required for the production of beauty commodities. However, not every part of the market witnessed a dip. For instance, the sales through online channels have been rising as the shops were closed because of the lockdown imposed on the U.S. economy. There was a surging awareness amid the pandemic and subsequently disinfectants, sanitizers, soaps, and toiletries have accounted for high sales.

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The biggest share is held by the skincare category in the U.S. beauty products market within the type segment, and the category will continue to exhibit this trend in the coming years as well because of the skyrocketing demand from the entertainment and fashion industries, and the gradually rising Generation Y population in the U.S. workforce. Furthermore, the rising inclination toward skincare routines, coupled with an increasing count of wellness- and health-oriented consumers. Therefore, a rising desire for self-care products will augment growth in the skincare category.

Within the distribution channel segment, the new cross-category distribution point category in the U.S. beauty products market is predicted to advance at the highest CAGR in the coming years. It is a diligent offline distribution channel that encompasses numerous beauty product brands under a single roof, which simplifies shopping. It provides the trial facility which assists the consumers to get a quality check on the products, thereby exerting a push on the consumers’ expenditure on these products. This marketing technique plays a prominent role in influencing the desire to consume.

The home delivery category will be the highest revenue generator in the mode of purchase segment of the U.S. beauty products market in the future because home delivery is the most convenient option for a consumer to get utmost customer satisfaction, and fetch the desired product at the doorstep with a single click, with online payment options. This increases the accessibility of the product. In addition, it offers incentives for online payments, huge discounts on the latest products, an exclusive range of products, and most importantly, easy replacements and returns if the product does not meet the preferences of consumers.

The preference of consumers toward the easy-to-use at-home beauty devices and products will spur the U.S. beauty products market growth. the rising availability of convenient products for skin rejuvenation, de-pigmentation, acne reduction, blackheads removal, hair growth, and hair removal will drive the market. Apart from providing utmost ease, these products also possess high efficiency. This accompanied by a booming e-commerce sector will pave the way for market players to reap larger profit margins from the rising sales of these products.

There is a snowballing demand in the market as it caters to the needs of a major chunk of the U.S. population: the elderly and younger population. While the elderly population tries to conceal the signs of aging, the young population tries to retain their youthful look.