While the beauty and personal care category experienced disruptive innovation and growth leading up to 2020, many brands and retailers were dealt huge setbacks during the pandemic. According to Baird, the pandemic put the beauty industry amongst the top ten most negatively impacted industries, which witnessed a decline in retail revenue of about 32%, as consumers reduced discretionary spending on makeup, hair, and personal products due to elevated levels of unemployment, social distancing, stay-at-home orders, and mask mandates, which altered consumer behavior – and the use of beauty products – drastically. Consumers quickly relied less on “try before you buy” in stores and leaned more on brands that supported the stay-at-home economy.

However, as economies have opened back up, in-store and e-commerce experiences have advanced technologically, and more digitally savvy consumers have entered the market, the scale at which the beauty industry is bouncing back is proving to be monumental. According to Statista, revenue in the Beauty & Personal Care market will amount to $82m in 2021 in the US, as it is projected to grow at an annual rate of 4.75%, and $56m in China at an annual rate of 8.75%, between 2021 -2025.

Statista, also reports that 32% of beauty and personal care market revenue projections in the US will be generated through online sales. Tech innovations and digital channels, such as augmented and virtual reality (AR/VR), live streaming, direct-to-consumer e-commerce sites, social shopping, and influencer marketing, have paved new ways for brands and retailers to engage with consumers, while these tech innovations and digital channels offer consumers a unique opportunity and experience to shop, create, and interact with the brands and products they love.

Our latest infographic prepared by BDS’ Business Intelligence (BI) team illustrates the current state of the beauty industry along with insights into its projected success. To learn more about how BDS is using insights like these to approach the entire connected commerce journey, visit https://www.bdssolutions.com/.