5 pictures reveal the secrets! How is the US beauty and cosmetics market structured?

It is learned that eMarketer data shows that in the United States, the size of the beauty and cosmetics market is close to 100 billion US dollars. In 2023, more than 20% of beauty and cosmetics sales are expected to come from online channels, and Generation Z is the main consumer force.

For brands and sellers, the most important thing is how to layout in the most effective way to attract consumers. eMarketer released 5 data charts, which studied the market status, consumer purchase discovery channels and brand marketing, and provided reference for sellers and brands in this category.

1. Rapid growth of beauty and cosmetics e-commerce in the United States

According to McKinsey data, about 22% of global beauty retail sales will come from e-commerce channels this year. Although physical store sales are still greater than e-commerce sales, the growth rate of e-commerce sales is more obvious.

eMarketer predicts that this year, the growth of US beauty and cosmetics e-commerce sales will exceed the overall market, with growth rates of 13.6% and 10.1% respectively. Therefore, beauty and cosmetics brands should focus more on digital marketing.

2. Shopping channels for beauty and cosmetics consumers

According to Tinuiti research, about 37% of beauty and cosmetics consumers in the United States use Amazon as a product search platform, followed by Walmart (23%), retailer websites (9%) and search engines (8%). In addition, sales of health, personal care and beauty products account for 6% of Amazon's US retail e-commerce sales.

Therefore, it is more effective to place advertisements on Amazon. It is predicted that Amazon’s US retail media advertising revenue will reach 23.95 billion US dollars this year.

3. Social media is the main way consumers discover new products

A Tinuiti survey shows that when it comes to discovering new beauty and cosmetics products, about 45% of American consumers said they mainly discover them through social media, which is a higher proportion than those who discover new products through TV (30%) or in-store displays (25%).

According to Tinuiti data, Gen Z is most likely to discover new products on TikTok, while U.S. adults are more likely to discover new products on Facebook.

4. D2C brands increase their investment in TikTok advertising, but their main battleground is still on Google and Facebook

According to Rockerbox research, in the past few years, US D2C consumer goods and beauty brands have reduced their advertising investment from Facebook, while advertising spending on TikTok is increasing, and advertising funds originally invested in Facebook are shifting to the short video field. According to SimilarWeb, two of the three most visited D2C e-commerce websites last year were beauty brands, namely getfussy.com and phlur.com, which shows that the advertising strategy of D2C brands is effective.

5. Low price is an important advantage, and Generation Z demands more

According to research, price is one of the most important considerations for American consumers when purchasing beauty products. But for Generation Z, factors other than price are also important, including samples, innovative experiences, and environmental protection.

Editor✎ Ashley/

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