Transaction volume in the first quarter increased by 2.9% year-on-year! The US beauty and personal care market is recovering!

It is learned that according to foreign media reports, in the first quarter of 2022, the transaction volume of the beauty and personal care category in the United States increased by 2.9% year-on-year. There has been a rebound. Overall, the US beauty and personal care market has recovered. However, given the complexity of the current economic situation, there are still many uncertainties in the development prospects of this market.

According to reports, in the first quarter of this year, 72% of US consumers reduced their spending due to rising inflation, of which 34% reduced their online spending. In addition, 62% of US consumers have a strong interest in personal health care and are increasing their spending on beauty and personal care categories compared to the same period in 2019.

Fundraising activity in the beauty and personal care market also increased this quarter. Specifically, investors were interested in beauty technology, skin care, health and wellness products, and supplements. However, interest in color cosmetics declined, with only 10 funding activities in the cosmetics field in the first quarter, which was a 150% year-on-year increase, but the number was still very small.

According to reports, the transaction activities in the beauty and personal care market decreased significantly in April, and market volatility remained the main problem. According to the news released by the Federal Reserve, the interest rate was raised by 50 basis points (0.5%) in May, and the target range of the federal funds rate was raised to between 0.75% and 1%. At the same time, it was announced that the balance sheet reduction would begin on June 1. This interest rate hike is the largest action taken by the United States since 2000.

In addition, rising prices are also an important factor. According to Bloomberg, the US Consumer Price Index (CPI) is expected to increase by 5.1% in 2022. This will have a negative impact on online transactions and fundraising activities.

It is learned that in the first quarter of 2022, online transaction volumes in January and February were stronger than in March. Although transaction volumes decreased in April, the US beauty and personal care market will continue to grow at a lower rate in the short term.

Editor ✎ Nicole/

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