Rising numbers of e-commerce shoppers are one of the main drivers of projected growth for the U.S. beauty industry, which is expected to grow from $81.1 billion in 2019 to $128.7 billion in 2030 (4.8% CAGR), per Prescient & Strategic Intelligence.
The report notes that there, there were 312.3 million U.S. internet users in 2019 and that, per the U.S. Department of Commerce, e-commerce accounted for 16.0% of all retail sales in the nation in 2019.
That was before the COVID-19 pandemic unleashed massive gains in the channel.
E-commerce gains are a positive turn for beauty, the report notes, because the category is among the most-purchased online.
The report acknowledges the toll of the pandemic on the beauty market but notes that the space has been resilient overall due to demand for soaps, sanitizers and other products.
The firm also offers a forecast for the lipstick market, which has had a tough year. Per the firm, the North American lipstick market was valued at $9.2 billion in 2018 and is expected to grow at a CAGR of 6.6% through 2024.
One expects, however, that the numbers may remain suppressed compared to projections as a result of mask culture and work-from-home rituals.
That said, the report notes that products offering powder formats, as well as enhanced benefits, will drive growth. Hydrating materials could give the category needed multifunctionality by formulating with ingredients such as vitamin E, glycerin and coconut oil, the report concludes.