Online Beauty and Personal Care Market Size, Share, Industry Analysis, Trends, Growth, 2032

Online Beauty and Personal Care Industry Prospective:

The global online beauty and personal care market size was worth around USD 60.43 billion in 2023 and is predicted to grow to around USD 160.97 billion by 2032 with a compound annual growth rate (CAGR) of roughly 11.5% between 2024 and 2032.       

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Online Beauty and Personal Care Market: Overview

Online beauty and personal care are defined as products including personal grooming, haircare, cosmetics, skincare and others sold through online platforms. The online platform includes websites, mobile apps and other digital channels where consumers can browse, purchase and receive beauty and personal care goods without visiting physical stores.

The online beauty and personal care market is driven by various factors including growing penetration of smartphones across the globe, increasing e-commerce industry, deployment of 5G infrastructure, growing number of startups in the area of beauty and personal care, rising investment and many others.

Key Insights

• As per the analysis shared by our research analyst, the global online beauty and personal care market is estimated to grow annually at a CAGR of around 11.5% over the forecast period (2024-2032).
• In terms of revenue, the global online beauty and personal care market size was valued at around USD 60.43 billion in 2023 and is projected to reach USD 160.97 billion, by 2032.
• The growing smartphone penetration across the globe is expected to propel the market growth.
• Based on the type, the skin and sun care products segment is expected to dominate the online beauty and personal care industry over the projected period.
• Based on gender, the women segment is expected to hold the largest market share during the forecast period.
• Based on the nature, the organic segment is expected to grow at the highest CAGR during the forecast period.
• Based on region, the Asia Pacific is expected to grow at a significant rate over the projected period.

Online Beauty and Personal Care Market: Growth Drivers

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Growing consumer awareness drives market growth

The growing consumer awareness of beauty and personal care goods is one of the key drivers propelling the online beauty and personal care market. Urbanization has increased people's propensity to accept new habits and products. Increased exposure to international beauty trends as a result of the growth of social media platforms and influencer marketing lends support to this change.

Furthermore, customers are spending money on beauty and personal care items as they become more conscious of the value of taking care of themselves and keeping a presentable look. In addition, the demand for cosmetics, skincare, hair care, perfumes, personal hygiene products, and grooming equipment has increased due to the growing affluent population and their increased buying power.

Online Beauty and Personal Care Market: Restraints

Logistics issue hampers market growth

The expansion of the worldwide market for online beauty and personal care products is hampered in part by issues with logistics management, such as incorrect postal addresses and other logistical complexities. Due to these complications, overhead expenses rise and profit margins are reduced. The absence of high-quality delivery services also damages the company's brand, which lowers the number of clients it serves. To provide efficient and secure delivery services, online players hire more field workers, which raises labor costs that are deducted from their earnings and reduces their profit margins.

Consequently, e-retailers are required to concentrate on efficiently distributing orders through partnerships with reputable local third-party logistics companies. This keeps merchants from having to pay extra for labor. However, throughout the projected period, logistics-related issues are anticipated to hinder the market.

Online Beauty and Personal Care Market: Opportunities

Growing acquisition offers a lucrative opportunity for market growth

The growing acquisition is expected to offer a lucrative opportunity for the online beauty and personal care industry during the forecast period. For instance, in March 2022, the Australian cosmeceutical and clean skincare firm Grown Alchemist was acquired by the L'OCCITANE Group, a prominent global retailer and maker of sustainable beauty and well-being products. The company, which was co-founded in 2008 by brothers Keston and Jeremy Muijs of Melbourne, has quickly gained a global following due to its emphasis on cutting-edge anti-ageing technology and exclusive botanical skincare formulae for the best possible skin health.

Grown Alchemist is a dynamic, entrepreneurial management team-led manufacturer of high-performance, results-driven natural skincare products that fully embody the L'OCCITANE Group's idea. The Australian clean beauty brand complements the Group's values of sustainable sourcing, protecting natural biodiversity, and cutting waste. Its product line includes nutricosmetics as well as body and haircare products.

Online Beauty and Personal Care Market: Challenges

Building brand loyalty is one of the major challenges that restrict market growth

Unlike other things, beauty products aren't purchased every day or every week, nor do they have a set season or set of occasions to focus on. The majority of the time, people buy cosmetics in cycles throughout the year. This suggests that companies have ongoing difficulties in retaining consumers interested enough to make repeat purchases. Thereby, posing a major challenge for the market expansion over the forecast period.

Online Beauty and Personal Care Market: Segmentation

The global Online Beauty and Personal Care industry is segmented based on type, gender, nature and region.

Based on the type, the global online beauty and personal care market is bifurcated into skin and sun care products, makeup and color cosmetics, hair care products, deodorants and fragrances and others. The skin and sun care products segment is expected to dominate the online beauty and personal care industry over the projected period. The segment expansion is attributed to the rising innovation in skincare and suncare products. In addition, a growing awareness among consumers of their appearances and the harmful effects of UV rays while direct exposure to sunlight.

Based on gender, the global online beauty and personal care industry is categorized into men, women and unisex. The women segment is expected to hold the largest market share during the forecast period. When making judgments about what to buy, women frequently consult thorough product descriptions and user reviews. Women may select items that are tailored to their requirements with the assistance of online beauty platforms, which offer a plethora of information such as product descriptions, usage guidelines, and customer reviews.

Based on nature, the global online beauty and personal care market is categorized into conventional and organic. The organic segment is expected to grow at the highest CAGR during the forecast period. The segment expansion is attributed to the growing consumer awareness regarding the side effects of synthetic products.

Online Beauty and Personal Care Market: Report Scope

Regional Analysis

The Asia Pacific is expected to grow at a significant rate over the projected period

The Asia Pacific is expected to grow at a significant rate over the projected period. The growth in the region is attributable to the rising disposable income of the population and the growing urbanization. For instance, according to the Ministry of Statistics and Programme Implementation, between 1950 and 2023, India's disposable personal income averaged USD 470,561.10 million, with a record low of USD 1,103.45 million in 1950 and an all-time high of USD 3,580,836.58 million in 2023.

Similarly, as per the data published by the United Nations, over 2.2 billion people, or 54% of the world's metropolitan population, reside in Asia. Asia's urban population is predicted to increase by 50% by 2050, adding 1.2 billion more residents. Moreover, the growing penetration of smartphones along with the deployment of the next generation connectivity (e.g. 5G) will further propel the online beauty and personal care industry in the region.

Online Beauty and Personal Care Market: Competitive Analysis

The global online beauty and personal care market is dominated by players like:

• LOREAL S. A.
• Beiersdorf AG
• Avon Products Inc.
• Church & Dwight Co. Inc.
• Henkel AG & Co. KGaA
• Johnson & Johnson
• Kao Corporation
• Koninklijke Philips N.V.
• L'Occitane International SA
• Oriflame Cosmetics AG
• Reckitt Benckiser Group PLC.
• Limited
• Procter & Gamble Company
• Unilever
• Shiseido Company
• Estee Lauder Companies Inc.

The global Online Beauty and Personal Care market is segmented as follows:

By Type

• Skin and Sun Care Products
• Makeup and Color Cosmetics
• Hair Care Products
• Deodorants and Fragrances
• Others

By Gender

• Men
• Women
• Unisex

By Nature

• Conventional
• Organic

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa