Electric Growth Continues for UK Beauty Industry

While many industries are still struggling to get back on track, others are coming out of the pandemic stronger than ever. The UK beauty and grooming ecommerce industry is one of them. In fact, ecommerce now represents the second-largest channel for cosmetics and toiletries in the UK, with growth outpacing pharmacies and drugstores.

In 2020, the market surged 42% in value terms to £1.7bn, up from £1.2bn in 2019, according to research by GlobalData. This growth means ecommerce now represents 14% of the cosmetics and toiletries UK market; this makes it the second-largest channel after hypermarkets and supermarkets.

“E-tailers have outpaced pharmacies and drugstores to take the second leading position,” says Nina Nowak, senior innovation researcher at GlobalData.

“Electric Growth” into 2025

And the growth doesn’t stop there. GlobalData went on to predict that cosmetics and toiletries ecommerce growth will continue, reaching £2.1bn by 2025. At a compound annual growth rate (CAGR) of 4.1% between 2021-2025, this growth will begin to stabilise. Nowak says the thing to keep an eye on, that will remain important to future growth and opportunities, is “perceived consumer benefits”.

“Several factors contribute to consumers’ interest in online shopping,” explains Nowak.

According to findings from GlobalData’s Q1 global consumer survey:

  • 66% of consumers said convenience was the main advantage of shopping online.
  • 64% said the time-saving aspect was what they appreciated the most.
  • 42% said they were drawn to the lower prices.
  • 41% said minimal social contact was what made them choose the option.
  • 41% also said that the variety and choice available was key for them.

“…The advanced digital tools and apps that allow personalised product choice based on a ‘selfie’ image provided by a consumer are efficiently replacing an in-store experience,”says Nowak.

The Secret for the Future

Nowak went on to say that the key for beauty and grooming brands moving forward in ecommerce is balance – and a multichannel strategy.

“E-commerce players can reinforce their place in beauty by positioning themselves as an

‘Industry expert’ with additional services such as consultations or ‘beauty regimen finders’ that provide a touch of personalisation and premium experience,” she says.

For the businesses looking to streamline processes, simplify checkout and create a one-of-a-kind customer experience, the key is to partner with the right payment processor. Make sure they understand your business type and industry, and provide services that help you keep up with consumer trends and safety concerns.

Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of izette food and drink. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.


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