How Much Money Is Makeup Companies Loosing Each Year

How today'south consumers are shopping for beauty products in the midst of the COVID-19 pandemic, according to responses of 10,000+ shoppers.

Survey at a Glance:

The PowerReviews Changing Face of the Beauty Shopper Study draws on survey responses from ten,646 active beauty consumers across the country. Key findings include:

Beauty spending has shifted online

87% say they spend more than or the aforementioned online than earlier Covid
49% say they now spend more than $fifty online on beauty products; compared to xvi% than when we asked this same question in 2019
57% of shoppers say that they had never tried more of a quarter of the beauty products they bought online in 2020 (i.eastward. they were first time purchases)
Withal, in-store beauty spending at this level has also increased: 41% say they now spend more than $50 in store, compared to 21% in 2019; 55% too say they use curbside option-up more than before the pandemic

User Generated Content (i.e. Ratings & Reviews) is CRITICAL regardless of shopping aqueduct and has increased in importance

99% always or sometimes read ratings and reviews when shopping for dazzler products online, same figure for in-store shoppers is 85%
79% focus on average star rating, 58% care about overall volume of reviews and 49% say they look for recent review content.
41% say they rely on reviews more than they did pre-Covid. This is most prominently the instance among younger generations, with 58% of Gen Zers claiming this to be the example.
User-generated imagery and video is besides key, with 38% saying it'due south more important than before the pandemic (over again this figure is highest among Gen Zers at 53%)

Social and political problems are also now significantly impacting shopping behaviors:

76% focusing on ownership products that are sustainably made
50% actively seek out products made by Blackness-owned beauty brands.

Dazzler Shopping is at an Inflection Point

In the by, when a shopper was in the market for a beauty product such equally lipstick, mascara or moisturizer, they'd drive to their neighborhood drug store or pay a visit to a dazzler counter at a local department store. And when they did, they'd find shelves dominated past products manufactured past a relatively small number of legacy brands.

Merely that'due south no longer the example. The way consumers shop for dazzler products is constantly evolving — a procedure supercharged past the Covid pandemic.

A growing number of consumers now purchase beauty products online. This has inevitably led to an increased dependence on user-generated content as shoppers seek validation for their purchases.

What's more, new beauty brands and products seem to emerge daily. And the criteria shoppers use to make buy decisions is evolving; increasingly, shoppers seek out brands and products that align with their values.

The Covid Pandemic Has Impacted Beauty Shopping Habits -- Possibly for Proficient

Just when it seemed businesses finally had a handle on the shopping habits and preferences of dazzler shoppers, Covid hit. The global health crisis has had a huge (and lasting) affect on just well-nigh every facet of life — including the way nosotros shop.

At that place's Enough of Opportunity for Customer-Centric Beauty Businesses

Beauty brands and retailers must conform their plans and strategies to effectively reach and convert today's shoppers. And in that location'southward plenty of opportunity for those that do. According to a report from Fior Markets, the global beauty and personal care products market was $493 billion in 2018. By 2026, it's expected to reach $756 billion.

By 2026, the global beauty and personal care products market is expected to accomplish $756 billion.

In society to develop effective strategies, though, brands and retailers must first understand how consumers are shopping for dazzler products — and how the global wellness crunch has shaped these habits.

Adjust Your Strategy to Concenter and Catechumen More than Beauty Shoppers

Recently, PowerReviews surveyed 10,646 consumers to shed low-cal on the shopping habits and preferences of those purchasing beauty products — specifically makeup and skincare items. Nosotros as well aimed to sympathise how dazzler shopping habits have changed since 2019, when we fielded a similar survey .

This report will share the key findings of our inquiry — as well equally practical, impactful actions beauty brands and retailers can have to run across (and exceed) the expectations of today'southward beauty shoppers…and heave their lesser line.

For the purposes of this report, "dazzler" is divers every bit products in the makeup and skincare categories.

Generations

Type of Beauty Shopper

Just getting into the dazzler space and curious what's out at that place.

Mostly sticks to the products and brands that are tried and true.

Always searching for the next best beauty products and brands.

Shopper Type by Generation

Gen Z is the generation most likely to identify equally beauty enthusiasts.

Household Income

Impact of Covid on Consumers' Beauty Habits

The pandemic has turned peoples' lives upside downward. Many people are working from domicile — while simultaneously supervising their childrens' eLearning. And the vast majority of vacations and events have been cancelled — at least for the time existence.

Beauty Habits Accept Evolved

These lifestyle changes accept led to changes in dazzler habits, too. For case, many consumers are cutting back on makeup apply, likely because they're not leaving the house as much.

In fact, our survey found that more than than one-half (54%) of consumers bespeak they vesture less makeup at present than pre-COVID.

On the other hand, it seems many consumers are making skincare a priority. More than than one-half (56%) indicate they're more focused on skincare now than they were before the pandemic.

People are spending more time at home, which means they may have more than time to devote to more thoroughly caring for their skin.

Consumers are Focusing Less on Makeup, and More on Skincare

Dazzler Spending Has Changed

The pandemic has had a negative financial impact for many consumers. According to the Department of Labor, the U.S. unemployment rate was 6.7% in December 2020.

With so many unemployed (and underemployed) people, information technology'southward not surprising that 41% of consumers say they spend less money on beauty products now than earlier COVID. Over a third (38%) indicate their beauty spending hasn't been impacted past COVID, and the remaining 21% say their beauty spending has actually increased .

The Effect of COVID on Beauty Spending

Beauty enthusiasts are the least likely to have decreased their beauty in the midst of COVID (and most likely to accept increased spending), when compared to beauty brand loyalists and beauty novices.

The Impact on Spending Habits for Different Types of Beauty Shoppers

Income besides seems to impact whether shoppers have decreased their dazzler spending — just perhaps not as much as expected. Those making college incomes are just slightly less probable to take cut beauty spending mail-COVID than those with smaller incomes.

The Affect of Income on Post-COVID Dazzler Spending

	I spend less money on dazzler products now than before COVID	I spend more money on beauty products now than before COVID	The amount of money I spend on beauty products has not inverse
$0 – $25,000	44%	18%	38%
$26,000 – $50,000	42%	20%	38%
$51,000 – $75,000	39%	21%	xl%
$76,000 – $100,000	38%	23%	39%
$100,000+	38%	24%	38%
Prefer non to say	43%	sixteen%	41%

Where Consumers Shop for Beauty Products

Online Beauty Shopping is Growing

In that location's been a well-reported uptick in eCommerce shopping since the beginning of the COVID-19 pandemic. And so it'due south probably no surprise that a growing number of shoppers are purchasing beauty products online, as well.

More than half of shoppers (53%) purchase more than beauty products online now, compared to pre-COVID. This number is fifty-fifty higher among younger consumers. 66% of Gen Z shoppers and 58% of Millennials say they spend more than online on dazzler products now than they did before the pandemic.

Likewise of note, sixty% beauty enthusiasts are spending more than online at present, compared to 39% of beauty brand loyalists. What's more, those with incomes of $100,000 or higher are more probable to have increased online beauty spending than their lower-income counterparts.

The Bear upon of COVID-19 on Online Dazzler Spending

Change in Online Spending by Beauty Shopper Type

Alter in Online Beauty Spending past Income

	I purchase less beauty products online now compared to before COVID	I buy more dazzler products online now compared to before COVID	My beauty purchasing habits have non changed
$0 – $25,000	xviii%	43%	39%
$26,000 – $50,000	13%	fifty%	37%
$51,000 – $75,000	11%	56%	33%
$76,000 – $100,000	xi%	49%	40%
$100,000+	11%	62%	27%
Adopt not to say	14%	47%	39%

Nosotros also asked consumers to indicate how much they spend each month on online beauty purchases. And equally it turns out, they're spending significantly more each month compared to merely a few years ago when we asked consumers the same question. For example, in 2019, just 2% of respondents indicated they spent more than than $101 per month on online beauty purchases. In 2021, that number has grown to 23%!

Monthly Spending on Beauty Products Purchased Online

Roughly how much money did you spend per month on online dazzler purchases?

Amazon is Actually Declining in Importance

When it comes to online shopping, in that location are near endless options. So where practise online shoppers most ofttimes starting time the buy journey for beauty products?

The starting point of nigh half (44%) of shoppers is a beauty retailer's website — think Ulta.com or Sephora.com. Amazon is a distant second, with 22% of shoppers indicating its where they start the online buy journey for dazzler products.

It's worth noting that when we asked this same question merely two years agone, 47% of shoppers indicated they typically kickoff shopping on Amazon. This suggests that Amazon has get less of a threat to beauty retailers.

And past providing great online shopping experiences, information technology's very much possible for beauty businesses to compete (and win) confronting the eCommerce behemothic.

Dazzler Retailer Websites Reign

Where beauty shoppers near often start shopping online

In-Shop Beauty Shopping Continues to Thrive

Make no mistake: the rise in beauty eCommerce doesn't mean stores are dead.

In fact, our data tells the states that the amount consumers spend on beauty products in stores each month has actually increased from 2019.

For instance, in 2019, during any given month, just iii% of consumers spent more than $101 in a store on beauty products. In 2021, that number grew to xviii%.

Monthly Spending on Beauty Products Purchased in a Brick-and-Mortar Store

A cardinal finding of this inquiry is that stores remain a popular place to purchase tried-and-true products — and discover new ones. We'll explore this in more detail after in this written report.

Stores Serve every bit Fulfillment Centers

Curbside pickup — also known equally Buy Online Pick upwards in Store (BOPIS) offers shoppers the best of both worlds. They can browse online and minimize in-person contact — but still savour the (nearly) instant gratification of in-store shopping.

The popularity of BOPIS has grown significantly among beauty shoppers. In fact, 55% say they use curbside pickup for beauty products more at present than they did pre-pandemic.

Younger generations are taking advantage of curbside pickup fifty-fifty more. sixty% of Millennials and 58% of Gen Z shoppers say they've ramped upwardly their use of BOPIS services for beauty products.

BOPIS is Growing for Beauty Shoppers

Do you utilise curbside pickup more at present than pre-pandemic?

The Role of UGC in Beauty Shopping

User-generated content — including reviews, Q&A, photos, and videos — has a big impact on purchase decisions. That's non exactly news.

But thank you to this survey, we can now clearly see that for dazzler shoppers, this content has never been more important.

Reviews Fuel Smart Dazzler Purchase Decisions Online and In Store

Our enquiry establish that all shoppers (99%) read reviews at least sometimes when shopping online for dazzler products, with 54% saying they e'er practice so.

Reviews matter for in store shoppers, too. 85% say they read reviews at least sometimes when shopping for dazzler products within the iv walls of a brick and mortar store.

How do they want to access reviews when shopping in a shop? Nearly half (45%) prefer to observe reviews by visiting the brand or retailer's website on their phones.

The message hither? Ensure your reviews are easy for shoppers to find and consume — regardless of device.

Online and In Shop Shoppers Read Reviews

Where In-Store Shoppers Desire to Discover Reviews

What elements of reviews do beauty shoppers value when making buy decisions?

79% say the average star rating is of import. More than half (58%) care nearly the overall number of reviews for a product. And 49% say the number of recent reviews is important. Note: respondents could select all that applied.

Review Elements that Matter to Beauty Shoppers

This highlights the importance of consistently generating a steady stream of great reviews.

Helpful Hint: Recency, quantity and quality of reviews all matter to beauty shoppers! So make it a priority to collect plenty of great reviews on an ongoing ground.

During the Pandemic, Dependence on Reviews Has Increased

It seems shopper dependence on reviews has only grown in the midst of the COVID-19 pandemic. 41% of beauty shoppers indicate they're more reliant on ratings and reviews now than they were before the start of the global health crisis. This number is fifty-fifty college — 58% — among Gen Z shoppers.

41% of beauty shoppers are more reliant on ratings and reviews now than pre-pandemic. This number increases to 58% for Gen Z shoppers.

Increased Dependence on Reviews past Generation

Are you more reliant on reviews now than before COVID?

Beauty Shoppers Rely on User-Generated Visual Content

Beauty products are highly personal purchases. While a children's toy will look the aforementioned regardless of who buys it, a makeup item will look different on every person.

Customer-submitted photos and videos assistance shoppers empathize what a beauty product will look like on someone like them. During Covid, user-submitted visual content has become even more than important.

Just over a third (38%) of those we surveyed say they are more reliant on user-submitted visual content now, compared to pre-Covid. This number soars to 53% amid Gen Z shoppers. Clearly, these younger consumers have an appetite for user-submitted photos and videos.

38% of beauty shoppers are now more than reliant on user-submitted visual content than they were pre-COVID. This number increases to 53% among Gen Z shoppers.

Increased Dependence on User-Submitted Visual Content past Generation

Are y'all more reliant on user-submitted photos and videos now than before COVID?

Helpful Hint: User-generated photos and videos assist beauty shoppers get realistic expectations of products -- especially when they can't try them out in person first! Be certain to collect plenty of photos and videos from your shoppers.

For Online Beauty Shoppers, Q&A Replaces the In-Shop Associate

When a consumer is shopping in a brick-and-mortar shop and has a question well-nigh a beauty product, they can inquire an in-shop acquaintance. But when they're shopping online, they oftentimes plow to the product'southward Q&A (and as nosotros mentioned earlier, consumers are shopping online a whole lot more than these days).

Then it'south probably not surprising that over a third (36%) of beauty shoppers say they're more reliant on Q&A at present than pre-COVID. Gen Z is the generation with the largest increase in dependence on Q&A. Near half (46%) say they depend on this content more now than they did before COVID.

36% of beauty shoppers are at present more reliant on Q&A than they were pre-COVID. At 46%, this number is significantly higher for Gen Z shoppers.

Increased Dependence on Q&A past Generation

Are y'all more reliant on Q&A now than before COVID?

How Shoppers Restock on Tried-and-True Beauty Products

There are beauty products that a given consumer will turn to time and time over again. Perhaps it'southward a foundation that perfectly matches a shopper'due south peel tone — or mayhap it's an eye cream that instantly makes them expect like they got a solid eight hours of sleep.

Permit's have a closer look at how consumers shop for these tried-and-truthful beauty products.

Beauty Brands and Retailers are Gaining Traction

Consumers have countless shopping options. But when it comes to shopping for beauty products they've tried before, a few of those options ascent to the top.

Near a quarter (22%) will buy on a specialty beauty retailer's website, and 21% will opt for a mass retailer'due south shop — such equally Walmart or Target. Some other 18% will buy at a specialty beauty retailer's store and 17% will buy on Amazon.

Other less popular spots for stocking up on tried-and-true beauty products include mass retailers' websites (12%) and brands' websites (ten%).

Interestingly, the popularity of speciality dazzler retailer stores and websites — every bit well as brand websites — has soared since the last time we surveyed beauty shoppers.

On the other hand, the popularity of Amazon and mass retailers seems to accept waned — at least when it comes to beauty products. Cleary, it's very much possible for dazzler brands and retailers to compete and win.

Where Consumers Store for Tried-and-True Beauty Products

When stocking upward on tried-and-true products, what makes a shopper choose one store or website over another? Some of the peak reasons include convenience, low prices, free shipping, fast delivery and loyalty points.

A Variety of Factors Attract Dazzler Shoppers Stocking up on Habitual Products

Why do you cull 1 shop or website over another?

Consumers Buy Habitual and New Dazzler Products at the Aforementioned Time

When consumers are stocking upward on their get-to beauty products, they don't just grab what they need and head for the checkout.

Instead, 94% of consumers say that when they're purchasing a habitual product, they're at least somewhat likely to as well buy a new product during the same transaction. This is up from 82% when nosotros asked the same question just a couple years ago.

It seems today'southward dazzler shoppers are more willing to effort something new than they were just a few years agone — which we'll explore more in the next department.

Shoppers More than Likely to Try Something New

When purchasing a habitual product, how likely are you to likewise buy a new product during the same transaction?

How Consumers Discover New Beauty Products

Today, consumers are spending more time at home. Many are using this as an opportunity to do things they didn't have the time for before — similar trying out new beauty products.

In fact, two in five (forty%) of those we surveyed said they're more likely to try new-to-them beauty products now than pre-Covid. This number is even higher for Millennials (46%) and Gen Z (53%). What's more, beauty enthusiasts are more likely to effort new beauty products (45%) than those who place every bit dazzler brand loyalists (26%) and beauty novices (36%).

Beauty Enthusiasts are Trying New Products Post-COVID

Are you more likely to endeavor new-to-you beauty products now than pre-Covid?

Where are they shopping for these products? And what information practice they depend on to brand confident buy decisions? Let's have a closer look.

Shoppers Buy New Beauty Products From a Diversity of Sources

Whether they're shopping online or in-store, dazzler shoppers are spending a good chunk of their upkeep on products they've never tried before.

Of note, online shoppers are slightly more likely to spend 51-100% of their budget on new products than those shopping in-store.

What Pct of Your 2020 Beauty Purchases Were For Products Yous'd Never Tried Before?

Where are consumers shopping for these new-to-them beauty products? The top 5 destinations for purchasing new beauty products are a specialty beauty retailer's website (24%), Amazon (18%), a speciality dazzler retailer's store (17%), a mass retailer's store (15%) and a brand website (11%).

Consistent with other findings in this survey, make and specialty beauty retailer stores and websites are gaining traction when compared to our results from 2019 — with Amazon losing favor.

Where Do Consumers Shop for New-to-Them Dazzler Products?

Reviews Motivate Beauty Shoppers to Try New Products

There'due south a certain level of risk associated with purchasing a product you've never bought before. So how do shoppers proceeds the conviction they need to purchase new-to-them dazzler products?

Three-quarters (74%) say ratings and reviews motivate them to endeavor new dazzler products. This number jumps to 79% for both Millennial and Gen Z beauty shoppers.

In fact, for all age groups, it seems this content is significantly more impactful than recommendations from family and friends (47%) and price (37%)!

Summit five Motivators for Trying New Beauty Products

The Impact of Influencers on Shopping Behavior

Our survey found that near one-half (45%) of shoppers are motivated past social media to try new beauty products. This number is even higher for Millennials (52%) and Gen Z (63%).

So it makes sense that a growing number of brands are investing in influencer marketing. MediaKix predicts that brands will spend up to $fifteen billion on influencer marketing by 2022.

But how exactly are beauty shoppers swayed by influencers? Let's explore.

Shoppers of all Ages are Swayed past Beauty Influencers

Over half (56%) of consumers say they are swayed by the influencers they follow to purchase beauty products. And younger shoppers are even more than likely to be influenced.

Three-quarters (74%) of Gen Z shoppers and 66% of Millennials say they are swayed to purchase dazzler products by influencers they follow.

Influencers Sway Beauty Shoppers of All Generations

Are you swayed by influencers to buy beauty products?

What's more, beauty enthusiasts are much more than likely to be swayed by influencers than other types of dazzler shoppers. This makes sense, as those who identify as dazzler enthusiasts are always on the lookout for the side by side big thing.

Power of Influencers by Shopper Type

Are you swayed by influencers to buy beauty products?

Beauty Shoppers are Loyal to Their Trusted Influencers

Does the number of followers an influencer has impact how much beauty shoppers trust them? For many, it doesn't.

Over half (52%) of consumers say they trust the influencers they're loyal to no affair their follow count.

A third (32%) say they're more willing to trust beauty suggestions from influencers they personally know, and 11% indicate they're more likely to trust micro-influencers with less than 100,000 followers.

Just v% of beauty shoppers say they almost trust macro-influencers with more than than 100,000 followers.

Dazzler Shoppers Trust Influencers of all Kinds

Which type of influencer are you well-nigh willing to trust when they recommend products?

The Changing Priorities of Today's Beauty Shoppers

In the past, shoppers weighed factors like price, brand and quality when choosing dazzler products. Of course, these factors still thing. But increasingly, beauty shoppers also seek out products and brands that align with their values.

The Majority of Shoppers Plan to Purchase Eco-Friendly Products

For many, the state of the environment is a growing concern. Every bit such, an increasing number of shoppers are seeking out eco-friendly products and brands.

Beauty shoppers are no exception. More than than 3-quarters (76%) of shoppers programme to buy beauty products in the future that are made sustainably.

Gen Z shoppers (86%) and Millennials (80%) are even more than likely to purchase sustainable beauty products.

Dazzler Shoppers Across All Generations will Seek Out Sustainable Products

Half of Shoppers Plan to Back up Black-Owned Beauty Brands

In 2020, a growing number of consumers took action in the fight for racial justice. One fashion consumers chose to support this cause was past seeking out and buying from Black-owned businesses.

According to Yelp, from May 25 to July 10, 2020 there were more than 2,500,000 searches for Black-endemic businesses — upwardly 7,043% from the aforementioned period in 2019.

So it may come up every bit no surprise that half (50%) of consumers say they plan to actively seek out beauty products fabricated by Black-owned dazzler brands. This number is even higher among Gen Z (75%) and Millennials (58%).

Younger Consumers Program to Seek Out Blackness-Owned Beauty Brands

In addition, beauty enthusiasts are much more likely to seek out Blackness-owned beauty brands (55%) than beauty brand loyalists (38%) and novices (45%). That makes sense, as these shoppers are typically more open to trying out new products.

Dazzler Enthusiasts Most Likely to Seek Out Blackness-Endemic Beauty Brands

6 Recommendations for Beauty Brands and Retailers

The style consumers shop for beauty products is evolving. And the COVID-nineteen pandemic has only sped up this evolution. Brands and retailers must arrange to encounter and exceed the expectations of beauty shoppers — or risk losing them for good.

Read on for six applied, impactful actions to take, based on the primal findings of this study.

Provide great shopping experiences across channels.

A growing number of consumers are shopping for dazzler products online, specially in the midst of the COVID-19 pandemic. Only at the same fourth dimension, brick-and-mortar retail is still very much live and well. Be sure y'all're providing cracking, seamless shopping experiences beyond channels. Call up: your shoppers should be able to find all of the information they need to brand smart purchase decisions — regardless of whether they're shopping online or in-shop.

Collect and brandish ratings and reviews.

Shoppers depend on reviews to make informed purchase decisions both online and in-shop. And 41% of dazzler shoppers rely on this content even more than at present than pre-COVID. This number is fifty-fifty higher among younger shoppers. Recency, quantity and star rating all matter — so exist sure to collect a steady stream of reviews on an ongoing basis. Finally, remember that reviews motivate iii-quarters of shoppers to try new beauty products. So if you're launching new products in the coming yr, consider sending out free samples in exchange for honest reviews.

Showcase visual content from your shoppers.

Dazzler products are highly personal. As such, shoppers want to see how a product works (or doesn't) for someone with similar characteristics. User-submitted photos and videos let them to do that. And over a 3rd of beauty shoppers are more reliant on user-submitted visual content now than they were pre-COVID. This number is even higher for younger shoppers. So be certain to collect and display photos and videos of your shoppers using your products "in real life." Collect this content both natively and where information technology already lives: on social media.

Empower online shoppers to enquire questions.

A third of shoppers (and an even greater number of younger shoppers) rely on Q&A more now than they did pre-COVID. If y'all don't have Q&A software on your product pages, at present's the fourth dimension to add it. It'll help shoppers brand smarter purchase decisions — which will pb to happier customers and fewer returns. Besides, consider allowing previous customers to answer shopper questions. Subsequently all, consumers trust the opinions of others like them!

Leverage everyday influencers.

Influencers accept the power to sway beauty shoppers. Simply over half of beauty shoppers consider the number of followers an influencer has to be irrelevant. And then think about means to leverage the micro-influencers who honey your brand and products. For case, send samples to these everyday influencers, and in commutation, ask them to write an honest review. Or, inquire them to post a photo of your product in action on their Instagram account — and then repurpose that content on your website.

Showcase your key differentiators.

Factors like cost and packaging are still important. Only today, a growing number of beauty shoppers also want to purchase products that align with their values. Specifically, we institute that many shoppers are actively seeking out products that are sustainably made and created by Black-endemic businesses.

If there's something unique nigh your brand or products, be sure to showcase it. Or if you lot're a dazzler retailer, make it easy for shoppers to find products that marshal to the things that affair about to them. For example, Ulta features sections on their website that make it easy for shoppers to observe products from Black-endemic brands — and those that are eco-friendly.

Source: https://www.powerreviews.com/insights/2021-beauty-industry-consumer-report/

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