Ecommerce worldwide is at its sweetest spot for finding opportunities. The cosmetics and beauty sector is booming in Europe and in Spain too.
Europe: where the cosmetics and beauty industry can grow
In Europe, the cosmetics and beauty sector generated €86,218M in 2017, with a compound annual growth rate of 5% between 2004 and 2017 — a very powerful, constantly growing sector.
Here’s what European consumers think about cosmetics and personal care products:
- 80% of Europeans see cosmetics and personal care products as important or very important for their self-esteem.
- 72% of Europeans say these products improve their quality of life.
- 71% of Europeans consider cosmetics and personal care products important or very important in their daily lives.
In short, the sector offers products that matter for self-esteem, quality of life and everyday living. Products that, from a practical standpoint, are essential for most consumers.
Spain: a country with potential in Europe’s cosmetics and beauty industry
Spain is the fifth-largest country in the European Union by sales volume, behind Germany, the United Kingdom, France and Italy, which lead in that order.
In 2017, Spain closed with €6,820M in revenue in the cosmetics and beauty sector, with annual growth above 2.2%. Fragrance products grew the most, rising by more than 5.4%.
70% of Spanish women think personal care is very, very important. On average they spend €25 a month on cosmetics, and 47% buy cosmetic products several times a month.
It’s not just Spanish women who care about their looks: 54% of Spanish men do too. Notably, the biggest sales increase came in the selective channel, and 90% of men choose this channel for buying high-end perfumes and fragrances.
The online channel is key
One of the biggest trends in the online channel is the growing interest in influencers and KOLs (Key Opinion Leaders).
The following figures show this:
- 80% of internet users check user reviews on social media before buying online.
- 85% of internet users follow influencers on social media.
- More than 95% of beauty videos uploaded to YouTube are made by influencers, not brands.
- 90% of conversations about beauty products take place on social media.
This confirms how important influencers have become in this sector, along with social media interaction.
“ Ecommerce isn’t the cherry on the cake, it becomes the new cake ”
Says Jean-Paul Agon, CEO of L’Oréal Group
Overall, the online channel grew by more than 35% last year. That means more than 45% of purchases were made online. In the cosmetics and beauty sector, online purchases broke down as follows: 35% fragrance, 20% beauty products and 45% other products in the sector. So far this year, 58% of women have already bought cosmetics online.
There’s a clear upward trend in buying cosmetics and beauty products online. That’s why it’s important — and very worthwhile — to have an eCommerce adapted to customers’ new ways of shopping and to new market trends.
At TLG Commerce we specialize in building online stores. Ask us for more details. We’ll help you with your project!
