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Online Perfume and Cosmetic Sales in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Oct 11, 2014, 12:00 ET

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As disposable incomes increase, the industry will reach out to underrepresented markets.

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New York, NY (PRWEB) October 11, 2014 -- The Online Perfume and Cosmetic Sales industry has expanded rapidly to total an estimated $1.6 billion in 2014. “While the recession ravaged most of the United States' retail sector, operators benefited from bargain-seeking consumers who opted to compare product prices on the internet,” according to IBISWorld Industry Analyst Brittany Carter. Demand has accelerated benefiting from the economic recovery and improved disposable income, with anticipated double-digit annualized revenue growth of 12.8% over the five years to 2014. While market saturation is expected to slow growth, the industry will continue to outpace the overall economy, with revenue rising 8.4% in 2014 alone.

Shifting consumer purchasing patterns have bolstered industry performance over the past five years. As more consumers opted to purchase items online, demand has soared. “The growing prevalence of broadband and mobile connections have underpinned changing consumer habits by facilitating the ease of online shopping and allowing consumers to quickly compare prices among retailers,” says Carter. Price-based competition among industry players, however, has intensified as an increasing number of players enter the industry. As a result, profit gains following the recession have been limited despite improved demand for high-margin luxury products.

Industry products have also expanded to reach previously underserved demographics, such as consumers under the age of 25 and male shoppers. These segments have grown strongly over the past five years as cosmetic manufacturers tailor products specifically to them. This trend is anticipated to continue over the five years to 2019 and will bolster industry growth throughout the period. Innovative and exclusive product launches will be essential to maintaining profitability as new players continue to enter the industry.
The rebounding economy, which will translate to higher disposable incomes and less available time to shop, will represent the largest driver for industry growth over the next five years. Per capita disposable income is expected to increase, enabling consumers to buy higher-value products in greater volumes. Furthermore, increased mobile internet connectivity will allow shoppers to make purchases on the go, further strengthening the industry's performance. In the five years to 2019, IBISWorld projects revenue will grow.

For more information, visit IBISWorld’s Online Perfume and Cosmetic Sales in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Online Perfume and Cosmetic Sales industry comprises companies that sell perfume, makeup and other cosmetic products online. This industry includes revenue generated online by brick-and-mortar stores.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]

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