According to data from Accenture, during the year 2023, the global beauty market reached $600 billion, apparently presenting growing trend. In the next three years, the beauty & personal care industry is anticipated to continue a 10% steady growth per year, the general revenue size will reach $694 billion in 2025.
EchoTik’s research suggests that beauty & personal care is the best-selling and fastest-growing category in the TikTok E-commerce market. From July to September 2023, GMV of 6 countries in Southeast Asian market accounts for over 22% of global market, while that of United States reached 34%. Thanks to its large daily active user base, a high proportion of female users, and impressive purchasing power, TikTok provides broader development opportunities for brands, a batch of new trends has also emerged in the beauty & personal care market.
Based on this fact, the third-party TikTok data analysis platform, EchoTik, has published the "TikTok Beauty&Personal Care Industry Trend Report”. Based on concise analysis and interpretation of the data from the beauty& personal care categories in the 6 countries of Southeast Asian and the emerging seven major markets in the United States, the report includes multiple perspectives such as target market size, price range, best-selling products, and brand marketing cases. It aims to help users gain a deeper understanding of the beauty&personal care market break down in regions, thereby clarifying product selection directions and marketing methods.
1 Analysis of 6 countries in Southeast Asia
Data collection period: August-September 2023 30 days data
01 Beauty & care category leads the Southeast Asia market
In the 6 Southeast Asian countries, beauty & personal care is the category with highest GMV in terms of orders. The average proportion in Southeast Asia market is 22.69%, with Singapore being the highest (nearly 30%).
02 Thailand has the fastest growing market featuring high ATV
The beauty & personal care market in Thailand is growing the fastest among all 6 countries, registering the highest number of orders in August. The GMV for August 2023 exceeded $70 million, which is 1.43 times greater than the second best-selling Indonesia market. The average ATV in Thailand is also the highest among developing Southeast Asian countries ($9).
03 Low-priced items dominate the market in developing countries, Singapore is suitable for promoting high ATV, branded products.
According to the distribution of item prices, in the 5 Southeast Asian countries other than Singapore, beauty & personal care products are dominated by low-priced items with a price range of $1-5, followed by items priced at $5-10. However, in Singapore, the beauty & personal care products with highest GMV have a price range above $20.
04 Malaysia/Vietnam/Thailand are potential consumer markets for brand upgrades.
In Malaysia, Vietnam, and Thailand, the quantity of medium-to-low priced items ($10-20 and above) is relatively high. Moreover, their per capita GDP is higher compared to Indonesia and the Philippines, making them potential markets for higher ATV products and brand upgrades in the future.
05 Top-selling stores include multiple strong competitors and one dominant competitor, resulting higher entry barrier for Chinese beauty brands
Leading Chinese beauty & personal care brands including SKINTIFIC, The Originote, and MeToo, have been long-standing top sellers in the markets of multiple countries due to their early entry into the Southeast Asian market and strong capital base, have a high overall market share. The challenge for Chinese beauty & personal care white labels to continuously dominate the market has increased, testing their ability for domestic brand adaptation.
2 Analysis of market in the United States
Data collection period: July-September 2023
01 GMV Growth in August exceeds 270%, beauty & personal care market skyrocketing in the US
According to EchoTik data, TikTok's estimated sales (GMV) for beauty & personal care surged rapidly. In August, there was an increase of more than 270% compared to July, ranking first in category GMV with a market share of about 34%.
02 Just like SHEIN, TikTok Shop market in the North American is anticipated future growth and vast possibilities
In August 2023, the total monthly GMV for TikTok Shop in the US reached $67.3 million, with a daily average GMV exceeding $2.2 million (note: the weekly average in September has already surpassed $3.4 million/day). Compared to the domestic e-commerce platform rival, SHEIN, its GMV in 2022 was as high as $30 billion. Therefore, TikTok Shop in the North American market has strong growth potential and vast future possibilities to be explored.
03 TikTok E-commerce still faces significant challenges in North America and may open the landscape of mobile social e-commerce
According to Statista, Amazon dominates the North American e-commerce market, holding a 37.8% share in 2022, Walmart with second largest market only has a 6.3% share, quite different from the balanced competition circumstance of e-commerce market in Southeast Asia. In North America, 44.8% of e-commerce users tend to search with desktop rather than mobile. Thus, as TikTok expands in North America, it faces not only domestic and international competition but also the challenge of shifting consumer habits from desktop to mobile.
04 Overall strong purchasing power with a large premium potential
According to the price distribution of TikTok beauty & personal care products, items priced over $20 have the highest share in terms of quantity, sales volume, and revenue, followed by products priced between $10 to $20. The average price is $21.4. The purchasing decisions of the lower- and middle-income consumers are more price-sensitive, while those with higher incomes rely more on product value.
05 Best-selling stores mainly comprise small and medium DTC brands and white labels, reflecting a diverse trend in niche markets
Looking at the categories of stores, the beauty & personal care market in North America is generally more mature, with users having more specific demands, leading to a diverse landscape. Not only makeup and skincare but also haircare, dental beauty, and Middle Eastern fragrances are on the best-selling list. Among the Top 10 US stores in the past 30 days, DTC brands generated more orders. Brands like The Beachwaver and MySmileUS already had certain market recognition and brand trust before joining the TikTok Shop. Other top stores mainly sell white-label products.
06 The younger generation is the main target audience, tend to be influenced by social media
According to Feedvisor's "2023 US E-commerce Market Insight Report", 52% of US consumers have shopped via social platforms in the past 6 months. Generation Z (born between 1995 and 2009) and Millennials (born between 1981 and 1996) are more likely to discover independent brands through social media. Beauty & personal care products, along with clothing, are the most commonly ordered categories through social media channels.
07 International beauty brands tend to join TikTok shops recently
According to reports, TikTok has indicated that several internationally renowned beauty & personal care brands including L'Oréal, Benefit, Olay, and more. have either joined or are planning to join TikTok Shop. The inclusion of these brands will change the landscape of TikTok's beauty and personal care market, attracting an even larger consumer base.
3 Conclusions And Suggestions
The overall market is steadily growing, with niche categories awaiting exploration. Platform model reforms will force more beauty & personal care sellers to abandon the low ATV market, focusing more on branding and differentiation in operations.
Southeast Asia Insights
The overall market growth is slowing down, domestic operations are becoming the trend. Brand upgrades may become the next step, and long-term operation is the key.
The market is skyrocketing, small and medium DTC brands, as well as white labels, are entering a period of growth dividends. The market is mature, with diverse users in terms of ethnics, leading to segmented demands.