Amazon consumable report Q3: prestige products still fastest growers

By Lucy Whitehouse contact

- Last updated on GMT

Amazon consumable report Q3: prestige products still fastest growers

Related tags: Cosmetics

A new report on consumables retail via Amazon suggests high-end beauty brands are now turning to e-retail marketplaces to sell their prestige or premium products.

The report considers data from five core Western markets: the US, the UK, Germany, Canada and France. It breaks down Amazon’s consumables offering into four core product groups: Health & Personal Care, Grocery, Beauty and Pets.

Across all five countries, Health & Personal Care was the largest of the four product groups, accounting for more than a third of Amazon’s total consumables sales.

“Already experiencing steady double-digit growth, in the third quarter of 2017 Amazon’s sales of consumables ramped up significantly. As the grocery and health & personal care markets stagnate in the brick and mortar space, eCommerce sales pick up the slack​,” the report observes.

Amazon’s sales of consumables, including HPC​, Grocery​, Beauty​ and Pets, grew by an average of 80% across the US, UK, Germany, France and Canada, with the Beauty and Pets groups both doubling in size​.”

Beauty highlights

The report, by One Click Retail​, picks out the following highlights when it comes to the beauty industry:

  • Skin Care is the leading category in 4 out of the 5 countries surveyed
  • Prestige products were the fastest growers in both the U.K. and Germany and two of the major growth categories in the U.S. were Luxury Cosmetics (69% growth) and Luxury Skin Care (37% growth).
  • In Canada, Luxury Skin Care earned $300,000 in Q3, a far cry from the $25M earned by the category in the U.S. but more than double the sales over the same period in 2016.

Online sales of beauty products have always been a challenge. Traditionally, because the cosmetics industry relies so heavily on experiential retail, high-end brands would focus on specialized brick-and-mortar outlets and Amazon would only be a destination for inexpensive, mass market cosmetics​,” the report’s authors explain.

This remains a factor – in 4 out of 5 of our countries Skin Care is the leading category – but the tide finally seems to be turning.​”

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