The global beauty industry continued to gain momentum in the first half of 2023, with online sales up 15% year-over-year, according to the Admitad partner network.
The MENA region saw an even stronger increase in online beauty sales, with orders up 20% YoY. This growth was driven by a number of factors, including the increasing popularity of e-commerce in the region, the growing number of beauty brands with online stores, and the increasing use of coupons and cashback offers.
Admitad analyzed the sales of 450 brands worldwide and 185 MENA brands, including such well-known companies and marketplaces as Sephora, Alibaba, iHerb, Lancome, Yves Rocher, ICI Paris XL, BABOR, Loccitane, Clarins, Calvin Klein, and Kiehl’s. The calculations are based on more than 6.5 million orders worldwide and more than 400,000 orders in the MENA region, that were generated by network partners for beauty brands and retail sites.
MENA shoppers increasing their use of coupons
MENA residents are also increasingly using coupons when making beauty purchases. In 2023, they increased their use of coupons by 15%. This trend is likely to continue as shoppers look for ways to save money on their beauty products.
Influencers and content creators still driving sales
While coupons are becoming more popular, influencers and content creators are still driving sales for beauty brands. Their recommendations continue to generate a significant number of orders.
Marketers are adapting to changing trends
Marketers are adapting to the changing trends in the beauty industry. They are using a variety of channels to reach consumers, including Google contextual ads, messengers, and affiliate stores.
The mobile frenzy
The share of mobile sales in the global beauty industry in 2023 already stands at a staggering 46% and continues to grow (in 2022, the share of mobile sales was 44%).
For MENA’s beauty industry, mobile sales are still a growth point – in 2023, only about 25% of all beauty and self-care purchases were made from cell phones. The region is catching up with a global trend, and this is a great chance for local brands to compete for the growing mobile audience.
Forecasts are positive
Both global and MENA figures clearly indicate that online sales in the beauty industry will continue to grow. According to Admitad experts, 2023 may end even more positively for MENA beauty brands than the successful 2022. It is highly likely that the increase in their online sales for the entire year will reach up to 23%.
Businesses should pay attention to the most effective traffic sources and those customer acquisition channels that show growth or have the highest average order value. This approach will help them not to miss trends and increase not only the number of orders, but also improve other important business indicators.