Health and beauty to see 5% annual growth in 2021/26

The average household spent US$345 on health and beauty last year. 

Health and beauty retailers could see a compound annual growth rate of 5% in retail sales between 2021 and 2026, Euromonitor International reported. 

In its Top 100 Retailers in Asia 2022, Euromonitor said the brick-and-mortar channel remains resilient for health and beauty retailers in Asia where the average household spent US$345 last year. 

“These retailers have been more resilient during economic shocks than other store-based channels,” the report read in part. 

“Health and beauty retail was the only non-grocery channel that exhibited positive store-based sales growth in 2020. And this performance was sustained in 2021.”

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Health and beauty retailers have also improved their digital capabilities and brought focus on shoppable social media platforms to reach and attract more customers. 

“E-commerce continues to be a threat. But health and beauty consumers across Asia prefer individualised, one-on-one consultations and want to shop in-store to try products before making a purchase,” Euromonitor noted. 

In addition, the report said retailers should be particularly prepared to address the “extremely high expectations” of beauty consumers through innovations that personalise their in-store experience as well as offer a range of products and services.