For brands working in the health & beauty categories, now is the time to double-down on new product lines and creative online promotions. Despite unpredictable tariffs and economic turmoil, NielsenIQ (NIQ) data found that consumers are actively buying personal care, fragrances, and other health and beauty products, and they’re seeking more inspiration.
A key finding from NIQ’s Health and Beauty Innovation Report is that in 2024, online sales of products in the health and beauty categories saw a nearly 18% jump in dollar sales. By comparison, in-store sales grew 1.6%.
Growth is growth, however, and when looking at nearly 25 specific categories in health and beauty, nearly all saw annual dollar increases led by fragrances (20%), sexual health (19%), and vitamins and supplements (14%). Brands and retailers are in a favorable position to generate more heat around their categories.
Line Extensions and Innovative Packaging Can Keep Growth Alive
Fueling the sales increases of health and beauty products at mass retail in 2024, the Health and Beauty Innovation Report found that brand innovation could be attributed to 9% of all sales. Leading the way among the growth tactics was line extensions.
In personal care, specifically, line extensions, new brand or sub-brand rollouts, as well as special collections, have added to how CPGs branched out their portfolios. Oral hygiene, deodorant, cosmetics, and bath and shower items were top categories fueled by innovation.
At the same time, while innovations, like new packages and formulations, can excite consumers and grow sales, brands can be at risk of cannibalization if incremental potential is not prioritized. NIQ data found that 1 in 4 innovations could result in shrinking the brand franchise.
Other trends tied to how brands have been innovating to increase sales include social media influence, personalization, and a focus on luxury.
Beauty Brands Should Inspire More Sales
Among the retailers growing fastest in the beauty and health categories, Amazon is leading the way with a nearly 25% dollar share of the market. The retailer saw a year-over-year dollar growth of 22%.
E-commerce is clearly becoming a channel of choice for health and beauty buyers. Brands need to take advantage of online deals and promotions—and continue to innovate to keep sales climbing.
Photo: Adobe Stock/ Jang (Generated with AI)
