Today : Mar 04, 2025
Business
03 March 2025

Trends Reshaping Beauty And E-commerce Markets In 2025

Shifting consumer behaviors are driving transformation across beauty, quick commerce, and fitness e-commerce industries.

The beauty industry, quick commerce, and fitness eCommerce sectors are undergoing transformative changes, presenting significant market trends as we approach 2025. These shifts are not merely fluctuations; they embody fundamental changes in consumer behavior, shopping methods, and market dynamics, all of which brands must navigate actively.

According to R.J. Hottovy, Head of Analytical Research at location analytics firm Placer.ai, the beauty industry has shown remarkable growth, particularly during 2022 and 2023. "Foot traffic to beauty retail stores grew faster than any other kind of retailer," Hottovy noted during the recent Coresight event. From 2021 to 2023, NielsenIQ reported steady annual growth of 6.8% for beauty product sales, reaffirming the market's resilience.

Yet, the winds of change are evident. Hottovy pointed out signs of decline, as in-person visits to U.S. beauty stores dipped by approximately 2% year-over-year during December 2024 and January 2025. This decline doesn't signify trouble; instead, it points to shifting shopping behavior. Over 41% of beauty and personal care product sales now occur online, with Amazon leading this e-commerce surge, highlighting the importance of adapting to new purchasing patterns.

The rise of social commerce is also noteworthy. Though currently encompassing only 6.2% of beauty sales, with TikTok representing 2.6%, these insights indicate lasting changes. NielsenIQ revealed, "Social commerce isn’t just about sales—it’s reshaping consumer psychology," with more than two-thirds of purchases driven by impulse. Remarkably, 84% of beauty shoppers reported positive experiences from social commerce platforms, showcasing their growing influence.

Meanwhile, beauty consumers increasingly favor independent, niche, and eco-friendly brands. While the top 10 beauty brands reported average growth of 2.2% during 2024, brands outside the top 20 grew by 6.9%. This growth reflects consumer values shifting, with 55% willing to pay more for sustainable beauty products. Aging brand loyalty, which has diminished by 20% over two years per NielsenIQ data, urges retailers to adapt to changing consumer preferences.

For brands and retailers to thrive today, agility is imperative. They must embrace social commerce, highlight independent brands, blend digital and physical shopping experiences, and prioritize sustainability. By adapting to these trends, businesses can maintain relevance and consumer loyalty.

Turning to the quick commerce (QC) sector, it is clear this domain is witnessing remarkable growth and evolution. Advertised revenue for QC platforms has reached approximately INR 30-35 billion, nearly half of Amazon India’s revenue stream. According to industry analytics, direct product searches account for 40% of searches on these platforms, emphasizing target-driven consumer behavior over broad category exploration.

Industry experts assert: "Higher shopping frequency on QC platforms compared to traditional e-commerce," showcasing unique purchasing habits. This QC model allows companies to convert immense growth through rapid delivery and marketing practices. Current estimates suggest Blinkit, Zepto, and Instamart, which dominate market shares, will see increasing ad revenue, providing them with leverage against traditional retail giants.

With the performance of e-commerce companies beginning to extend their reach within QC, Amazon and Flipkart’s movements highlight the fluid dynamics of market influence. Analysts warn of potential customer acquisition cost inflation due to this competition.

The fitness eCommerce industry is surging with expected growth at a CAGR of 7.83%, reaching USD 126.50 billion by 2028. This surge is majorly driven by increased demand for fitness equipment, healthy foods, and clothing spurred by the post-COVID era. Notable brands like Gymshark have successfully leveraged online-to-offline commerce by integrating their marketing efforts with customer engagement events, fostering community ties.

Successful fitness eCommerce firms are capitalizing on technology and audience data. For example, Fabletics utilizes customer data for inventory forecasting and personalized marketing, enhancing user engagement. The same goes for FITTR, which promotes personalized fitness plans through measurable progress tracking, fostering community and audience retention.

With the market's continued expansion, companies are advised to invest significantly in unique selling propositions and engage audiences with authentic, localized experiences. Successful eCommerce brands showcase the importance of responding fluidly to consumer expectations, prioritizing user-centric design, and sustainability.

Moving forward, adaptability and innovation remain the cornerstones of success for brands interacting with beauty, quick commerce, and fitness eCommerce industries. Understanding consumer preferences, utilizing data effectively, and engaging audiences across platforms will be pivotal strategies for capturing growth opportunities.