Private-Label Beauty Products USA

Is Private-Label Beauty a Threat to Established Marketers?

With the continuous shift in consumer preferences, marketers and retailers are challenged to stay relevant in the beauty and personal care space. In recent years, an exciting development has been making inroads across all beauty channels: private-label beauty.

The private-label beauty segment has been advancing rapidly, as an increasing number of retailers such as QVC, Saks Off 5th, and Dollar General have entered this lucrative space. According to our recently published Cosmetics & Toiletries USA report, in 2018, private label climbs to the top 10 position in the beauty market in terms of annual sales, competing with giants such as Procter & Gamble and Johnson & Johnson. Moreover, these products advance almost 10% in 2018.

With the launch of notable retailer brands, such as Amazon’s Belei, as well as increased marketing efforts for in-house brands, this growth is expected to continue. Our new Private-Label Beauty Products: U.S. Market Assessment will explore opportunities in this burgeoning space, taking a deep dive into hot trends and developments, key product categories, main retailers and their private-label offerings, and forecasts for the next five years.

Private-label products are also becoming increasingly popular in the professional channel. Primarily sold through physicians’ offices, these products record double-digit gains in 2018, according to the U.S. volume of our Professional Skin Care Global study. The Professional Skin Care Private-label Products: Importance and Demand Survey report will examine the leading suppliers as well as the key growth drivers in this channel.

Existing trends such as marketplace retail for digital native brands continue to spread throughout the United States. Stores such as b8ta rotate brands monthly to stay on top of trends and noteworthy new brands entering the market. For many brands, these stores mark the first step to retail expansion, and as beauty products continue to be a fast-growing market, these retailers will look to expand their offerings.

Existing retailers are recognizing the challenge these marketplaces are posing to beauty and are beginning to place increased emphasis on highlighting indie brands that resonate with consumers. Ulta recently launched Sparked, a program designed to showcase brands new to the retailer with unique brand positioning and stories. To entice them away from traditional marketplace retailers, Ulta also assists these brands in establishing an image and scaling growth. We will discuss the trends impacting the U.S. beauty market and how retailers are responding in the next edition of our Beauty Retailing: U.S. Channel Analysis and Opportunities. This annual study analyzes all channels and sub-channels across all key product categories to reveal the latest sales and developments.

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