According to a recent report from NielsenIQ, the pandemic-related boom in DIY self-care, plus the sharp rise in e-commerce caused the beauty and personal care segment to finish out 2020 with +16% dollar growth. Thus far, shoppers have been focusing on natural DIY beauty and we can expect them to continue to focus on eco-friendly and natural products as we move into a post-vaccine world. However, Hispanic and African American beauty consumers have been experimenting and spending substantially more than other racial segments, and we can expect multicultural consumers to continue to fuel cosmetics growth into 2021 as they look for products that enhance their natural beauty rather than mask it.

Key data points:

  • Beauty and personal care saw a 16% increase in dollar sales in 2020
  • Hispanic shoppers spent 13% more than average on beauty and personal care in 2020
  • Hispanic shoppers increased their overall beauty and personal care spend by 6.1% in 2020, compared to an average increase of 3.5%
  • Hispanic shoppers are 1.4x more likely to purchase lip cosmetics and artificial nails
  • Within the Hispanic segment, low-income shoppers (<$50,000) make up the largest portion of beauty buying households (38.8%) and dollars (39.6%)
  • According to NielsenIQ’s Summer COVID Survey (July 2020), 21% of Hispanics said they would seek more natural products in the near future vs. 11% of White shoppers
  • African American shoppers increased their overall beauty and personal care spend by 5.4% in 2020, compared to an average increase of 3.5%
  • African American shoppers are 2.4x more likely to purchase hair care treatments and 1.9x more likely to purchase hair styling products
  • Within the African American segment, low-income shoppers (<$50,000) make up the largest portion of beauty buying households (43.3%) and dollars (39.1%)
  • According to a survey conducted by NielsenIQ partner, Strategic Solutions International, 41% of African American women indicated that the COVID-19 crisis prompted changes to their hair styling and maintenance regimens
  • 39% of African Americans expect to purchase more products from Black-owned brands while another 29% plan to purchase from brands that have spoken about the Black Lives Matter movement

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