Amazon to Outsell Boots in Health and Beauty Sales by 2026

If your brand operates in the health and beauty space, you're likely in the process of completely overhauling your current sales strategy. If that statement seems unfamiliar or inaccurate, there's probably cause for concern. 

While today you might do the bulk of your sales via retailers with a portfolio of physical stores, that's all about to change. Over the next five years, Amazon is set to become the largest health and beauty retailer in the UK, leaving Boots, Tesco, and other current leaders in the market behind. 

Self-care is going online; and to Amazon in particular. If brands don't move to follow suit, they'll find themselves at a massive disadvantage. In just five years, current roles will be reversed, with Amazon acting as the leading retailer for self-care and brick-and-mortar stores falling further and further behind. 

So what does the data say, and how significant is this upcoming paradigm shift for health and beauty brands? 

How Amazon is Set to Dominate the Health and Beauty Space in Just Five Years

While Amazon is no stranger to enjoying explosive growth in specific market segments, the latest data suggests health and beauty are next on the list for the e-commerce giant.  

According to industry research conducted by Ascential, sales of health and beauty products on Amazon will grow by 57.5% over the next five years. By contrast, UK store sales will grow by just 4.1% over the same period. The figures suggest that the Walgreens Boots Alliance will actually lose gross sales volume in the same period, whereas the current second-place retailer, Tesco, will remain static. 

In essence, while health and beauty shoppers have historically been described as digital laggards, the industry is undergoing seismic change into an online-first market. 

The advent of the pandemic brought about this change to typical retail habits. When physical brick-and-mortar locations had to close, customers had no choice but to move online for their over-the-counter medication and beauty products. 

While trading has somewhat returned to normal, the shift in consumer behaviour is permanent.

What Do the Figures Mean for Health and Beauty Brands Moving Forward?

In short, brands not performing well on Amazon will be challenged by platform-savvy competitors, who can offer better listings, a more extensive selection of products and bundles, and best-in-class customer service through the eradication of unauthorised sellers. 

Conversely, those investing in developing their Amazon sales channel today will also gain access to beta and early-access product releases that can transform their brand protection and advertising performance. By contrast, brands still reliant on distribution to physical stores will find growth hard to come by. 

As a brand in this space, a slow reaction to this impending new world order will likely result in a significant loss of market share.

How Can Brands Leverage Amazon's Explosive Health and Beauty Growth to Get Ahead?

There are several elements to successfully riding the wave of Amazon's health and beauty growth. From shoring up leaky distribution channels to taking advantage of both the first-party (1P) vendor and third-party (3P) seller models, brands need to be proactive to get ahead of the competition.

If you're concerned about your brand's preparedness for this new health and beauty landscape, we are here to help. 

At World Products, we are helping brands maximise the opportunity presented by Amazon's explosive health and beauty growth. Our trademark Amazon Marketplace Strategy ensures that brands better protect, deliver, and grow on the world's leading e-commerce platform.

So why not book a free Amazon Growth Audit with our expert team today to discuss any issues you're experiencing with your amazon performance? Click here to choose a time and date that works best for you.