The rules of beauty shopping just got rewritten. The beauty industry is seeing a dramatic shift toward digital channels, with e-commerce positioned to capture nearly one-third of global beauty retail sales by 2030. This transformation marks the most significant change in beauty retail distribution since the era of department stores and is fundamentally changing how consumers discover, experience, and purchase beauty products.
E-Commerce Emerges as the Clear Winner
According to McKinsey’s latest State of Beauty 2025 report, online channels are expected to account for 31% of global beauty retail sales by 2030, up from only 10% in 2015. This remarkable growth positions e-commerce as the fastest-growing channel for beauty brands worldwide, with significant momentum over the last decade.
Kristi Weaver, Senior Partner at McKinsey & Company, and colleagues explain in their analysis that the projected growth for e-commerce is higher than all other global beauty sales channels. This leap signals more than just a change in shopping behaviors; it’s a complete reimagining of beauty retail.
The numbers clearly show the scale of this change: e-commerce beauty sales have tripled, rising from 15% in 2019 to 26% in 2024. Conversely, department stores have seen their share fall from 11% in 2015 to 8% in 2024, with further decline projected by 2030.
Traditional Retail Faces Increasing Pressure
Traditional retail channels are under significant pressure as e-commerce rises. Drugstores and pharmacies are forecasted to lose market share, dropping from 16% in 2015 to around 12% by 2030. Department stores, once leaders in beauty sales, are expected to shrink further as consumers shift more purchases online.
Yet, some physical retailers continue to perform well. Specialty retailers and mono-brand stores are maintaining their important 18-19% market share during this digital shift. Their strength stems from providing unique in-store experiences and services that connect with consumers in ways digital alone cannot.
The Forces Behind Beauty’s Digital Growth
Several factors are powering beauty’s new digital landscape. Increased internet access and smartphone use have made online shopping more accessible, with mobile devices leading visits to beauty sites. Social commerce has become a driving force, with platforms like TikTok now central to beauty shopping journeys, seamlessly connecting product discovery to purchase.
The pandemic considerably accelerated these trends, pushing brands to adapt quickly. Many industry analyses note that the pandemic acted as a catalyst for digital transformation, as beauty companies rapidly expanded into online sales channels. This change has become permanent, with digital shopping habits persisting long after the reopening of physical stores.
Technology Enhances Every Step
Innovation is going well beyond just putting products online. Augmented reality is now enabling virtual try-ons, so customers can preview colors and styles at home before buying. Artificial intelligence is behind increasingly personalized product recommendations and custom shade matching, helping consumers feel confident about their choices and narrowing the trust gap of buying beauty online. These innovations also speed up decision-making and enhance overall satisfaction, leading to higher retention and repeat purchase rates in the digital beauty sector.
Industry experts highlight that AI empowers brands to deliver truly personalized experiences, with new technology making it possible to tailor skincare suggestions and routines to individual users. AI further supports real-time feedback, helping brands optimize digital storefronts and respond rapidly to shifting consumer preferences.
Looking Ahead: A Digital-First Future
With beauty e-commerce expected to approach a third of all sales globally by the end of the decade, the industry is on course for sustained double-digit growth. This digital transformation is opening up new ways for brands and consumers to connect, from live online shopping events that blend entertainment and buying to virtual consultations powered by AI.
For beauty brands, digital transformation is now essential. Future growth will require robust and innovative digital strategies that create genuine engagement with consumers. By 2030, this evolution will have reshaped beauty retail entirely, with digital channels making beauty shopping more personalized, accessible, and engaging than ever before.
