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The ecommerce giant is making inroads in health and personal care, but it still faces an uphill battle in food and beverage, a coveted retail category that continues to grow online. This deck covers:. Amazon's US ecommerce sales forecast through 2027. Amazon's fastest- and slowest-growing product categories and the categories driving incremental sales growth.

Squatch, a men's personal care brand, created the most unexpected campaign by incorporating actress Sydney Sweeney's bath water into a limited-edition soap. "This campaign has everything," said Lebow. "It has men's personal care, a huge up-and-coming category crowded with direct-to-consumer brands (D2Cs) that need to find a way to stand out. It has a very relevant actress and it has controversy.".

Shop-till-you-drop: Before departing for trips, 88% of travelers will go shopping. 71% of Gen Zers plan to drop cash on apparel, 49% on footwear, and 45% on beauty and personal care items. But the spending doesn鈥檛 stop there: 61% of Gen Zers also anticipate shopping during their trips. Comparatively, only 57% of Millennials and Gen Xers and 53% of Boomers plan to partake in retail therapy.

Beauty and personal care sales on TikTok Shop totaled $1.06 billion from September 2023 to September 2024, according to Charm.io data cited by Practical Ecommerce, nearly double the next highest-grossing category. Beauty and personal care accounted for 22.5% of TikTok Shop鈥檚 gross merchandise value (GMV) as of November 2024, per AfterShip data. TikTok leads social platforms for beauty purchases.

Men are spending more on beauty and personal care. Over half (52%) of men use facial skincare products, according to a July 2024 Mintel survey. Interest in other categories is also rising: For instance, 53% of male teens report wearing a fragrance daily, up 10 percentage points YoY, per Piper Sandler.

The moves: Est茅e Lauder is far from the only beauty company to sense opportunity in India鈥檚 $28 billion beauty and personal care market. Over two dozen major global brands, including Fenty, Nars Cosmetics, and Rare Beauty, have launched in the country over the past two years, all vying to attract spending from India鈥檚 growing middle-class and affluent consumers.

Health and personal care will drive growth but won鈥檛 be enough to improve Amazon鈥檚 share of the overall US ecommerce market.

Amazon and Walmart scoop up beauty sales as shoppers search for convenience: Our Industry KPIs data shows that the two account for the majority of purchase intent clicks in the beauty and personal care category.

Amazon鈥檚 ever-faster Prime delivery speeds paid off in Q3, with more shoppers purchasing everyday essentials like personal care items and nonperishable goods. 鈥淲hen customers purchase these types of items from us, they build bigger baskets, shop more frequently, and spend more on Amazon,鈥� CFO Brian Olsavsky said on the company鈥檚 Q3 earnings call.

Among US beauty shoppers of all ages, beauty and personal care shoppers are most likely to buy in-stores.

While retail sales growth is expected to slow this year, ecommerce sales will grow by double digits to reach $1.148 trillion, buoyed by online grocery, health and personal care, and online resale. Here are five charts on the categories, retailers, and channels driving ecommerce growth

Amazon will gain the most share in health and personal care.

Gen Z women trust beauty influencers: Roughly eight in 10 Gen Z women shop for creators鈥� beauty and personal care recommendations.

Amazon will increase its share of US ecommerce sales in five product categories next year, per our forecast. The biggest gains will be in health and personal care, furniture and home furnishings, and apparel and accessories.

The future of ecommerce is grocery. Historically, three categories led the US ecommerce market: apparel and accessories, computer and consumer electronics, and furniture and home furnishings. But in recent years, growth has been fueled by essential goods, including food and beverage items, personal care products, and household supplies. This shift will take grocery to the top of the four major ecommerce categories by 2026.

Motor vehicle and parts dealer sales; furniture sales; electronics and appliance sales; building material and garden equipment sales; food and beverage sales; health and personal care sales; gasoline sales; clothing and clothing accessories sales; sporting goods, hobby, book, and physical music sales; general merchandise sales; miscellaneous sales; nonstore sales (i.e., pure-play ecommerce platform sales

The strategy: By guaranteeing Prime members fast, reliable delivery, Amazon is winning ecommerce share in everyday essentials such as health and personal care. Everyday essentials is the retailer鈥檚 fastest-growing category as consumers feel confident their toilet paper will arrive the same or next day after they placed their order.

With online penetration in 2025 at 30.8%, textiles, clothing, and footwear outpaces other major categories, including health/personal care/beauty (20.6%) and food and beverage (10.0%), per our forecast. Only computer and telecoms equipment (38.2%) and household goods (30.2%) achieve comparable digital adoption rates. Digital penetration has plateaued, establishing a new baseline.

Amazon鈥檚 relentless focus on delivery speed drove ecommerce share in essential categories like health and personal care. In the US, the company delivered over 2 billion essential items within a day of being ordered, up 50% YoY, as faster speeds lead shoppers to order more, and more frequently.

Food and beverage will top overall holiday retail sales growth for the third consecutive year (+10.0%), followed by health and personal care (+6.6%) and apparel, footwear, and accessories (+6.6%). Just about every other top-line category in our forecast will see below-average holiday sales growth. The one exception is computer and consumer electronics (+6.1%).