Beauty Industry & Logistics: Challenges, Solutions and Strategies

Key points:

• Selling beauty products internationally requires navigating two significant and country-specific legal hurdles: strict local packaging laws (regarding registration and materials) and complex regulations on product formulas and ingredients.
• The beauty industry experiences multiple distinct sales peaks throughout the year, including the end-of-year holidays, January (New Year's resolutions), Valentine's Day, and the back-to-school season, requiring robust logistical planning.
• Due to the consumable nature of beauty products, customer convenience is paramount. The article strongly recommends implementing subscription models to build loyalty and leveraging social commerce channels like TikTok for a seamless purchasing experience.
• The beauty sector is a large and stable market, with e-commerce accounting for 22% of the industry's $677 billion revenue. This stability, however, leads to fierce competition, making a high-quality customer experience and reliable logistics essential for success.

The beauty industry resides at the top of e-commerce. While it might not match consumer electronics, fashion or food, it remains a key figure—according to Shopify, it’s the 8th most popular e-commerce category worldwide, with its value estimated at almost $170 billion. Like any other e-commerce sector, beauty has its pros, cons and distinct challenges, especially when logistics are concerned. We discuss all of them in this article—we encourage you to read one to read on!

The Stable Growth in the Beauty Sector

Let’s first look at the beauty sector as a whole. According to Statista, it is estimated to generate a revenue of $677.19 billion in 2025. On the other hand, according to e-marketer, e-commerce is the largest sales channel for the beauty sector, with 22% of the revenue coming from it. Its CAGR? Between a steady 3.37% and a stunning 7.7%, depending on the source and the researched market.

This stable growth, along with the size of the industry, makes it alluring to operate in the beauty sector. It’s a safe option, especially for the larger e-commerce stores that want to expand into new markets and sell trade cross-border from the UK.

It’s also important to note that the cosmetics market is highly dynamic and open. It is defined by a wide variety of offerings and constant product launches. On the one hand, this creates opportunities—even new players have a chance to succeed. On the other hand, it presents a challenge—competition is fierce, so companies in the cosmetics industry must stay alert, continuously improve their products, and invest in innovation.

The Beauty Industry Supply Chain and Logistics

What does logistics look like in the beauty industry? And what challenges should you be prepared for? First and foremost, watch out for the legal landscape.

Packaging

The first of these challenges is.. is the local packaging laws. The EU, along with other countries and regions, might have their own regulations, with strict standards that require you to, for instance:
 

• register your packaging,
• use a certain percentage of recyclable materials,
• pay a packaging fee.

It’s a challenge, as you have to adjust to the specific market. However, at the same time, this prompts you to shrink your packaging size, which leads to direct cost savings on your international shipments.

Formulas

Every country or region has its own regulations regarding beauty product formulas. It’s easier if you send to a larger legal entity like the EU, but if you plan to enter multiple different markets, you have to research the specific legal requirements. It might be impossible to sell all of your products in a given market, or you might need to adjust the formulas.

You should also pay attention to the customs clearance requirements for your products. Unplanned delays due to a lack of compliance will slow down your deliveries and may hinder your business as a whole.

Sales Peaks

The popularity of the beauty industry brings logistical challenges during sales peaks, which are linked directly with certain periods and holidays. So, when can you expect a demand spike?
 

• End of the year—the end-of-year holiday season is a peak sales period across nearly every industry.
• New Year and January—many people make resolutions to take better care of themselves, leading to a second wave of increased demand right after the start of the new calendar year.
• Valentine’s Day—men often buy beauty products as gifts, which significantly boosts demand around mid-February.

Back-to-school season—the exact timing depends on the country you're selling in, but younger consumers often stock up on beauty before the school year begins. Face and eye care products are especially popular during this time.

Quality

As we mentioned before, the beauty industry is quite open, which creates an opportunity to fill the market but also increases competitiveness. Therefore, you need to ensure that you maintain the highest quality standards. Not only when it comes to your products, but also to logistics. To achieve success, you have to create the best customer experience possible, from the moment they enter your store to the moment they start using your product. This means:

• ensuring disruption-free, quick delivery,

• adhering to sustainability standards if they are a major deciding factor for the consumers in a given market,

• maintaining transparency, including direct delivery charges in your store,

• lowering delivery fees and providing your customers with a free delivery option,

• ensuring seamless returns management.

How to Overcome the Challenges in the Beauty Industry?

While all the above may be challenging, you can tackle these issues head-on with your e-commerce—all you need is a good strategy, adjusted to overcome the potential obstacles. So, what exactly should you focus on?

Reliable Deliveries

Firstly, you should opt for a logistics partner characterized by reliability. Timely delivery is a cornerstone of customer experience. Opt for Landmark Global—delivering parcels on time, every time is in our DNA.

Customer Convenience

Beauty products aren’t like other goods—they don’t last for years. That’s why shopping convenience is absolutely essential.

First, your website should be simple, fast, and allow customers to complete a purchase in just a few clicks. Second, offering personalized product recommendations helps shoppers find exactly what they need more quickly. Third, we highly recommend implementing subscription models—let customers choose how often they want to receive a given product, so they never have to worry about reordering. This also builds long-term loyalty.

Convenience also means choosing the right channels. In the beauty industry, the most powerful tool is… social media. That’s why it’s a great idea to enable purchases directly from your Instagram, Facebook, or TikTok profile. The last platform deserves a special mention, as it has a seamless purchase route, the whole of which takes place inside the app.

Adequate Marketing

Every detail matters—it’s the only way to stay ahead of the competition. That’s why strong marketing is essential.

Your e-commerce packaging should be visually appealing and ideally feature your brand’s logo. Collaborating with influencers can also boost your sales—and you don’t need to focus only on the biggest names. What’s important is that they highlight not just the quality of your products, but also the delivery experience. Show customers why your brand is the right choice; otherwise, they’ll simply forget about your products. In the beauty industry, quality alone isn’t enough.

In the cosmetics business and shipping internationally? Choose Landmark Global

At Landmark Global, we specialize in international logistics—both B2B and B2C. We’ll get your products to your customers, assist with customs clearance, and ensure everything arrives on time. Don’t wait—get in touch with us and let’s talk about your business.

References:

1. Shopify. (2024, February 15). Top online shopping categories: What people buy online in 2024. https://www.shopify.com/blog/top-online-shopping-categories

2. Statista. (2024). Beauty & personal care – global. https://www.statista.com/outlook/cmo/beauty-personal-care/worldwide

3. Lebow, S. (2023, July 5). 5 charts that make up beauty ecommerce. eMarketer. https://www.emarketer.com/content/5-charts-that-make-up-beauty-ecommerce