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Amazon to Overtake Walmart in Beauty

Amazon will make up about 14.5 percent of a market that could hit $180 billion in value by 2025, followed by the Bentonville, Arkansas-based retailer at about 13 percent.
Shelves of products in a beauty salon
Amazon is set to overtake Walmart Inc. as the biggest US beauty retailer by 2025. (Shutterstock)

From books to cloud computing, Amazon Inc. has gone on to dominate many segments over the years. Now Morgan Stanley projects that the e-commerce giant will become the biggest player in another space: beauty.

Amazon is set to overtake Walmart Inc. as the biggest US beauty retailer by 2025, analysts led by Simeon Gutman wrote in a research note. Amazon will make up about 14.5 percent of a market that could hit $180 billion in value by 2025, followed by the Bentonville, Arkansas-based retailer at about 13 percent.

While grocery retailers still hold a leading share of about 29 percent of the US beauty market, their portion has shrunk over time with specialist retailers like Ulta Beauty Inc. and Sephora among the biggest beneficiaries.

Amazon’s gains are set to come as the company continues to grow its share in the e-commerce market, set to account for 46.5 percent of it by 2025, Gutman wrote in the note.

Amazon gained 0.6 percent on Tuesday, while Walmart slipped less than 1 percent. Amazon shares, which lost nearly half their value last year as routs ravaged technology and growth stocks, have rebounded this year to rise 50 percent. Meanwhile, Walmart shares have seen a relatively steadier growth curve over the past five years, and the stock is up 9.3 percent in 2023.

By Subrat Patnaik

Learn more:

Why Amazon’s Latest Beauty Venture Is About More Than Sales

This week, Amazon-owned Shopbop became the third high-end fashion e-tailer this year to get into beauty. The goal may be more about drawing people to the site than becoming a powerhouse in the category.


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