Already experiencing steady double-digit growth, in the third quarter of 2017 Amazon’s sales of consumables ramped up significantly. As the grocery and health & personal care markets stagnate in the brick and mortar space, eCommerce sales pick up the slack. Amazon’s sales of consumables, including HPC, Grocery, Beauty and Pets, grew by an average of 80% across the US, UK, Germany, France and Canada, with the Beauty and Pets groups both doubling in size. As more brand manufacturers focus on Amazon as a sales channel and Amazon continues to make big investments in consumables, such as the recent purchase of Whole Foods, there is little doubt that this rapid growth will continue.

Amazon ConsumablesAmazon-International-consumables Sales-Data Q3 2017

Health & Personal Care

Q3 2017 Total Sales Growth

(change)

Top Category Top Selling Item Fastest Growing Category
US $990M 49%

(+9%)

Nutrition & Wellness Bounty Paper Towels – 12 Count Sex & Sensuality (89%)
UK £65M 46%

(+6%)

Nutrition & Food WaterWipes Baby Wipes – 12×60 Household Consumables (106%)
Germany €65M 62%

(N/A)

Nutrition & Food Pampers Baby Dry Diapers Size 5 Household Consumables (31%)
Canada $25M 108%

(+33%)

Baby Care Pampers Baby Dry Diapers Size 4 Household Consumables (184%)
France €20M 134%

(+70%)

Baby Care Pampers Baby Dry Diapers Size 4 Nutrition & Food (172%)

 

Across all five countries, Health & Personal Care was the largest of the four product groups, accounting for more than a third of Amazon’s total consumables sales. The largest growth rates again took place in the smaller markets of Canada and France. Still, in Amazon’s most developed markets – the U.S. and U.K. – growth continues to increase, rising from 30% in Q1 and 40% in Q2 in both countries to 49% and 46% respectively in Q3.Amazon-health personal care revenue-data-analysis Q3 2017

Though the top category in most countries is Nutrition, the leading items across all countries are diapers and paper products. This is in part because there is a very wide variety of vitamins and supplements available in Nutrition which keep the sales for individual items relatively low for such a strong category. While Baby Care and Nutrition remain the largest categories overall, the biggest growth drivers in Q3 were Household Consumables and, in the U.S., Sex & Sensuality.

Beauty

Q3 2017 Total Sales Growth

(change)

Top Category Top Selling Item Fastest Growing Category
US $405M 42%

(+2%)

Mass Skin Care Gillette Fusion Blade Refills – 12 Count Professional Salon & Spa (600%)
UK £30M 34%

(+4%)

Skin Care Foreo Luna Mini 2 Facial Cleansing Brush & Anti-Aging Skin Care Device Prestige Hair Care (142%)
Germany €35M 7%

(+2%)

Skin Care M2 Beauté Eyelash Activating Serum Prestige Skin Care (136%)
Canada $10M 152%

(+77%)

Mass Skin Care Proactiv 3-Step Acne Treatment System (60 day) Bath & Shower (194%)
France €5M 82%

(-17%)

Make-Up WUNDER2 Wunderbrow Sourcils Parfaits en 2 Minutes Fragrance (133%)

*Includes makeup and lotions, but excludes appliances such as hair dryers

Online sales of beauty products have always been a challenge. Traditionally, because the cosmetics industry relies so heavily on experiential retail, high-end brands would focus on specialized brick-and-mortar outlets and Amazon would only be a destination for inexpensive, mass market cosmetics. This remains a factor – in 4 out of 5 of our countries Skin Care is the leading category – but the tide finally seems to be turning. Prestige products were the fastest growers in both the U.K. and Germany and two of the major growth categories in the U.S. were Luxury Cosmetics (69% growth) and Luxury Skin Care (37% growth). In Canada, Luxury Skin Care earned $300,000 in Q3, a far cry from the $25M earned by the category in the U.S. but more than double the sales over the same period in 2016.Amazon-Beauty Products Data-International-Sales-2017

In the U.S., growth in this category can be chalked up to the arrival of two new brands to the marketplace: Amika and Davines. These two brands have driven the Professional Salon & Spa category to grow by 600%. Their combined 2017 sales so far already exceed the total category sales for all of 2016, mostly of them in the Salon & Spa Hair Care sub-category. Even when sales of existing items on Amazon fail to improve, the introduction of new brands and items can still attract new customers, as we can see in the Beauty product group where the total items available in the U.S. has increased from 1000 to 4000 since the end of 2016.

Grocery

Q3 2017 Total Sales Growth

(change)

Top Category Top Selling Item Fastest Growing Category
US $575M 93%

(+43%)

Cold Beverages The Original Donut Shop Regular Keurig Single-Serve K-Cup Pods Cold Beverages (72%)
UK £45M 65%

(-5%)

Beverages Tassimo Costa Americano 5×16 pods Pantry Grocery – Beverages (141%)
Germany €40M 45%

(+35%)

Spirits Hipp Bio Kindermilch ab 1 Jahr, 4×800 g Spirits (258%)
Canada $10M 124%

(+54%)

Coffee Soylent Meal Replacement Drink, Cacao, 12x414ml Cold Beverages (309%)
France €5M 167%

(+92%)

Beverages Danlee Huile de Coco Vierge 500 ml Baking Supplies (408%)

*Including Alcoholic Beverages and Amazon Fresh product groups

With Amazon Fresh, Amazon made a commitment to competing in the perishables space. In Q3 2017, Amazon Fresh generated $90M in sales in the U.S., consistently growing at an average of 3% per week during the quarter. Half of Fresh sales were split between dairy products and produce, followed by meat (including deli meats and seafood) with 18% of sales. The more recent purchase of Whole Foods is also bound to make a major impact on Amazon Grocery, but it’s still too early see a meaningful effect.Amazon-Grocery-Sales-Data international 2017

Coffee and Beverages remain the top categories across the board.  In all countries, many of the top items include coffee pods, with the Original Donut Shop climbing to the top spot in the U.S., beating leading competitor Tassimo. Soylent, a popular meal replacement drink, also populates the top ten in the U.S. and was the bestselling grocery item in Canada in Q3.

The major growth driver in the Germany and the U.K. was Spirits, placing as the top-selling category in Germany, where the three fastest-growing categories are all alcoholic beverages. In the U.K., Whiskey came in as the second-largest subcategory – though still only half the size of coffee – and Pantry Beverages also drove a great deal of sales as the country’s fastest growing Grocery category.

Pets

Q3 2017 Total Sales Growth

(change)

Top Category Top Selling Item Fastest Growing Category
US $430M 58% (+28%) Pet Food & Feeding Supplies Taste of the Wild Dry Dog Food, High Prairie Canine Formula Pet Food & Feeding Supplies (65%)
UK £40M 30%
(-10%)
Pet Food Lintbells YuMOVE Dog Joint Supplement for older dogs Health Care (140%)
Germany $35M 200% (N/A) Pet Food Cat’s Best 28441 Öko Plus Katzenstreu, 40 Liter Training & Behavior (314%)
Canada $5M 149% (+74%) Pet Food & Feeding Supplies AmazonBasics Dog Waste Bags with Leash Clip – 900-Count Health Care (121%)
France €10M 51% (+31%) Pet Food & Feeding Supplies Seresto Collier antiparasitaire pour grands chiens plus de 8 kg Pet Food & Feeding Supplies (78%)

 

Pet, a long-established product group, has always been driven by food. Consistent with Q2, Pet Food & Feeding Supplies continues to be the fastest-growing category in both the U.S. and France where it makes up two thirds of total product group sales, and Pet Food now ranks as the top category in all five countries. Bulk sizes of food and litter populate the top items, though accessories from private brand AmazonBasics make up two of the top three items in Canada.Amazon-international-Pet-Products-sales data 2017

Growth opportunities in the Pet product group are centered on two main areas: Health Care, which drove growth in Q3 across all countries and was the fastest-growing category in both the U.K. and Canada, and Organic Pet Food, which earned $2M in sales, a 180% increase over the same period in 2016. Pet owners today, an increasingly young and urban demographic, view their pets as members of the family and are therefore highly attentive to the health, diet and wellbeing of their pets.

In Q3 2017, the rate of growth in Amazon’s consumable sales has continued to rise. Emerging eCommerce categories, such as Spirits and Luxury Cosmetics, are capturing more of the buying public and brands adopting Amazon as a primary sales channel are experiencing great success. While the effect of Whole Foods on the Grocery product group will not be fully understood until our Q4 review, Amazon’s sales and growth in consumables is already a major success story.

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