MAC Cosmetics' public holiday sales Beauty sales declined as much as 30% in the first half of the year, according to McKinsey. Consumer behavior has shifted. Presently, along with women, there is a rise in use of cosmetics among men in their daily routine, which complements growth of the global cosmetics market demand. For instance, Aeroscena, which backs its scents with clinical research and also focuses on healthcare applications, has seen its fragrances used throughout select MGM Resorts in their wellness-focused Stay Well suites. Regional Insights. Increasing awareness toward personal grooming is accelerating market growth. As a Premium user you get access to background information and details about the release of this statistic. For brands, targeting multiple price points and diversifying product portfolios could help them weather periods of economic uncertainty. In-depth analysis of the cosmetics market segmentation assists to determine the prevailing market opportunities. The rising awareness toward personal grooming along with the expanding number of brands producing a wide range of cosmetic products is favoring market expansion. Companies going after the space will have to calibrate their messaging carefully and prioritize transparency to successfully engage customers while managing expectations. region: "na1", What will be the market value in the future? In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market growth. Consumers are wary of using products that contain harsh chemicals. Moreover, use of natural ingredients for manufacturing of cosmetics products, which does not have any adverse effect on skin, is a popular strategy of manufacturers to attract more customers. Share 14 Trends Changing The Face Of The Beauty Industry In 2021 on Facebook, Share 14 Trends Changing The Face Of The Beauty Industry In 2021 on Twitter, Share 14 Trends Changing The Face Of The Beauty Industry In 2021 on LinkedIn, Share 14 Trends Changing The Face Of The Beauty Industry In 2021 via Email, produce a sustainable alternative for palm oil, adopted biodegradable and recycled plastics more broadly, conditions of the pandemic drove them toward product categories like skincare, Perfect Diary has become one of the countrys most talked-about beauty brands, approach is already popular in Asia, but it has started to make inroads, virtual Shiseido store uses virtual reality (VR) technology, Did LOral overpay for Asop? Moreover, extensive use of color cosmetic products for eyes and lips can also cause many skin diseases and consequential health hazards. Today, MAC has opened the doors of its newest design concept. A Forrester study found that 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience, while Accenture found that 75% of consumers are more likely to make a purchase when recommendations are personalized to them, propelling the push for brands to personalize and differentiate offerings. In the US, personal care and beauty online sales totaled a whopping $62.6B last year, up from $53.1B in 2019. The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. Beauty conglomerate LOral (which set up the first beauty startup accelerator in Africa in 2018) offers a variety of internal initiatives to support its commitment to new brands and technologies, such as the Open Innovation Program, the Women in Digital program, its Technology Incubator, and the launch of corporate venture capital fund LOral BOLD. Based on our analysis, the global market exhibited a decline of 14% in 2020 as compared to 2019. A typical bottle of shampoo consists of 90% water, and shipping bulky, water-based products leads to substantial transportation costs, increased emissions, and more packaging. Use Ask Statista Research Service. Then you can access your favorite statistics via the star in the header. Many are addressing personalization with a variety of different technologies and approaches, such as: AI also presents a big opportunity for brands looking to further personalize processes, especially in areas like skincare analysis. Moreover, powdered contents are suitable for oily skin as they help absorb oily residue. Plus, keep in mind that roughly 70% of the clicks in Google go to the organic listings. Big beauty corporates are also attempting to penetrate new markets, especially in South Asia and Africa. The EU, for example, has a goal of becoming carbon neutral by 2050, and the European Green Deal aims to shift to completely reusable or recyclable packaging by 2030. The cosmetics market effecting factor are changing lifestyle and increasing demand for natural ingredients in cosmetic products. C PRO Student Program. Since Fenty Beautys launch in 2017, inclusive beauty has become an industry buzzword, encompassing new demographic markets that are becoming increasingly important for the beauty industry to target. Beauty trends come in cycles. Demand for these services is not limited by geography. Meanwhile, unicorn Zenoti, which raised $160M in Series D funding earlier this year, provides services management software for salons in over 50 countries. Myro and By Humankind allow users to refill deodorant, while Kjaer Weis and Asa Beauty allow consumers to restock makeup. According to perspective of top-level CXOs, innovation is the key for growth of the cosmetics market, in terms of value sales. Virtual try-ons are a key decision-making tool to assist with buying beauty products, especially makeup. The report includes analysis of regional as well as global cosmetics market trends, key players, market segments, application areas, and cosmetics market growth strategies. The Body Shop launched its refill stations globally in March 2021, allowing consumers to refill shower gels, hand soaps, shampoos, and conditioners in stores. With an ever-increasing percentage of the buyers journey happening online, beauty brands must have a clear digital marketing plan. This shift is accelerating as government regulation in the EU and select US states pushes CPG companies toward adopting more sustainable alternatives. Alll, for example, analyzes users genes through a DNA test to provide targeted skincare products. Youll also need to optimize your video for search so it shows up for the right keywords! Another emerging beauty-wellness area to monitor is functional fragrances scents purported to have effects like reducing stress. Ultimately, the beauty brands and retailers that will come out on top will be the ones that create a unified view of the consumers online and offline behavior. Certain powders also help to reduce the look of pores and fine lines. Read our deep dive into SEO vs SEM here for a more thorough comparison. Who are the major players operating in the market? Source: Alizila. Furthermore, China represents one of the fastest-growing markets for mens beauty and grooming products. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. In March 2021, beauty conglomerate Coty partnered with LanzaTech to leverage the biotech companys sustainable ethanol in its fragrances. Collectively, all strategies adopted by manufacturers drive the global cosmetics market. 2020 was a redefining year for every industry including beauty. after the death of one of the founding Franks, they bought the remaining share. Historically, the lions share of beauty products have been purchased in brick-and-mortar stores, but thats changing rapidly, with online sales projected to make up 48% of the total by 2023. Use of natural ingredients such as aloe vera, tea, and black sugar in cosmetics products reduce harmful effects of products, which drives growth of the cosmetics market globally. The partnership was named Best In-Store Technology Innovation in the beauty industry by Glossy. Custom printing, in which companies formulate products specifically for each user. (Clients can read more about independent and corporate-owned beauty accelerators and incubators here.). So, where do some of the top beauty brands and retailers rank in terms of organic search market share? These keywords span three vital markets, including skincare, makeup, and hair care. But its place in the beauty world is more secure than ever. Companies that sell clean beauty products can expect to see a surge in demand moving forward. Tech is playing a bigger and bigger role in the beauty industry. Zeesea similarly released eyeshadow palettes in collaboration with the British Museum, while Millet Pepper has focused on global expansion via selling on Amazon or through influencer marketing in Europe. The makeup category suffered losses, especially among teens, with Piper Jaffray reporting a 21% year-over-year decrease in spending among that group. Often, it can be cheaper to incubate or accelerate new companies (that could serve as potential partners or acquisitions down the line) instead of developing in-house brands. The top six market share holders for informational searches are publications. With the rise of social media and advanced data analysis, brands are able to deliver increasingly relevant and targeted messages to consumers. Others, including Glamsquad, send stylists directly to peoples homes or offices. Thank you!, I recommend Fortune Business Insights for their honesty and flexibility. Customers can also use technology throughout the store to get product information, digitally test items like skincare products, and find personalized recommendations by taking quizzes. This gives consumers the freedom to go home and research products and reviews online before making a purchase decision. The beauty category, while not recession-proof, has fared better than many other discretionary categories in economic downturns, reflecting the relatively low price point and the connection with the product Engagement with the beauty category remains strong, despite the uncertainty many guests are experiencing today. Ulta CEO Mary Dillon, Q120 earnings call. In Asia, mens skincare and makeup has been a burgeoning trend for years now, with the US catching up only fairly recently, which some attribute to quarantine boldness.. Beyond Fenty, a number of inclusion-focused brands like Mented Cosmetics, Urban Skin Rx, and Live Tinted have forged partnerships with larger retailers like Ulta Beauty, Target, and CVS to roll out their products nationally. Ultimately, the ingredient transparency trend will likely go more mass market and global across all consumer products. Beauty brands such as Unilever, Este Lauder, LOral, Glossier, and Clinique are nearly invisible in the non-branded organic search landscape across skincare, makeup, and hair care. A few brands are working to cater to older consumers, such as Gen Xers or baby boomers. Supply Chain Disruptions Due to the Pandemic Affected the Market Growth. . As the beauty industry becomes more tech-enabled, opportunities for big tech companies to monetize their data, platforms, and devices will only increase but, even as partnerships abound, they may eventually find themselves competing more directly with increasingly tech-savvy beauty incumbents. LOral has been a pioneer in social commerce through the years, including livestream shopping. To tap into this massive market, among others, grants and accelerators for founders of color have emerged over the past year, including Glossiers and LOrals grants to Black-owned businesses and Sephoras recent accelerator cohort, which included only founders of color. From virtual try-on features to AI-enabled skincare analysis to waterless beauty products, the pandemic has accelerated once fringe technologies. All prices in USD, To ensure high-level data integrity, accurate analysis, and impeccable forecasts, On-demand customization of scope of the report to exactly meet your needs, Targeted market view to provide pertinent information and save time of readers. T&C*. The global cosmetics market size was valued at $380.2 billion in 2019, and is projected to reach $463.5 billion by 2027, registering a CAGR of 5.3% from 2021 to 2027. The formulations of cosmetic products consist of numerous chemical constituents, including synthetic chemicals, coloring agents, sulfates, and others. For instance, in May 2021, Huda Beauty, a cosmetic brand headquartered in Dubai, UAE, announced the launch of its new cosmetic collection, GloWish. In addition, body positivity is a strong trend in the industry. Customers can book a wide variety of services that would typically require going to a specific location. LOral confirmed its position as the global beauty leader once again this year. Convergence of advancements, beauty, and lifestyle propels growth of the market. As a result, youll create a stronger bond between your brand and your customers. In doing so, the incumbent is diversifying its product portfolio and catering to new segments of shoppers whether they are seeking more affordable product lines, like The Ordinary, or more expensive ones, such as La Mer skincare, also owned by Este Lauder. Nowadays, self-care has become an integral part of a daily routine for a large number of individuals as it enables highlighting facial features such as eyes and lips and thereby provides an efficient method for grooming. Though customer demand and preferences will evolve as beauty standards do, the fundamental human desire to be attractive and achieve wellness through self-care will remain the same. What is the crucial factor driving the global market? Like many other categories, the pandemic has accelerated the beauty industrys shift to e-commerce as brick-and-mortar locations have had to close. Sephora is a good example, with its thriving Beauty Insider Community. Of course, depending on the competitiveness of the keyword, companies may have to pay a significant amount per click in order to earn the top sponsored spot. Traditional brands and beauty retailers are losing ground on product-related searches as well, when consumers are actively looking to purchase. However, the ultimate impact of these products will depend on how much consumers are willing to change their routines to adapt to these new formats, which may not be as convenient as traditional water-based products. When we zoom in on the skincare market (which includes lotions, creams, moisturizers, anti-aging serums, and cleansers), the top four performers are publishers rather than skincare brands. Rise in demand for various cosmetics products among customers makes way for manufacturers to come up with herbal or organic skin care products along with affordable prices and eco-friendly packaging. In December 2020, Google launched an AR-powered cosmetics try-on tool in Google Search, partnering with brands like LOral, Este Lauder, MAC Cosmetics, and more to let users try on searched-for makeup products using front-facing mobile phone cameras. Final Thoughts. Many beauty brands including Ulta Beauty, Bluemercury, and Sephora have begun offering curbside pickup to limit germ spread during the pandemic. In November 2020, Perfect Diarys parent company, Yatsen, debuted in a $617M IPO on the NYSE. Moreover, the need for cosmetic products among beauty professionals is projected to foster the demand for the entire market. Growth of the dermocosmetics market compared with the global beauty market., proportion of e-commerce in the beauty market compared with 14% in 2019. Based on distribution channel, the market is segregated into supermarkets & hypermarkets, exclusive brand stores, online/e-commerce channels, and others. Though theres been a lot of buzz around more effectively targeting people of color in the beauty sector, theres still much to be done. But there are no half-measures about Mr. Pinatels plans for MAC. With smart home concepts continuing to gain traction, beauty brands will have to consider how voice technology and partnerships with big tech could be used to address shopper pain points, from personalized recommendations to conveniently booking reservations. The beauty company opened its flagship store in July 2020 and launched a new virtual store on its website at the same time. As a result, brands are shifting focus away from highlighting natural ingredients and toward transparency and educating consumers on the ingredients they include or leave out. Ingredient transparency and nontoxic options will be crucial for this category to see sustained growth. How much is the global makeup market worth? The deal helped increase the company's product portfolio and added a rich skincare heritage to L'Oral's Consumer Products Division, offering a wide range of high-quality items. Propelling this growth were the 4.7 million non-prestige beauty shoppers who have begun purchasing in the prestige category. Key players focus on launching new facial skin easing products developed according to the need of different skin types, supporting the segmental growth. As more people research and purchase beauty products online, its critically important for brands in the cosmetics industry to seize the growing opportunity of organic search. Este Lauder, being the massive global beauty company it is, helped M.A.C grow even . Since then, Western shoppers have clamored for Korean beauty products, with items like sheet masks and snail cream becoming commonplace in beauty stores. We are happy with the professionalism of your in-house research team as well as the quality of your research reports. But consumers know that even minimal makeup is not a minimalist experience. LOral acquired a minority stake in Gjosa in March 2021. Brand representatives can also interact with group members, answering questions, addressing any problems that arise, and even getting feedback on various topics. The kiosks include 90 products across its four major categories beauty, bath & body, face, and hair. However, its hard to pin down an exact definition for clean beauty. Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. July 12, 2022. Social media strongly influences this generation, with attractive product promotions showcasing newer trends. LOral benefits from the strength and balance of its brand portfolio, which covers the entire skincare market: iconic brands with a comprehensive skincare offering, affordable brands with scientific and natural formulas. Asia Pacific and North America account for more than 70% of the total market size, The cosmetics industry has an annual growth rate of 4.75% worldwide, Global beauty industry revenue is expected to top $716 billion by 2025. Single User License, Five User License & Enterprise User License. China-based tech giant Alibaba offers livestreaming and AR features which it has used to attract luxury beauty brands to its e-commerce platform. The beauty industry has been awash with incubators in recent years. A. For instance, in August 2022, Ponds, a beauty brand from Unilever, a British consumer goods company, launched its natural glow face powder which is made from ingredients such as titanium dioxide and zinc oxide that have UV protection properties. For instance, in October 2022, Earth Rhythm announced its entry into the offline retail market with the launch of 12 kiosks in India's Tier 1 and Tier 2 cities, New Delhi, Chennai, Chandigarh, Raipur, Bangalore, Mumbai, and Dehradun. The global makeup market size was valued at USD 40.37 billion in 2021. Moreover, the cosmetics market across the globe has witnessed continues and sustained growth over years, owing to rise in beauty-conscious female population. Already, corporates are taking note. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information The COVID-induced lockdown restrictions have changed how we live and work. At The Innovation Lab, consumers no longer have to swatch foundation shades endlessly, checking in-store and outdoor light before making a purchase. On the basis of category, the market is divided into skin and sun care products, hair care products, deodorants & fragrances and makeup & color cosmetics. Remarkable job and great efforts by your research team. The global cosmetics market recovered markedly in 2021, rebounding to 2019 levels thanks to a very dynamic skincare category and growing digitalisation driven by the boom in e-commerce and social commerce. All Rights Reserved. As consumer values and expectations shifted, big beauty corporates and startups alike have been forced to adapt. These platforms typically include tools for booking and managing appointments, showcasing their work, and accepting payments. Ultimately, AR is no longer a gimmick, but a proven technology integral to beauty shoppers experiences, both online and in the store. Videos give people the opportunity to see a product in action, which is particularly important for cosmetics products. But, what is content marketing? Existing corporations have focused on growing brands founded by people of color to target disparities in traditional beauty products and cater to underserved markets.

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