With this technology, customers can try on hair colour and makeup products realistically and in real time, or obtain a skin analysis and personalised skincare routine. Beauty industry statistics, market share, and worth 70% Asia Pacific and North America account for more than 70% of the total market size Common Thread 4.75% The cosmetics industry has an annual growth rate of 4.75% worldwide Common Thread $716B Global beauty industry revenue is expected to top $716 billion by 2025 Common Thread Since Unilevers $1B acquisition of Dollar Shave Club in 2016, M&A of mens personal care brands has spiked, with deals including: D2C brands targeting mens personal care like Bevel, Lumin, Huron, Scotch Porter, Stryx, Hawthorne, and more have all reported growth in 2020, according to WWD. Many of todays brands, such as Stryx, Shakeup Cosmetics, and War Paint, are employing D2C distribution and refreshed packaging to attract a new generation of male consumers. At checkout, customers scan their wristbands and receive their items immediately. Who are the leading players in the global market? We value them as a research company worthy of building long-term relationships., Well done Fortune Business Insights! Why do they outrank the biggest beauty brands? Global Cosmetics Market is estimated to be valued at USD 380.2 Billion in 2021 to USD 465.0 Billion by 2026 with a CAGR value of 5.5% from 2021 to 2026. 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. 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. Even major brands took a hit: Coty (owner of CoverGirl and Rimmel) saw its share price drop 52% at the end of March, while Ulta Beautys stock saw a 29% decline though both have since bounced back as the US beauty market is expected to recover and reach pre-pandemic levels in 2021. 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. Consumers especially millennials and Gen Zers are leading the shift away from single-use plastic. In this report, we look at the latest innovations across every part of the beauty space and highlight the top industry trends to watch in 2021 and beyond. Urban which connects users with skincare professionals, nail specialists, and more is headquartered in England. At the MAC Innovation Lab in Queens Center, customers will have the opportunity to customize their own palettes, personalize product packaging, and virtually try on makeup shades or even entire looks created by MAC makeup artists. The market is projected to grow from USD 41.85 billion in 2022 to USD 61.34 billion by 2029, exhibiting a CAGR of 5.61% during the forecast period. Clean beauty is another business growth area within the beauty industry to watch. In 2022, the global cosmetics market experienced growth of over 16 percent in comparison to the previous year. Moreover, online sales channel has increased consumer reach, making it key source of revenue for many companies. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the cosmetics market players. Customers are increasingly demanding greater insight into what their products are made of, and ingredient transparency has become a top priority not only for beauty and personal care brands but also for CPG and retail companies more broadly. A. 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. Soothe connects customers with on-demand massage therapists who offer deep tissue, sports, and prenatal massages, among others. Meanwhile, Coral is creating a fully automated device that provides at-home manicures. On the basis of gender, the women segment led, in terms of the cosmetics market size in 2019, and is expected to continue to grow with robust CAGR during the cosmetics market forecast period. Another emerging beauty-wellness area to monitor is functional fragrances scents purported to have effects like reducing stress. The global COVID-19 pandemic has been unprecedented and staggering, with makeup experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Virtual try-on is also available on the Kiko Milano website. Custom printing, in which companies formulate products specifically for each user. Existing corporations have focused on growing brands founded by people of color to target disparities in traditional beauty products and cater to underserved markets. Brand representatives can also interact with group members, answering questions, addressing any problems that arise, and even getting feedback on various topics. One powerful trend in influencer marketing is brands building an influencer team. But, in recent years, cosmetic brands have become more inclusive, dramatically expanding color options. During recessions and economic downturns like the Covid-19 crisis, beauty tends to be a resilient category due to whats known as the lipstick effect consumers tendency to see beauty as an affordable, small luxury during uncertain economic times. The positive stance of the producers in the region supported by short term loans provided by the government along with other facilities, are raising the product demand in these regions. The emerging glamor industry is boosting the demand for various skincare products among the young generation that can alter their appearance. Pre-assembled Student Kits are available to purchase through Customer Service . Cosmetics products manufacturers are switching their preference to produce hand sanitizers, cleaning agents, and personal care products, which have been gaining major demand during this pandemic. The partnership was named Best In-Store Technology Innovation in the beauty industry by Glossy. Sephora, for instance, partnered with Google to offer its own Google Assistant app that allows users to order products, access skincare advice, and view Sephoras YouTube videos. A few brands are working to cater to older consumers, such as Gen Xers or baby boomers. To know how our report can help streamline your business, Speak to Analyst, High Absorbing Features of Powder to Trigger Demand for Powder Segment. Ultimately, AR is no longer a gimmick, but a proven technology integral to beauty shoppers experiences, both online and in the store. Hence, such changing lifestyles, have led to growth of the global cosmetics market. Source: Codex Beauty. 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. C PRO Student Program. Chanel first launched Boy de Chanel in South Korea, while Shiseido said its male makeup line saw double-digit growth amid the pandemic, bolstered by Japanese businessmen in their 40s. Moreover, the cosmetics market across the globe has witnessed continues and sustained growth over years, owing to rise in beauty-conscious female population. Virtual try-ons are a key decision-making tool to assist with buying beauty products, especially makeup. While some consumers saw an increase in their disposable income during the pandemic, for many shoppers, the economic uncertainty of the pandemic has driven a renewed focus on products that carry more value at cheaper price points. The market is projected to grow from USD 41.85 billion in 2022 to USD 61.34 billion by 2029, exhibiting a CAGR of 5.61% during the forecast period. The dermocosmetics market 2020 The only cosmetics market that recorded growth in 2020. . I appreciate the timeliness and responsiveness of you and your team., (applicable to 1 report only for the same license type). Gender-neutral makeup lines are the next step in inclusive beauty, as younger generations erode traditional gender norms and stigmas. Itll be a lasting trend. Demand for these services is not limited by geography. Rising Awareness Regarding Adverse Effects of Chemical Formulations to Hamper Product Sales. The rising awareness toward personal grooming along with the expanding number of brands producing a wide range of cosmetic products is favoring market expansion. portalId: "763793", We had a seven-year cycle of high-glam makeup, and currently minimal no-makeup makeup is having a moment. Social media strongly influences this generation, with attractive product promotions showcasing newer trends. Currently, you are using a shared account. With an ever-increasing percentage of the buyers journey happening online, beauty brands must have a clear digital marketing plan. The global cosmetics market size was valued at USD 262.21 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030. For example, Hims & Hers offers telehealth consultations and prescriptions for a broad array of health issues ranging from infections to mental health, but its services also extend to anti-aging creams and haircare products. The coronavirus crisis has acted as a catalyst in the adoption of augmented and virtual reality to facilitate the shopping experience: 20% of retailers in the United States now want to offer virtual try-ons, compared with 8% before the crisis. Clean, gender-neutral fragrance company Phlur was acquired by Los Angeles-based beauty incubator The Center in February 2021. Following its $600M purchase of a 51% stake in Kylie Cosmetics in 2019, Coty snapped up a 20% stake in Kim Kardashians beauty business, In September 2019, SC Johnson purchased mens skincare brand, Edgewell announced plans to buy mens grooming brand, It was reported in October 2020 that mens personal care company. Livestreaming beauty shopping is taking off on platforms like Facebook-owned Instagram and Alibabas e-commerce site. For example, heres the top five ranked websites in the moisturizers sector of the beauty industry (informational searches vs product searches). Investing in SEM allows beauty brands to show up at the top of search results for important keywords. ET by Tomi Kilgore. As a result, youll create a stronger bond between your brand and your customers. Tutorials, comparisons, and behind-the-scenes are simple, yet effective ways to build rapport with an audience. Beauty brands have long pursued personalization, but have experienced plenty of starts and stops between lack of technological advancements, poor data collection processes, and nascent business models, among other factors. As soon as this statistic is updated, you will immediately be notified via e-mail. 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. As a culture, we are realizing that gender is no longer a fixed concept, said Sam Cheow, senior vice president of corporate innovation and product development at the Este Lauder Companies, in an interview with Harpers Bazaar. The cosmetics industry has been segmented on the basis of category, gender, distribution channel, and region. Share. Around 11% of beauty and health online shop users in the United States say they are likely to use Mac Cosmetics again. Is your brand doing what its going to take to win in the future? Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. The COVID-19 pandemic has a major impact on the growth of the market. Amid this shift, beauty has largely held its place in shoppers lives, attracting spending even when other product categories have taken a hit. Since then, Western shoppers have clamored for Korean beauty products, with items like sheet masks and snail cream becoming commonplace in beauty stores. Unilever, LOreal, Avon, Oriflame Cosmetics AG, Revlon, Inc., Coty Inc., The Estee Lauder Companies Inc, The Procter & Gamble Company, Kao Corporation, and Shiseido Co. Ltd are the leading players worldwide. Product Modernization in Terms of Cosmetic Items to Expand Product Demand. It launched a private label beauty brand called Belei in 2019 and recently invested in India-based D2C beauty site MyGlamm. Each virtual look is created based on whats trending and popular near each respective store. "Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022." 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. Companies that provide business-to-business (B2B) booking and on-demand platforms for salon and spa services account for 12% and 11% of deals in the industry, respectively. The promise of personalization is appealing to customers looking to avoid decision fatigue, but the granular information collected by many brands may raise some concern many privacy policies of these upstart consumer beauty brands allow them to sell such information to other companies at will. This gives consumers the freedom to go home and research products and reviews online before making a purchase decision. On the basis of distribution channel, the hypermarkets/supermarkets segment held a major share in the market in 2019, and is projected to remain dominant during the forecast period. What is the crucial factor driving the global market? While MAC may have provided the blueprint for the brands that followed, the company hasn't been terribly affected by their competitors' success. While product personalization isnt a new trend, beauty brands are continuing to adopt new tech and refine their methods to create more customized formulations for consumers from tailor-made lip color to individualized hair treatment. A successful video marketing strategy should include a variety of video types, including everything from short videos on Instagram and TikTok, to longer videos on YouTube and blogs. July 12, 2022. *Taxes/Fees, if applicable will be added during checkout. There are ample opportunities to seize greater market share. You need at least a Starter Account to use this feature. Moreover, increase in urbanization, rise in working class population, and competitive pricing boosts popularity of hypermarkets in developed and the developing region. Countries around the world imposed lockdowns, and curfews, which has hugely impacted lifestyles, health & wellbeing, and affected manufacturing industries. Title. Meanwhile, incumbent brands like Chanel, YSL, and others are revamping their product launch and marketing strategies to attract younger shoppers. Virtual try-ons are not new. To use individual functions (e.g., mark statistics as favourites, set (For more, read our brief on How Material Innovation Will Improve Sustainability In Beauty & Personal Care.). after the death of one of the founding Franks, they bought the remaining share. Lets look at some key drivers. The easy-to-read efficacy testing panel highlights the difference products have made in studies looking at metrics like hydration, firmness, oiliness, and more. These companies formulate and package products to improve convenience and user experience, which eases consumers into using more sustainable products without changing their routines to accommodate, for instance, scoopable shower gels or chewable toothpastes. Incumbent brands including MAC Cosmetics, Tom Ford, Gucci, and Marc Jacobs have all launched gender-neutral lines across makeup, fragrance, and clothing as well. Some examples of amazing digital customer experiences include: For example, Ultas Glam Lab lets customers see what theyll look like using different types of color cosmetics like mascara and eyeshadows, as well as with different hair color or eyelashes. In particular, perimenopausal concerns have seen increasing attention in skincare, for example: Beauty brands are also looking to babies and children for untapped opportunities, with examples like: Luxury skincare brands such as Pai Skincare, Dr. Barbara Sturm, and others have expanded into baby and childrens skincare products. For example, California-based ManiMe uses 3D scanning and printing technology to create customized press-on nails that are shipped to the customer. Meanwhile, LOral, in partnership with tech startup Gjosa, developed a device called the Water Saver that reduces the amount of water required at rinsing stations in salons. For example, Fenty features a face shade finder on its website and enables site visitors to choose from 40 different shades of foundation. Since first establishing itself as a go-to provider of AR for beauty tech in 2017, the Taiwan-based beauty company has expanded its virtual try-on offering, leveraging 3D face AR technology to let users virtually test an array of makeup products. the media outlets selected for the campaign are highly relevant to the market base. Hence, sustainability has become a priority across all industries. Its becoming critical for beauty brands to incorporate sustainability into their business model and operations, and water-saving techniques are crucial to the process. Last year, LOral launched Perso, its AI-powered device to formulate and dispense personalized skincare, lipstick, and foundation. Thank you for contacting us, our sales representative will get in touch with you shortly! Often, though, lesser-known beauty experts who have a more dedicated, loyal, and sincere following deliver better results for brands. During the pandemic, lockdowns and emergency measures hampered the supply of raw materials to the market. Historically, the lions share of beauty products have been purchased in-store, such as department stores, drugstores, and specialty shops. All Rights Reserved. You can see why SEO is incredibly important for beauty brands. LOral is looking to bring it to 10,000 salons in coming years and says it can save up to 80% of water used in rinsings. LOral, for instance, has credited its diverse pricing strategy for enabling it to absorb even severe market conditions like in 2020.. Innovative strategies such as new product launches with natural ingredients and appealing packaging have been adopted by manufacturing companies to increase sales of their cosmetics products. To thrive, brands must be hyper-aware of current beauty trends and shape their growth marketing strategies to align with the times. Pandemic disrupted the entire world and affected many industries. All at once, the Covid-19 pandemic has shifted shopping and socializing online and sparked desire for self-expression and self-care; virtual try-on technology has improved; and partnerships have made the tech more widespread than ever. Both companies raised funding in Q320. 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. TikTok, in particular, is a massive opportunity for brands, driving viral sales and reshaping consumer preferences. In recent years, one of the biggest ways ingredient transparency has manifested is through the clean beauty movement, which focuses on natural and organic products. In 2019, the company launched in-app checkout for shoppable posts and has since rolled out features such as augmented reality shopping, in-app reminders for new product drops, and even shoppable videos expanding its e-commerce role for beauty products being promoted by brands and influencers. The long-term potential is driven, most notably, by the rise of the middle and upper income classes, as well as by the growing number of senior citizens and growing urban population on the lookout for products that meet their diverse aspirations. Removing water from product design and shipping is a key emerging theme across beauty brands efforts to improve operational sustainability. By gender, it is divided into men, women, and unisex. Pinatel says definitely; MAC has seen a three-fold increase in virtually trying on makeup. In fact, Dotdash, the parent company of Byrdie, invested more than $50 million into content over a three-year period across their publishing portfolio. Besides this, the report provides insights into the makeup market trends and highlights significant industry developments. As natural beauty ingredients are gaining popularity, the need for natural preservatives is also rising, resulting in research opportunities for organic and natural constituents. Thats why the global market value of natural cosmetics is projected to hit $54B by 2027. Its AI Skin Diagnostic tool leverages AI-powered algorithms to analyze a users skin across dimensions including wrinkles, redness, oiliness, texture, and more to make personalized skincare product recommendations. Companies that sell clean beauty products can expect to see a surge in demand moving forward. When we zoom in to examine 109 product-related keywords within the Skincare market (which represent 4.64 million annual Google searches in the U.S.), six of the top 10 Google search results are publishers or blogs. 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. In recent years, homegrown beauty brands such as Perfect Diary, Florasis, and Judydoll have emerged to address native demand in the second-largest market for makeup. Total global beauty industry spending in 2020 was $483 billion, and the annual total is expected to top $716 billion by 2025. Download our beauty industry report below for more beauty industry insights. Virtual try-on tech leverages augmented reality to allow shoppers to test how different beauty products will look without needing to reach for the makeup remover wipes afterward. Excessive use of certain creams and powders and hair coloring products can result in rashes or patches on the skin and permanent hair graying. Long-term and extensive use of chemical rich shampoos, serums, and conditioners lead to heavy hair fall problems. But, why is the beauty industry growing? A wave of startups and corporates are developing innovative material solutions to concentrate the active ingredients in shampoo, hand soaps, and more. Sustainability is a hot topic across virtually every sector, but its become a particularly important conversation within CPG, an industry with replenishable products historically featuring single-use packaging. Copyright 2023 CB Information Services, Inc. All rights reserved. On the basis of category, the skin and sun care products segment constituted a major cosmetics market share in 2019; however, the deodorants & fragrances segment is projected to experience growth at the highest CAGR during the forecast period. So, whereas content strategy is the high-level plan, content marketing is how you get it in front of your audience. While most analog brick-and-mortar retail is staring at the fate of a video rental store, MAC Cosmetics is taking the virtual road. In June 2020, Glossier committed $500K in grants to 16 Black-owned beauty businesses, while LOral recently partnered with the NAACP to grant 30 $10K grants to Black-owned beauty businesses. The U.S. Accounts for Over 27.1% of Global Market Size in 2020, While China is Forecast to Grow at a 9.9% CAGR for the Period of 2020-2027 The Color Cosmetics market in the U.S. is estimated at US . maccosmetics.com's audience is 24.35% male and 75.65% female. Which factors are responsible for driving the product demand? The brand also has over 500 stores globally. A market in which L'Oral is the global beauty leader. Haircare startup Prose, for instance, recently launched a subscription service for supplements which it says can prevent hair loss and promote healthier scalps. Going forward, expect a greater focus on the connection between gut health and beauty as the microbiome gains momentum as a wellness topic. In November 2020, Perfect Diarys parent company, Yatsen, debuted in a $617M IPO on the NYSE. 7 Proven Business Growth Strategies that Work (+ Examples), How Byrdie Toppled Billion Dollar Beauty Brands (Without Ads), Organic Growth 5 Strategies to Drive Sustainable Growth, Download Terakeets Beauty Industry Report, Deodorants, Personal Care Products, Feminine, Interactive tools/apps (like the Fenty shade finder). Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. On the business front, using ingredients that are mined or farmed introduces potential supply chain volatility, given the quantity of vendors, farms, and fisheries that have to be involved in supplying ingredients, while synthetic ingredients are made in more controlled environments that can offer consistency. LOral is doubling down on the South Asia Pacific, the Middle East, and North Africa regions which will account for the bulk of LOrals new business over the next decade, per the company. statistic alerts) please log in with your personal account. Statista. What will be the market value in the future? In addition to great content and SEO, these publishers also have strict editorial standards and publish expert advice, including reviews, hair, product, and makeup tutorials. Over the long term, SEO is better than PPC, providing both compounded returns and a much higher ROI. A. Join 840,000+ CB Insights newsletter readers. 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. 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. The dominant players control a large market share because they have well established distribution channels. With the rise of social media and advanced data analysis, brands are able to deliver increasingly relevant and targeted messages to consumers. Face powder is highly used as a base to apply bronzer, contour, or blush. 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. Another important factor in a successful omnichannel experience is the ability for store associates to connect with customers online. Furthermore, the higher cost of skin-lightening products may hamper product demand. Inclusivity is also playing an increasingly important role in the beauty industry. Apart from this, the online segment is anticipated to hold the fastest growing CAGR during the forecast period owing to the rapid boom of e-portals during 2020. Based on geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. LOral-owned ModiFace also allows customers to try on makeup virtually. Corporates like Unilever, P&G, and Target have all tapped into this trend through acquisitions, accelerators, internal brand incubation, and more. Then you can access your favorite statistics via the star in the header. Ultimately, the ingredient transparency trend will likely go more mass market and global across all consumer products. Across the skincare queries that Terakeet examined, Amazon ranked eighth in organic market share. The powder segment is estimated to grow at a significant rate in the coming years. Plus, keep in mind that roughly 70% of the clicks in Google go to the organic listings.