For example, heres the top five ranked websites in the moisturizers sector of the beauty industry (informational searches vs product searches). The service also works well for customers purchasing products they already know and love. For many, the conditions of the pandemic drove them toward product categories like skincare (and away from those like makeup) that play a central role in at-home routines. Beauty sales declined as much as 30% in the first half of the year, according to McKinsey. This includes Asian beauty markets like China, which is a hotbed for virtual beauty thanks to its advanced mobile technologies and tech giants. In November 2020, Unilever-owned Vaseline launched the Equitable Skincare for All program in conjunction with actress Regina King and startup Hued to offer more training for dermatologists and resources for people of color. 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. If beauty companies publish content around informational keywords and optimize the on-page elements, then they can more effectively reach customers who are in the early stages of the buying process and nurture the relationships until prospects are ready to purchase. 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. Already, the countrys male skincare market was more than twice the size of South Koreas and more than three times the size of the US market as of last year, per Euromonitor. 498 Seventh Avenue 12th floor CeraVe, e.l.f. Governments imposed lockdowns and shutdowns of retail stores, affecting retailers as the epidemic spread across the globe. The COVID-19 pandemic negatively impacted the cosmetics market in 2020. Which is the leading product in the market? With the rising awareness of harmful chemical ingredients on ones health and the environment among consumers, their buying behaviors have shifted to organic products. To use individual functions (e.g., mark statistics as favourites, set Ingredient transparency and nontoxic options will be crucial for this category to see sustained growth. After testing a virtual concept store in Shanghai last year, MAC saw huge success. 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. As natural beauty ingredients are gaining popularity, the need for natural preservatives is also rising, resulting in research opportunities for organic and natural constituents. The MAC Cosmetics Black Friday sale. Terakeet analyzed 3,168 high-value, non-branded beauty industry search queries, which account for 112.7 million annual Google searches in the U.S. Today, MAC has opened the doors of its newest design. This inside-out approach emphasizes preventing issues that other beauty products may only be able to cover up. CXOs further added that rise in consciousness regarding physical appearance among individuals as well as working class professionals propels growth of the cosmetics market. Import and export restrictions on goods and quarantine and lockdown measures imposed by governments are key challenges exporters are facing during this pandemic. Alll, for example, analyzes users genes through a DNA test to provide targeted skincare products. 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. Moreover, the need for cosmetic products among beauty professionals is projected to foster the demand for the entire market. A. Asia-Pacific region holds the maximum market share of the cosmetics market. Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. Major opportunity exists in meeting the needs of cohorts beyond the young adult (ages 18 to 35) segment. Hypermarkets/supermarkets are gaining popularity, owing to availability of a broad range of consumer goods under a single roof, ample parking space, and convenient operation timings. 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. Big beauty corporates are also attempting to penetrate new markets, especially in South Asia and Africa. Google works with brands to use its search data to better understand beauty shoppers preferences. For instance, creating and promoting engaging content across multiple channels helps beauty companies increase brand awareness and create authentic relationships within their audience. When we compared informational vs transactional searches, online publishers really pulled ahead. Its especially important for ecommerce and direct to consumer (DTC) brands that dont have physical retail locations. Moreover, how are online sellers capturing market share from brick-and-mortar retailers? the media outlets selected for the campaign are highly relevant to the market base. 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. Este Lauder purchased a majority stake in Deciem at a $2.2B valuation in February 2021. To know how our report can help streamline your business, Speak to Analyst, High Absorbing Features of Powder to Trigger Demand for Powder Segment. The top six market share holders for informational searches are publications. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the cosmetics market players. As a result, youll create the sort of lasting relationship that often ultimately leads to a purchase. Demand for these services is not limited by geography. A. Expect to see livestream shopping becoming more popular in the US after already taking off in China. A. A. Author(s) : Nitesh C, Himanshu V , Roshan D, Global Opportunity Analysis and Industry Forecast, 20212027, AVON PRODUCTS, INC, KAO CORPORATION, LORAL S.A., ORIFLAME COSMETICS S.A., REVLON, INC., SHISEIDO COMPANY, LIMITED, SKIN FOOD CO., LTD., THE ESTEE LAUDER COMPANIES INC, THE PROCTER& GAMBLE COMPANY, UNILEVER PLC. Local D2C brands are popping up to capitalize on the opportunity at least 10 new China-based male skincare brands were reportedly launched in 2020. When autocomplete results are available use up and down arrows to review and enter to select. In February 2021, biotech beauty company Codex Beauty Labs announced a new labeling strategy to include clinical efficacy data on packaging for all its skincare products. The region is anticipated to experience a significant growth in the coming years, owing to the rise in the young population along with their rising consumption of branded beauty products. Supply Chain Disruptions Due to the Pandemic Affected the Market Growth. Besides this, the report provides insights into the makeup market trends and highlights significant industry developments. This in turn fosters the demand of the products in countries such as the U.S., Canada, and Mexico. Here are some of the most important online beauty industry marketing trends to watch. With ever-increasing online sales, digital marketing is increasing in importance to beauty brands. But, make sure you include plenty of visuals, whether in the form of graphics, photos, or videos. Final Thoughts. Given rapid expansion plans and high demand, companies should keep an eye on quality control new plants can encounter hiccups that may compromise the final product. Based on customer preferences, demographics, and behavior, email marketing also allows brands to deliver a more personalized experience to customers. There are ample opportunities to seize greater market share. However, even Amazon has challenges competing in various beauty market sectors. North America (By Product, Application Area, Distribution Channel, and Country), Europe (By Product, Application Area, Distribution Channel, and Country), Asia Pacific (By Product, Application Area, Distribution Channel, and Country), South America (By Product, Application Area, Distribution Channel, and Country), Middle East and Africa (By Product, Application Area, Distribution Channel, and Country). CPG incumbents are also making moves. The challenge remains in scaling up production. In 2022, the global cosmetics market experienced growth of over 16 percent in comparison to the previous year. Beyond quizzes, corporates have kept up by expanding to in-home devices that can gather more granular, specific user data to measure skin condition or deliver products more precisely. Large key companies across the globe focus on developing sustainable face products that are safe for the environment. 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. With an annual growth rate of 4.75%, total revenue is expected to top $716 billion by 2025. Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. Glosslab, for instance, has developed a waterless manicure that it offers to clients in its own salons on a membership basis. A. Though ingredient sourcing has historically been a trade secret for beauty companies, supply chain transparency could help improve the beauty production value chain and also help brands distinguish themselves as ingredient transparency becomes more widespread. Sephora Accelerates 2021 cohort will also only include founders of color. Looking forward to work together in the future, It has been a delightful experience working with you guys. The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. Since then, Western shoppers have clamored for Korean beauty products, with items like sheet masks and snail cream becoming commonplace in beauty stores. For example, companies like Heyday, FaceGym, and Skin Laundry offer on-demand facials. And new in-store pickup options connect the online and offline shopping experiences. K-beauty hit the United States in 2011 when Sephora began carrying Korean skincare brand Dr. Jart+. Box 289 Buffalo, New York14216 1-877-553-5536 Driving Directions MAC Cosmetics Summary ABOUT Overview Make-up Art Cosmetics is a manufacturer and supplier of cosmetics products. The global makeup market size is projected to grow from $41.85 billion in 2022 to $61.34 billion by 2029, at a CAGR of 5.61% during the forecast period. Moreover, prolonged exposure to such products results in the continuous deposition of toxic ingredients in body cells that can eventually cause adverse effects. 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. Amid this shift, beauty has largely held its place in shoppers lives, attracting spending even when other product categories have taken a hit. . In, Statista. Furthermore, China represents one of the fastest-growing markets for mens beauty and grooming products. Beauty brands and conglomerates will increasingly use varied pricing strategies to appeal to a broader range of shoppers, with the goal of remaining essential to their routines. Even though their audience is smaller, theyve built a more trusted community and therefore have more actual influence. Single User License, Five User License & Enterprise User License. Also look for on-demand wellness services to become more frequent offerings in the office as employee well-being becomes a top priority for bringing people back to the office following Covid-19. opens in a new window Click Here. Neutrogena, for example, put out compostable wipes. Jun 30, 2021. Inclusivity is also playing an increasingly important role in the beauty industry. In 2020, LOral rolled out Signature Faces, a line of virtual makeup products. The line provides makeup filters supported on a range of platforms, including Zoom, Instagram, Snapchat, and more. Refill models are being embraced across different beauty verticals. A. How much is the beauty industry worth? The collection includes MultiDew Skin Tint and Soft Radiant Bronzing Powder. We know where we will be getting business intelligence from in the future., Thank you for sending the market report and data. The Body Shop launched its refill stations globally in March 2021, allowing consumers to refill shower gels, hand soaps, shampoos, and conditioners in stores. Asia Pacific Makeup Market Size, 2021 (USD Billion), To get more information on the regional analysis of this market, Request a Free sample. Beauty trends come in cycles. So, whereas content strategy is the high-level plan, content marketing is how you get it in front of your audience. Customers can book a wide variety of services that would typically require going to a specific location. A few brands are working to cater to older consumers, such as Gen Xers or baby boomers. In 2021, the global market value stood at USD 40.37 billion. However, thats changing rapidly, with online sales projected to make up 48% of the total by 2023. . 2020 Annual Report. Furthermore, increase in penetration of various online portals globally and rise in number of offers or discounts attract large consumer base to purchase skin care cosmetics products through online channels. Use of cosmetics by men is expected to eventually increase and in turn supplement growth of the global cosmetics market. Clean, gender-neutral fragrance company Phlur was acquired by Los Angeles-based beauty incubator The Center in February 2021. Looking ahead, expect functional fragrances to be incorporated into more beauty products and categories, including experiential beauty offerings such as spas and wellness hotels. An Infographic Representation of Makeup Market, To get information on various segments, share your queries with us. Supermarkets/Hypermarkets Segment to Dominate the Market Due to Growing Demand for Variety of Options. 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. Countries around the world imposed lockdowns, and curfews, which has hugely impacted lifestyles, health & wellbeing, and affected manufacturing industries. Amazon runs a dedicated beauty supply store that sells salon products and equipment to businesses. Clean beauty is another business growth area within the beauty industry to watch. South Korea has been a trendsetter in this category, with men in South Korea accounting for a fifth of global spend on mens skincare in 2018 a trend often attributed to the rise in popularity of K-pop idols. Biotechnologies are increasingly impacting the production of beauty ingredients. These keywords span three vital markets, including skincare, makeup, and hair care. According to DECA, 80% of female teens said they were willing to spend more for clean beauty. A number of factors have propelled their growth: shifting perspectives in favor of domestic brands, the ability to leverage cultural connections, and rapid manufacturing, among others. All Rights Reserved. T&C*. The approach is already popular in Asia, but it has started to make inroads in markets like the US. With the solid foundation of an outstanding experience, companies can start creating other ways to get people talking. Despite their momentum, companies tying beauty to overall well-being face challenges around perceptions of effectiveness and trust. Meanwhile, Peace Out Skincare saw sales for its pore strips quadruple in just 24 hours after it was endorsed by TikTok skinfluencer Hyram Yarbro, while another teenagers viral video drove nearly $850K in sales for The Ordinary. They can view receipts on their smartphones after leaving the store. In addition to its traditional e-commerce site, it also sells beauty products on its Amazon Fresh and Whole Foods online grocery platforms a distribution channel that received a major boost during the pandemic and presents an opportunity for Amazon to cross-sell beauty products alongside consumers regular food orders. Furthermore, the higher cost of skin-lightening products may hamper product demand. 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. Another important factor in a successful omnichannel experience is the ability for store associates to connect with customers online. Meanwhile, global brands have already rolled out mens cosmetics lines. The presence of large players in the region provides huge opportunity for the consumers to have access to different beauty brands and select products according to their choice. Use Ask Statista Research Service. With the added convenience and the short wait times some brands have orders ready in as little as 30 minutes expect the option to be available long after Covid-19 subsides. the global market value of natural cosmetics is projected to hit $50.5B by 2027. Big companies like Este Lauder, LOral, and P&G are really an amalgamation of lots of brands, and when they roll up all those brands, they hit a revenue number. Indonesia, which has the largest Muslim population in the world, offers a, Brazil represents one of the fastest-growing global markets for beauty and personal care. As cosmetics have become an integral part of individuals lives, consumers, especially women, prefer to use cosmetics products, which are handy and easy to use while travelling or attending social meetings. Jun. Title. 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. While beauty supplements arent a new concept, an increasing number of startups are targeting the market with products that promise beauty benefits such as weight loss, clearer skin, and stronger hair. Brands targeting older demographics will want to focus more on Facebook and Pinterest. As the pandemic subsides, customers are undoubtedly excited to return to their favorite spas and salons. Many beauty brands including Ulta Beauty, Bluemercury, and Sephora have begun offering curbside pickup to limit germ spread during the pandemic. Nestl, for instance, acquired a majority stake in skincare startup Vital Proteins last year. Read on for a high-level look at the beauty industry, trends that matter, and cosmetics marketing strategies that will create the most success. Genomics is also playing a bigger role in personalizing beauty recommendations. 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. Skincare brands from Aesop to Ursa Major to Non Gender Specific have ditched gendered marketing, opting to package and sell unisex products that focus on specific skin concerns or conditions instead. Beauty Brands Focus on Acquisitions to Expand Product Portfolio. Going forward, expect to see beauty brands and tech giants alike turn to virtual try-on to gather shopper data and make more personalized product recommendations. 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. Analyzing a16zs investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? Ulta Beauty also pledged to double the number of Black-owned brands carried by the retailer by the end of 2021, committing more than $25M to the push for greater diversity. Consumers are continuing to realize that not all synthetic ingredients are detrimental, and that biosynthetic ingredients offer a viable, more sustainable alternative. Beyond incubators and accelerators, big beauty has been busy with a slew of acquisitions over the past year to expand customer acquisition channels, such as influencer marketing or better e-commerce infrastructure, and double down on burgeoning trends like natural beauty, including: New opportunities are also opening up for beauty brands looking to exit.

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