Most interestingly, 70% of the stores consumers personalized each product they bought with the stores custom printing; a prediction I have for high-levels of gift-giving this holiday season and beyond. Livestreamer Jiaqi Li promoting beauty products on Alibabas platform. Companies that sell primarily to Millennials and Gen Z will want to focus on Instagram, TikTok, Snapchat, YouTube, and Pinterest (to a degree). 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. However, even Amazon has challenges competing in various beauty market sectors. Beauty hasnt historically been a key focus area for big tech, but these giants will inevitably continue to extend their influence in the sector. Thats why the global market value of natural cosmetics is projected to hit $54B by 2027. Pre-assembled Student Kits are available to purchase through Customer Service . These are a relatively new marketing strategy that work especially well for the cosmetics industry where personalization is important. *Taxes/Fees, if applicable will be added during checkout. Regular makeup use is harmful for skin as it breaks the skin's protective layer. Meanwhile, tools like Essies ModiFace-powered On Hand tool and Anastasia Beverly Hills The Brow App offer applications in nail polish try-on and brow shaping. For example, California-based ManiMe uses 3D scanning and printing technology to create customized press-on nails that are shipped to the customer. Text version Dermocosmetics market Global beauty market Focus on the digitalisation of beauty +40% global growth in online cosmetics sales 22% The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. LOral-owned ModiFace also allows customers to try on makeup virtually. Countries around the world imposed lockdowns, and curfews, which has hugely impacted lifestyles, health & wellbeing, and affected manufacturing industries. Up to 70% of surveyed US consumers said they would pay more for sustainable packaging, per McKinsey. 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). The Definitive Guide, 10 Content Marketing Strategies for Beauty Brands + Examples, 9 Powerful Ecommerce Content Marketing Strategies for 2022, 10 Excellent Content Marketing Examples to Inspire Your Strategy, 10 Remarkable Benefits of Content Marketing. Looking ahead, expect functional fragrances to be incorporated into more beauty products and categories, including experiential beauty offerings such as spas and wellness hotels. 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. Look for brands to continue to develop hyper-personalized offerings in order to differentiate themselves from competitors and cater to consumers more effectively. After seeing the success of independent players such as vertically integrated incubator Seed Beauty, which is behind ColourPop, Kylie Cosmetics, and more big beauty corporates have followed suit with their own incubators and accelerators, with examples including: LOrals Seed Phytonutrients and Unilevers Skinsei are just a few examples of internally incubated brands. However, in 2020, MAC Cosmetics . In 2020 the company invested in the social commerce software company, Replika Software, in order to increase ecommerce sales and peer-to-peer selling. Strategic B2B Content Marketing: How-to Guide for 2022, What is Content Marketing? Both companies raised funding in Q320. Companies in the space often promote a feeling good is looking good ethos. For brands, targeting multiple price points and diversifying product portfolios could help them weather periods of economic uncertainty. However, that doesnt mean that the in-store experience is a thing of the past. 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. In 2020, the cosmetics market was named the third-largest market operating in the UK. Moreover, cosmetics products have witnessed prominent adoption in the developing countries such as India, owing to swift change in consumer lifestyle, increase in disposable income, and surge in need for cosmetics products derived from natural extracts. The beauty and personal care industry generates nearly 120B packaging units every year, and nearly 91% of these fossil fuel-based bottles, wrappers, and other plastic waste are never recycled, accumulating in the ocean and landfills. Ultimately, the ingredient transparency trend will likely go more mass market and global across all consumer products. These are already being offered by companies like Neom Organics and Aeroscena. It can be used to nurture relationships, promote special offers, recover abandoned carts, highlight newly published content, and more. 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 The key players profiled in the cosmetics market report are Avon Products Inc., Kao Corporation, LOreal S.A., Oriflame Cosmetics S.A., Revlon, Inc., Shiseido Company Limited, Skin Food Co., Ltd., The Estee Lauder Companies Inc., and The Procter & Gamble Company and Unilever Plc. 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. We are always driven and inspired by the consumer, Philippe Pinatel, MAC Cosmetics Global Brand President, tells me. (For more, read our brief on How Material Innovation Will Improve Sustainability In Beauty & Personal Care.). Overall, the online channel for beauty in the U.S. grew by 5.6% in 2020, whereas the offline channel contracted by 1.2%, according to Statista. Although COVID-19 shifted consumer shopping behavior patterns within the beauty industry, theres no doubt that the industry will continue its current growth trajectory. Moreover, how are online sellers capturing market share from brick-and-mortar retailers? Face Segment to Dominate the Market Owing to Rising Product Demand. Global digital advertising spending is increasing year after year, accounting for a growing proportion of total media spending, estimated to average almost 54% worldwide in 2020. Amazons dominance in ecommerce SEO is, of course, well known. Chemicals used as ingredients in cosmetic products can have many adverse side effects on skin. 14 Trends Changing The Face Of The Beauty Industry In 2021 Based on our analysis, the global market exhibited a decline of 14% in 2020 as compared to 2019. Watch for the beauty and personal care category to follow the food and beverage industry, as companies in the space have adopted biodegradable and recycled plastics more broadly. The Marketing Strategies of Nars vs Mac | MintTwist Terakeet analyzed 915 of the top keywords in the skincare market, representing 26.52 million annual U.S. searches. 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. Here are some of the most important online beauty industry marketing trends to watch. The cosmetics market size from 2021 to 2027 is $463.5 billion. These generated 832,980 impressions and reached 314,170 users. In fact, it can range from natural product development, to cruelty-free products, to products created with sustainability in mind. 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. For instance, they understand what works best for Asian skin. Tutorials, comparisons, and behind-the-scenes are simple, yet effective ways to build rapport with an audience. 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. This digital marketing channel is especially effective when combined with SEO. 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. The dermocosmetics market 2020 The only cosmetics market that recorded growth in 2020. Supply Chain Disruptions Due to the Pandemic Affected the Market Growth. What was the value of the global makeup market in 2021? 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. If customers dont have a superior experience, theyre not likely to spread the word to friends or on social media. And this isnt just the case for informational keywords. 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. Today MAC Cosmetics is one of the top 3 most profitable global makeup brands. Neutrogena, for example, put out compostable wipes. Its one of the most effective means of building brand love. [Online]. In the United States, beauty market share by revenue is segmented by the following beauty categories. Some brands are able to launch new product lines in just 3 months. In fact, Dotdash, the parent company of Byrdie, invested more than $50 million into content over a three-year period across their publishing portfolio. Book your free consultation and let our research experts help you with your needs/problems. Virtual try-ons are a key decision-making tool to assist with buying beauty products, especially makeup. Sephora is a good example, with its thriving Beauty Insider Community. 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. Furthermore, the pandemic adversely affected the global cosmetics products market, resulting in a sharp drop in sales. This also helps in increasing revenue of companies operating in this industry. Is your brand doing what its going to take to win in the future? 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. Livestreaming, which refers to livestreamed shopping trips where viewers can purchase the items being featured, is offering a new way to engage younger audiences and boost sales. Baby care brand Mini Bloom was launched in December 2020. Beauty Industry: Cosmetic Market Share, Trends, and Statistics - Terakeet Currently, beauty juggernauts are looking to indie brands to experiment in newer markets and nascent trends. The website provides the same product information and customization options as the physical store. This in turn fosters the demand of the products in countries such as the U.S., Canada, and Mexico. The makeup category suffered losses, especially among teens, with Piper Jaffray reporting a 21% year-over-year decrease in spending among that group. Despite the negative impact of the coronavirus pandemic, the global cosmetics market is expected to recover in the coming years. Conversely, some brands are looking to offer consumers an alternative to doctor visits for certain issues. In addition to scoring an amazing discount, MAC Cosmetics fans will still . Convergence of advancements, beauty, and lifestyle propels growth of the market. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. 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. After 18 months of work, MACs concept store is another response to its loyal fanbase. Companies going after the space will have to calibrate their messaging carefully and prioritize transparency to successfully engage customers while managing expectations. But, what is content marketing? Beauty conglomerates and indie brands alike have tapped into this trend: LOral, Este Lauder, and Unilever have all pledged to reduce single-use packaging, while brands like Pai Skincare and HiBar are reducing virgin plastic use or moving away from plastic entirely. Already, corporates are taking note. 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. Estee Lauder's MAC Cosmetics brand stands out as the leader in the overall market with a 5.1% share, and lip products at 13%. 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. CPG incumbents are also making moves. TikTok, in particular, is a massive opportunity for brands, driving viral sales and reshaping consumer preferences. It has an annual turnover of over $1 billion and has over 500 independent stores around the world. This gives consumers the freedom to go home and research products and reviews online before making a purchase decision. Based on distribution channel, the market is segregated into supermarkets & hypermarkets, exclusive brand stores, online/e-commerce channels, and others. Chile-based Algramo, which expanded to New York in August 2020, also offers opportunities for refilling household products, though beauty and personal care is likely a future opportunity thanks to its partnerships with Unilever and Nestl. It even opened a brick-and-mortar hair salon to showcase its tech. Total global beauty industry spending in 2020 was $483 billion, and the annual total is expected to top $716 billion by 2025. The data offered to us was exactly what we were looking for. Corporates like Unilever, P&G, and Target have all tapped into this trend through acquisitions, accelerators, internal brand incubation, and more. Lets look at some key drivers. Then you can access your favorite statistics via the star in the header. How much is the beauty industry worth? Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. Amazon has made major strides in expanding its beauty retail channel. DNA testing kits, which allow companies to provide product recommendations or create custom products based on users genes. Similarly, cosmetics brand Kiko Milano opened a concept store in Italy in 2016 featuring in-store technology from Mercaux. 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. Removing water from product design and shipping is a key emerging theme across beauty brands efforts to improve operational sustainability. Companies like OmeCares OmeSkin, Alll, Skinshift, and others are offering beauty-focused DNA testing kits, which can curate product recommendations or branded, personalized products based on users genomic skin traits. 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. Urban which connects users with skincare professionals, nail specialists, and more is headquartered in England. 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. Cosmetics exports from Korea surged 15% in 2020, thanks to growing demand from the US and other Asian countries, per the Korea Customs Service and the Korea Cosmetic Association. For instance, in May 2021, Huda Beauty, a cosmetic brand headquartered in Dubai, UAE, announced the launch of its new cosmetic collection, GloWish. How generative AI can augment customer service agents, Big beauty incubates its own disruptors, ramps up acquisitions, Inclusive beauty becomes table stakes and new niches create huge opportunities, Synthetic beauty gains traction, riding sustainability and supply chain tailwinds, New sustainable packaging prototypes and business models take off, Waterless beauty as the next big eco trend, Beauty brands focus on value and varied pricing, Beauty further integrates with the wellness economy, Virtual try-on enables product discovery and engagement, Ingredient transparency trumps clean beauty, New approaches to omnichannel for beauty take hold, Quizzes, which address customer-specific preferences and customize products according to the results. Age Distribution 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ Gender Distribution Female 75.65% Which region held the highest market position in 2021? Last year, LOral launched Perso, its AI-powered device to formulate and dispense personalized skincare, lipstick, and foundation. How can marketing managers create WOM buzz around their products? Join 840,000+ CB Insights newsletter readers. Annual Reports - The Este Lauder Companies Inc. after the death of one of the founding Franks, they bought the remaining share. Other companies in the space are developing devices for spa services at home, for example: But the movement isnt limited to cosmetic services its also expanding to wellness. (Clients can read more about independent and corporate-owned beauty accelerators and incubators here.). 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. Makeup Market Size, Share & Trends | Growth Analysis [2029] Branded communities are the wave of the future, and smart beauty brands will make them a priority. MAC Cosmetics' headquarters is located in Buffalo, New York, USA 14216. But, why is the beauty industry growing? 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. Tech is playing a bigger and bigger role in the beauty industry. As the pandemic subsides, customers are undoubtedly excited to return to their favorite spas and salons. Get insights on topics that are crucial for your business. Prices for natural ingredients rose in exports from developing countries due to higher freight prices and longer shipping delays. The surge of consumers focusing on self-care amid the pandemic has only accelerated the emergence of wellness as a holistic trend extending to traditional beauty areas like skincare. New formats for ingestible beauty are also emerging, including companies offering daily skincare shots (Akiva), collagen-infused drinks (SkinTe, Pop & Bottle), and even meal kits (Sakara Life, Urban Remedy). 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. It launched a private label beauty brand called Belei in 2019 and recently invested in India-based D2C beauty site MyGlamm. In-house incubators offer a way for conglomerates to build relationships or even gain equity stakes in these companies paving the way for future acquisitions as it becomes clear which early-stage brands will mature and which will fizzle out. Allure and Byrdie rank first and second, and their websites attract between 60 and 80 million organic search visitors overall each year. Much of the beauty livestreaming activity in Asia has been driven by high-profile influencers known as KOLs (key opinion leaders) like Lipstick King Jiaqi Li, who reaches millions of viewers every month. LOrals Perso device accounts for this data to dispense custom-formulated makeup every day. Please create an employee account to be able to mark statistics as favorites. Soothe connects customers with on-demand massage therapists who offer deep tissue, sports, and prenatal massages, among others. Certain areas within beauty, such as skincare, became an area of focus instead as people looked for ways to de-stress. As a Premium user you get access to background information and details about the release of this statistic. C-beauty brands have also leveraged partnerships to gain traction beyond local markets. The top 10 U.S. beauty markets were up 2% compared to 2019, while the remaining U.S. was up 10% compared to pre-pandemic levels. Ultimately, targeting new continents or even country-specific markets requires hyperlocalization, especially as the global beauty markets further develop and new heritage-inspired trends take off. Social media marketing is essential for beauty companies, but choosing the best platform depends on the brands target audience. Touch device users, explore by touch or with swipe gestures. Pause Well-Aging focuses on menopausal skincare products that address perimenopausal concerns such as hot flashes, night sweats, and skin elasticity. Consumer behavior has shifted. For example, Fenty features a face shade finder on its website and enables site visitors to choose from 40 different shades of foundation. Get detailed COVID-19 impact analysis on the Cosmetics Market. Several brands are experimenting with biosynthetic ingredients: Beauty conglomerates have been active in developing biotechnology partnerships as well. MAC doesnt claim to have anticipated an atmosphere of heightened germ-awareness, despite their concept store lending itself to a more touch-free experience. At the same time, consumers are increasingly realizing that not all natural ingredients are good for you and not all synthetics are bad. The service also works well for customers purchasing products they already know and love. Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. With the flourishing fashion and entertainment industry, the demand for latest cosmetics is increasing significantly. portalId: "763793", Some options include: Building vibrant online communities is an effective way to foster brand loyalty and increase engagement among customers. Darker skin reacts differently to skin conditions like acne, eczema, and keloids, and is more susceptible to hyperpigmentation due to higher amounts of melanin. The 6 Biggest Issues Facing the $532 Billion Beauty Industry Though brands commonly cite clinical studies alongside their products, consumers may become skeptical if they dont notice a difference in a real-world scenario, especially for products positioned as having a direct impact on health. 2023 Terakeet LLC. The report covered all the points and was very detailed. LOral confirmed its position as the global beauty leader once again this year. 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. Some beauty brands are exploring more creative solutions, using materials like mushrooms, wood pulp, or agar. Existing corporations have focused on growing brands founded by people of color to target disparities in traditional beauty products and cater to underserved markets. However, more sophisticated approaches are starting to emerge, such as that taken by early-stage startup Zamface, which offers a platform to help viewers find a livestreamer with similar facial features to them. At the same time, beauty companies are looking to master voice-based shopping to ensure their brands remain top of mind for consumers. 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. The approach is already popular in Asia, but it has started to make inroads in markets like the US. Meanwhile, unicorn Zenoti, which raised $160M in Series D funding earlier this year, provides services management software for salons in over 50 countries. Similarly, they need to keep pace with effective marketing strategies such as more advanced beauty influencer marketing and branded communities. As pledging to reduce single-use plastic becomes fundamental, the shift toward sustainable packaging is spurring new business models. Around 11% of beauty and health online shop users in the United States say they are likely to use Mac Cosmetics again. In 2021, the global market value stood at USD 40.37 billion. Furthermore, the higher cost of skin-lightening products may hamper product demand. Beauty markets across the globe are developing brands for internal consumption while also exporting them globally. Going forward, the beauty industry will continue moving beyond empty buzzwords like clean and natural and instead get down to the nitty-gritty of specific ingredients and their effects. Google works with brands to use its search data to better understand beauty shoppers preferences. LOral has been a pioneer in social commerce through the years, including livestream shopping. For example, Dove recently named Lizzo a new brand ambassador. Incumbent brands including MAC Cosmetics, Tom Ford, Gucci, and Marc Jacobs have all launched gender-neutral lines across makeup, fragrance, and clothing as well. The market of Europe is characterized by the occurrence of various international cosmetic brands in countries such as France, U.K., and others. With an annual growth rate of 4.75%, total revenue is expected to top $716 billion by 2025. In addition, body positivity is a strong trend in the industry. Revenue of the cosmetic & beauty industry in the U.S. 2002-2022, Value of the leading global textile exporters in 2021, by country, Vegetable oils: global consumption 2013/14 to 2022/23, by oil type, Cocoa bean production worldwide 2020/2021-2022/2023, by country, World coffee per capita consumption: major consumer countries 2015, Cosmetics industry in the U.S. - statistics & facts, To access this forecast, you need one of our, Research Manager Consumer & Business Insights, Profit from additional features with an Employee Account. Voice assistants like Amazons Alexa and Apples Siri present partnership opportunities for big tech and beauty.