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. These are already being offered by companies like Neom Organics and Aeroscena. The easy-to-read efficacy testing panel highlights the difference products have made in studies looking at metrics like hydration, firmness, oiliness, and more. Neutrogena, for example, put out compostable wipes. Asia Pacific Makeup Market Size, 2021 (USD Billion), To get more information on the regional analysis of this market, Request a Free sample. Both companies raised funding in Q320. The definition is rather broad, and means the publication and distribution of content across all platforms. Opinions expressed by Forbes Contributors are their own. This digital marketing channel is especially effective when combined with SEO. 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. Many beauty brands including Ulta Beauty, Bluemercury, and Sephora have begun offering curbside pickup to limit germ spread during the pandemic. Hair color has seen a notable boost in the past year as lockdowns have prompted new forms of self-expression, per Sally Beauty Chief Merchandising Officer Pam Kohn. Traditional brands and beauty retailers are losing ground on product-related searches as well, when consumers are actively looking to purchase. Augmented reality apps that allow customers to virtually try on new products, Creating a referral program that rewards brand ambassadors, Highlighting customer reviews on their website, Rallying around a social cause, much like TOMS did by supplying shoes to those in need, Creating viral content that people want to share. By geography, Asia Pacific and North America dominate, accounting for more than 70% of the total market size combined. If you are an admin, please authenticate by logging in again. Lack of representation reaches beyond foundation shades and marketing. Plus, keep in mind that roughly 70% of the clicks in Google go to the organic listings. How Diversity Made MAC Cosmetics A Billion-Dollar Brand 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. Despite the negative impact of the coronavirus pandemic, the global cosmetics market is expected to recover in the coming years. Clean beauty brand Credo teamed up with virtual shopping app Hero in 2019 to provide online shoppers with the same customer service such as product knowledge and recommendations they would find in the store. It has over 7000 product offerings and 100 eye shadow shades. In the physical Shiseido flagship store, customers wear connected wristbands that scan product signs and add items to digital carts. And while some trends will fizzle out, others will only expand their reach. What will the next few years look like for the beauty industry? Brands such as SA.AL & Co., Bulldog Skincare, David Beckham's House 99 range, and Chanel's BOY are focusing on offering products for men's skincare needs to cater to its increasing demand. Read our deep dive into SEO vs SEM here for a more thorough comparison. According to the brand, the collection is cruelty-free and vegan, with sustainable packaging and ingredients. Skincare, haircare, make-up, perfumes, toiletries and deodorants, and oral. LOral leveraged Ecologic bottles in the launch of its sustainable personal care line, Seed Phytonutrients, including paper shampoo bottles that dont break down in the shower. As a result, many ecommerce and direct-to-consumer (DTC) brands saw an increase in sales due to the pandemic because millions of people had to shop almost exclusively online. Moreover, prolonged exposure to such products results in the continuous deposition of toxic ingredients in body cells that can eventually cause adverse effects. Based on geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. Based on our analysis, the global market exhibited a decline of 14% in 2020 as compared to 2019. 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. 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. 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. What are the product segment? Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. MAC Cosmetics is a leading brand because of its market segmentation. The global makeup market size was valued at USD 40.37 billion in 2021. As a result, brands are rolling out beauty products that arent targeted at one specific gender. As people have spent more time working and socializing virtually, video filters could prove to be another expanding use case for virtual makeup. Long-term and extensive use of chemical rich shampoos, serums, and conditioners lead to heavy hair fall problems. However, its hard to pin down an exact definition for clean beauty. With the flourishing fashion and entertainment industry, the demand for latest cosmetics is increasing significantly. The 6 Biggest Issues Facing the $532 Billion Beauty Industry The beauty industry experienced deep pain over the past year as it saw some big shifts. Why do they outrank the biggest beauty brands? Perfect Diary remains focused on targeting lower-tier cities, where customers may be less accustomed to the beauty market and more open to trying out new brands. 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). A variety of cosmetics are available in powder form, whether as loose or pressed powder, such as face powder and powder foundation. And it still remains an important and effective marketing vehicle for makeup brands and other cosmetics retailers. 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. 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. One emerging trend reflecting this convergence of health and beauty is the skinification of makeup, which refers to traditional beauty products like foundation and concealer which also promise healthier skin. The powder segment is estimated to grow at a significant rate in the coming years. Get detailed COVID-19 impact analysis on the Cosmetics Market. Companies that sell primarily to Millennials and Gen Z will want to focus on Instagram, TikTok, Snapchat, YouTube, and Pinterest (to a degree). Some companies are also introducing waterless or water-reduced initiatives to salons. Very satisfied with the overall report as it has helped me to build strategies for my business, This is regarding the recent report I bought from Fortune Business insights. 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. Statista. It certainly looks that way. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information The report was very accurate and as per my requirements. Though theres been a lot of buzz around more effectively targeting people of color in the beauty sector, theres still much to be done. Custom printing, in which companies formulate products specifically for each user. Up to 70% of surveyed US consumers said they would pay more for sustainable packaging, per McKinsey. Beauty markets across the globe are developing brands for internal consumption while also exporting them globally. The North America market share is expected to increase at a CAGR of 6.50% in the near term. The challenge remains in scaling up production. Genomics is also playing a bigger role in personalizing beauty recommendations. With an annual growth rate of 4.75%, total revenue is expected to top $716 billion by 2025. For example, in April 2021, private equity giant Carlyle Group took a majority stake in cosmetics company Beautycounter in a deal valued at $1B. In the context of e-commerce growth, social commerce is booming. An efficacy facts panel from a product label. There are ample opportunities to seize greater market share. With ever-increasing online sales, digital marketing is increasing in importance to beauty brands. The Perso app crunches data on a users skin condition via an uploaded selfie, environmental conditions via location data, and user-inputted skincare concerns to dispense custom formulas through the device. The supermarkets & hypermarkets segment is expected to capture a significant makeup market share during 2022-2029. Social media has become a critical way for teenagers to find the trendiest products in line with their clean beauty needs and beyond edutainment for beauty and skincare products. 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 rising concern about skin problems due to wearing makeup has affected the global demand, with the use of beauty products with chemicals resulting in acne, breakouts, and other conditions. Marketing plan for MAC Cosmetics - 2713 Words | Essay Example 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? Mac Cosmetics brand profile U.S. 2022 | Statista Cosmetics industry - statistics & facts | Statista Ingestible beauty is one wellness area gaining traction. How much is the beauty industry worth? Available: https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states, Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022, Immediate access to statistics, forecasts & reports, Find your information in our database containing over 20,000 reports. 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. The emerging glamor industry is boosting the demand for various skincare products among the young generation that can alter their appearance. $50 Off - MAC Cosmetics Coupons - April 2023 It even opened a brick-and-mortar hair salon to showcase its tech. Analyzing a16zs investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? This is also considered a marketing strategy for many bog beauty firms for brand building and market acquisitions. 498 Seventh Avenue 12th floor Beauty sales declined as much as 30% in the first half of the year, according to McKinsey. 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. Beauty hasnt historically been a key focus area for big tech, but these giants will inevitably continue to extend their influence in the sector. The cosmetics market effecting factor are changing lifestyle and increasing demand for natural ingredients in cosmetic products. But its place in the beauty world is more secure than ever. Use of cosmetics by men is expected to eventually increase and in turn supplement growth of the global cosmetics market. 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. The range includes liquid foundation, stick foundation, concealer, and compact, available in five shades. 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. opens in a new window Click Here. Consumers are wary of using products that contain harsh chemicals. Demand for these services is not limited by geography. Certain areas within beauty, such as skincare, became an area of focus instead as people looked for ways to de-stress. From virtual try-on features to AI-enabled skincare analysis to waterless beauty products, the pandemic has accelerated once fringe technologies. Each virtual look is created based on whats trending and popular near each respective store. Alibaba reported eye-cosmetic sales increased 150 percent, month over month, during the week of February 18, 2020.2 By contrast, skin-care, hair-care, and bath-and-body products appear to be benefiting from self-care and pampering trends. In the United States, beauty market share by revenue is segmented by the following beauty categories. Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. Title. The report covered all the points and was very detailed. However, because of their flexibility, convenience, and opportunities for personalization, at-home spa services likely arent going away. 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. Who's Winning in Online Beauty Right Now - TheStreet To compete online, beauty brands must develop new, innovative ways to capitalize on social channels. 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. Beauty brands are increasingly learning how to use social media channels for actual sales. 14 Trends Changing The Face Of The Beauty Industry In 2021 Few forms of brand marketing are more effective than Word of Mouth (WOM). Furthermore, China represents one of the fastest-growing markets for mens beauty and grooming products. . 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. Lets look at some key drivers. This trend is expected to grow, even as salons and spas reopen. At the same time, consumers are increasingly realizing that not all natural ingredients are good for you and not all synthetics are bad. 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. 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. However, in 2020, MAC Cosmetics . Certain powders also help to reduce the look of pores and fine lines. The collection includes MultiDew Skin Tint and Soft Radiant Bronzing Powder. Even though their audience is smaller, theyve built a more trusted community and therefore have more actual influence. Beauty and CPG incumbents should look to use investments, M&A, or partnerships to bring these tech innovations in-house to help achieve broader sustainability goals. 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. In addition to scoring an amazing discount, MAC Cosmetics fans will still . And new in-store pickup options connect the online and offline shopping experiences. Start reading instantly.This Report and over 29,716+ more Reports, Available with Avenue Library. Atolla also uses AI capabilities to customize facial serums for consumers by using data collected through quizzes and tests (measuring oil, moisture, and pH levels) that are then processed by the companys algorithm. 2 is Clinique, which is also owned by Estee. 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. The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. 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. Tech companies extensive reach which can include search data, smart home devices, AI capabilities, e-commerce platforms, and more offer compelling opportunities to cash in on the beauty market. These keywords span three vital markets, including skincare, makeup, and hair care. Furthermore, the higher cost of skin-lightening products may hamper product demand. Global beauty industry revenue is expected to top $716 billion by 2025, and online sales are projected to make up 48% of all beauty sales by 2023. 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. 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. Amazons dominance in ecommerce SEO is, of course, well known. Gender-neutral makeup lines are the next step in inclusive beauty, as younger generations erode traditional gender norms and stigmas. Thank you for contacting us, our sales representative will get in touch with you shortly! Its especially important for ecommerce and direct to consumer (DTC) brands that dont have physical retail locations. MAC PRO | MAC Cosmetics - Official Site Overall, the No. Based on product, the market is segmented into powder, gel, lotion, and others. For example, D2C cosmetics brand. During the pandemic, lockdowns and emergency measures hampered the supply of raw materials to the market. Sephora Accelerates 2021 cohort will also only include founders of color. Incumbent brands including MAC Cosmetics, Tom Ford, Gucci, and Marc Jacobs have all launched gender-neutral lines across makeup, fragrance, and clothing as well. Source: Alizila. 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. By product, the powder segment is expected to dominate the market in terms of revenue throughout the forecast period (2022-2029). PDF How COVID-19 is changing the world of beauty - McKinsey & Company Baby care brand Mini Bloom was launched in December 2020. Even informational content in the middle of the funnel can grow brand awareness with new prospective 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. Looking forward to work together in the future, It has been a delightful experience working with you guys. Beauty trends come in cycles. 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. The cosmetics industry has been segmented on the basis of category, gender, distribution channel, and region. As the trend continues to gain traction, understanding the difference between niche and underserved audiences remains crucial, as there exist many demographics with untapped potential. Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. 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. LOral acquired a minority stake in Gjosa in March 2021. 2023 Allied Market Research. The report includes analysis of regional as well as global cosmetics market trends, key players, market segments, application areas, and cosmetics market growth strategies. 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. For instance, they understand what works best for Asian skin. Based on distribution channel, the market is segregated into supermarkets & hypermarkets, exclusive brand stores, online/e-commerce channels, and others. LOral, for instance, has credited its diverse pricing strategy for enabling it to absorb even severe market conditions like in 2020.. Coming out of the pandemic, as economic recovery looks different for consumers with different wallets, there is opportunity at multiple price points. 2020 was a redefining year for every industry including beauty. Branded communities are the wave of the future, and smart beauty brands will make them a priority. 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. For better delivery of our new release, Please help us undestand your interest Industry and Frequency that you prefer to get the new releases. The major currents trends will shape the market in the positive side. Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. This is a very good piece of work and will be very helpful to us going forward. For example, heres the top five ranked websites in the moisturizers sector of the beauty industry (informational searches vs product searches). As consumer values and expectations shifted, big beauty corporates and startups alike have been forced to adapt. Perhaps more than any other industry, the beauty industry is associated with influencer marketing. But the benefits of personalization, including serving those missed in mass-market product offerings, will push brands to strike a balance between preserving privacy and innovating for new revenue streams. For instance, creating and promoting engaging content across multiple channels helps beauty companies increase brand awareness and create authentic relationships within their audience.