. In the midst of the Covid-19 pandemic, spa and salon appointments have looked quite different if they are available at all. A look at how skincare valuation multiples are faring. Plus, keep in mind that roughly 70% of the clicks in Google go to the organic listings. Currently, you are using a shared account. Propelling this growth were the 4.7 million non-prestige beauty shoppers who have begun purchasing in the prestige category. Jun 30, 2021. These are a relatively new marketing strategy that work especially well for the cosmetics industry where personalization is important. hbspt.forms.create({ If you are an admin, please authenticate by logging in again. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. A. Asia-Pacific region holds the maximum market share of the cosmetics market. Inclusivity is also playing an increasingly important role in the beauty industry. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. Its never been faster to launch or grow a new brand with the proliferation of beauty incubators and growth of e-commerce and D2C channels. Download Terakeets Beauty Industry Report to see which brands are winning (and losing) in Google organic search market share. Nestl, for instance, acquired a majority stake in skincare startup Vital Proteins last year. While MAC may have provided the blueprint for the brands that followed, the company hasn't been terribly affected by their competitors' success. It even opened a brick-and-mortar hair salon to showcase its tech. In 2020, Deciem nearly doubled sales to $460M, primarily through its skincare brand The Ordinary, which has developed a strong cult following. Online sales will make up 48% of all beauty sales by 2023, The online channel for beauty in the U.S. grew by 5.6% in 2020, The offline channel for beauty contracted by 1.2% in 2020. These are already being offered by companies like Neom Organics and Aeroscena. Thats why the global market value of natural cosmetics is projected to hit $54B by 2027. But thanks to new on-demand technologies, beauty services are no longer tied to traditional locations. The market of Europe is characterized by the occurrence of various international cosmetic brands in countries such as France, U.K., and others. On the basis of distribution channel, it is categorized into hypermarkets/supermarkets, specialty stores, pharmacies, online sales channels, and others. Moreover, increase in urbanization, rise in working class population, and competitive pricing boosts popularity of hypermarkets in developed and the developing region. Based on distribution channel, the market is segregated into supermarkets & hypermarkets, exclusive brand stores, online/e-commerce channels, and others. Even so, is the practical consumer ready to virtually test their lipstick shades on an AR mirror? Such factors contribute to the growth of the powder segment. 2021 Annual Report. Since then, Western shoppers have clamored for Korean beauty products, with items like sheet masks and snail cream becoming commonplace in beauty stores. Increasing awareness toward personal grooming is accelerating market growth. But, why is the beauty industry growing? 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. 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. Big beauty corporates are also attempting to penetrate new markets, especially in South Asia and Africa. Which is the leading product in the market? Estimated market of more than 200 billion euros, Growth of the worldwide cosmetics market over 10 years (in %), Breakdown of the market by geographic zone (in %), Breakdown of the market by business segment (in %), Growth of the skincare market compared with the global beauty market. "Mac Cosmetics Brand Awareness, Usage, Popularity, Loyalty, and Buzz among Beauty and Health Online Shop Users in The United States in 2022. The goal was to create multiple channels that provide equally satisfying shopping experiences by addressing customer needs and preferences including the desire to limit human contact amid the pandemic and the growing preference for online shopping. Based on our analysis, the global market exhibited a decline of 14% in 2020 as compared to 2019. Videos give people the opportunity to see a product in action, which is particularly important for cosmetics products. The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. These keywords span three vital markets, including skincare, makeup, and hair care. Black dermatologists make up just 3% of the field in the US, which has marked effects on beauty product development. Get insights on topics that are crucial for your business. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive, Please pass on our sincere thanks to the whole team at Fortune Business Insights. A. Often, it can be cheaper to incubate or accelerate new companies (that could serve as potential partners or acquisitions down the line) instead of developing in-house brands. opens in a new window Click Here. In addition, application of cosmetic products on a daily basis could be dangerous for skin. Here, you can ask questions, get tips, join challenges, receive recommendations, etc. Since Fenty Beautys launch in 2017, inclusive beauty has become an industry buzzword, encompassing new demographic markets that are becoming increasingly important for the beauty industry to target. For instance, creating and promoting engaging content across multiple channels helps beauty companies increase brand awareness and create authentic relationships within their audience. Virtual try-on is also available on the Kiko Milano website. Bottom line, beauty brands are missing out on a major opportunity when it comes to organic search traffic. Emerging startups and recent corporate developments here include: Expect to see more major retailers stocking these options in an effort to bring sustainable products under the roof. Brands targeting older demographics will want to focus more on Facebook and Pinterest. Publishers are dominating organically online in the beauty space, and beauty brands and retailers should take note and invest more in SEO and content in order to capitalize on the millions of online searches being conducted each month. Today, MAC has opened the doors of its newest design concept. One powerful trend in influencer marketing is brands building an influencer team. 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. Certain brands will benefit by working with mega influencers and entrepreneurs like Huda Kattan, Nyane Lebajoa, or James Charles. 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. 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. Over the long term, SEO is better than PPC, providing both compounded returns and a much higher ROI. Clean, gender-neutral fragrance company Phlur was acquired by Los Angeles-based beauty incubator The Center in February 2021. 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. However, ingredient transparency doesnt only mean making it clear what ingredients are included, then educating users on how effective they are it also means providing details on the ways those ingredients are sourced and moved. The cosmetics market effecting factor are changing lifestyle and increasing demand for natural ingredients in cosmetic products. Like many other categories, the pandemic has accelerated the beauty industrys shift to e-commerce as brick-and-mortar locations have had to close. Meanwhile, global brands have already rolled out mens cosmetics lines. Beauty trends come in cycles. 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. Get access to the only platform that combines expert-led research with in-depth data on the tech industry. In the US, personal care and beauty online sales totaled a whopping $62.6B last year, up from $53.1B in 2019. In the context of e-commerce growth, social commerce is booming. DNA testing kits, which allow companies to provide product recommendations or create custom products based on users genes. iPads are positioned throughout the store to provide product information and let customers digitally test makeup items. However, an analysis of Google organic search market share in the beauty industry reveals a surprising reality. Get detailed COVID-19 impact analysis on the Cosmetics Market. Ultimately, the ingredient transparency trend will likely go more mass market and global across all consumer products. 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. Is your brand doing what its going to take to win in the future? 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. 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. Asia Pacific and North America account for more than 70% of the total market size, The cosmetics industry has an annual growth rate of 4.75% worldwide, Global beauty industry revenue is expected to top $716 billion by 2025. Instagram is not the only company using video to sell beauty products. 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. At what CAGR is the market projected to grow in the forecast period (2022-2029)? Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. Despite the negative impact of the coronavirus pandemic, the global cosmetics market is expected to recover in the coming years. 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. Share. 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. In addition, the popularity of premium beauty products among women and millennials is driving the makeup market growth over the forecast period. Like many other industries, the beauty industry was rocked by the COVID-19 pandemic. An Infographic Representation of Makeup Market, To get information on various segments, share your queries with us. These generated 832,980 impressions and reached 314,170 users. As the pandemic subsides, customers are undoubtedly excited to return to their favorite spas and salons. Last published date: 2023-04-07 According to Euromonitor International's latest research, sales of beauty and personal care in China reached $88 billion in 2021, a rise of 10% on the previous year. A. Looking forward to work together on similar projects, We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. Because a founder is of color does not mean that their business has to be focused only on people of color, Keenan Beasley, the founder and CEO of beauty incubator Supply Factory Brands, told Glossy. As a result, youll create a stronger bond between your brand and your customers. Glosslab, for instance, has developed a waterless manicure that it offers to clients in its own salons on a membership basis. Certain powders also help to reduce the look of pores and fine lines. Furthermore, the process of growing ingredients in a lab reduces the devastating impacts of farming, fishing, extraction, or the involvement of intermediaries which can drive up the price and carbon footprint of raw materials extracted from the earth in lengthy, global supply chains, said sustainability consultant and All Earthlings founder Sarah Jay in an interview with Coveteur. Going forward, expect a greater focus on the connection between gut health and beauty as the microbiome gains momentum as a wellness topic. This is a very good piece of work and will be very helpful to us going forward. 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. The MAC Cosmetics Black Friday sale. 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. While most analog brick-and-mortar retail is staring at the fate of a video rental store, MAC Cosmetics is taking the virtual road. The company raised a $4M seed round in May 2021. According to DECA, 80% of female teens said they were willing to spend more for clean beauty. Final Thoughts. Youll also need to optimize your video for search so it shows up for the right keywords! Beauty brands from LOral to Smashbox to Benefit Cosmetics offer virtual try-on via tech by ModiFace (acquired by LOral in 2018), while social media platforms like Facebook and Youtube have integrated virtual cosmetics try-on into ads and influencer videos. Although COVID-19 shifted consumer shopping behavior patterns within the beauty industry, theres no doubt that the industry will continue its current growth trajectory. 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. The virtual Shiseido store uses virtual reality (VR) technology to let customers browse the first, second, and basement levels of the flagship location. Our design target for our Sunday II Sunday brand is the multicultural woman, but products are still great for all women, which is where we started at.. Show publisher information Below we outline a few of these markets, which are becoming integral to defining the future of inclusive beauty and that should remain a high priority for brands looking to capitalize. LOral acquired a minority stake in Gjosa in March 2021. We are happy with the professionalism of your in-house research team as well as the quality of your research reports. 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. Face Segment to Dominate the Market Owing to Rising Product Demand. Already, corporates are taking note. Instead, beauty retailers are connecting the customer journey across their online and offline stores to create seamless omnichannel experiences. Voice assistants like Amazons Alexa and Apples Siri present partnership opportunities for big tech and beauty. 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. 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. LOral-owned ModiFace also allows customers to try on makeup virtually. Major opportunity exists in meeting the needs of cohorts beyond the young adult (ages 18 to 35) segment. 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. The dominant players control a large market share because they have well established distribution channels. Companies in the space often promote a feeling good is looking good ethos. These platforms typically include tools for booking and managing appointments, showcasing their work, and accepting payments. What are the product segment? Urban offers on-demand outdoor fitness, osteopathy, and physiotherapy services in addition to massages and nail care. 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. The global makeup market size was valued at USD 40.37 billion in 2021. Aug 24, 2022. It certainly looks that way. K-beauty hit the United States in 2011 when Sephora began carrying Korean skincare brand Dr. Jart+. Several brands are experimenting with biosynthetic ingredients: Beauty conglomerates have been active in developing biotechnology partnerships as well. Increasing Inclination Toward Personal Grooming to Favor Market Expansion. 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. You can see why SEO is incredibly important for beauty brands. 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. By gender, it is divided into men, women, and unisex. CeraVe, e.l.f. 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. A. And new in-store pickup options connect the online and offline shopping experiences. While the technology has existed for some years, the Covid-19 pandemic has solidified virtual try-ons place in the beauty industry, as customers seek personalized recommendations they can try on safely, often while shopping online from their own homes. 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. 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. after the death of one of the founding Franks, they bought the remaining share. The brand also has over 500 stores globally. Even informational content in the middle of the funnel can grow brand awareness with new prospective customers. It launched a private label beauty brand called Belei in 2019 and recently invested in India-based D2C beauty site MyGlamm. Look for brands to continue to develop hyper-personalized offerings in order to differentiate themselves from competitors and cater to consumers more effectively. Total global beauty industry spending in 2020 was $483 billion, and the annual total is expected to top $716 billion by 2025. For example: Below, we look at where big tech and beauty are colliding. 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. Google works with brands to use its search data to better understand beauty shoppers preferences.