The virtual Shiseido store uses virtual reality (VR) technology to let customers browse the first, second, and basement levels of the flagship location. The challenge remains in scaling up production. As the pandemic subsides, customers are undoubtedly excited to return to their favorite spas and salons. Now, consumers can bring the spa directly to their homes. More and more consumers are using augmented reality when shopping. Because they invest in high-value content thats relevant to consumers. 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. 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. Meanwhile, incumbent brands like Chanel, YSL, and others are revamping their product launch and marketing strategies to attract younger shoppers. The makeup category suffered losses, especially among teens, with Piper Jaffray reporting a 21% year-over-year decrease in spending among that group. 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. As natural beauty ingredients are gaining popularity, the need for natural preservatives is also rising, resulting in research opportunities for organic and natural constituents. For example, in April 2021, private equity giant Carlyle Group took a majority stake in cosmetics company Beautycounter in a deal valued at $1B. AI retail is firmly what he believes is the next frontier. 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. Some options include: Building vibrant online communities is an effective way to foster brand loyalty and increase engagement among customers. 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. Social media strongly influences this generation, with attractive product promotions showcasing newer trends. Hair color brand Madison Reed, which grew sales by 130% and nearly doubled its customer base in 2020, offers live virtual try-on on its website for customers to explore different shades. Strategic B2B Content Marketing: How-to Guide for 2022, What is Content Marketing? In the context of e-commerce growth, social commerce is booming. Certain brands will benefit by working with mega influencers and entrepreneurs like Huda Kattan, Nyane Lebajoa, or James Charles. For instance, in August 2022, Ponds, a beauty brand from Unilever, a British consumer goods company, launched its natural glow face powder which is made from ingredients such as titanium dioxide and zinc oxide that have UV protection properties. 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. Youll also need to optimize your video for search so it shows up for the right keywords! Analyzing a16zs investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? Although MAC inspired countless cosmetics brands, they still retain the largest ecommerce market share in the cosmetics industry, especially in lip products. Glosslab, for instance, has developed a waterless manicure that it offers to clients in its own salons on a membership basis. A. The global cosmetics market size was valued at $380.2 billion in 2019, and is projected to reach $463.5 billion by 2027, registering a CAGR of 5.3% from 2021 to 2027. Cosmetics Market is growing with the CAGR of 5.8% during the forecast period of 2022 to 2029. The kiosks include 90 products across its four major categories beauty, bath & body, face, and hair. Plus, keep in mind that roughly 70% of the clicks in Google go to the organic listings. Will consumers return to stores in the same numbers, or will they continue to buy online? The beauty industry has been awash with incubators in recent years. LOral acquired a minority stake in Gjosa in March 2021. Furthermore, indie brands often succeed in the areas beauty corporates dont, namely niche categories, targeted distribution, and social media prowess. In November 2020, Perfect Diarys parent company, Yatsen, debuted in a $617M IPO on the NYSE. Over the long term, SEO is better than PPC, providing both compounded returns and a much higher ROI. While MAC may have provided the blueprint for the brands that followed, the company hasn't been terribly affected by their competitors' success. LOral, for instance, has credited its diverse pricing strategy for enabling it to absorb even severe market conditions like in 2020.. Read on for a high-level look at the beauty industry, trends that matter, and cosmetics marketing strategies that will create the most success. 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. 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. This indicates that MAC is involved in a lot more conversations than NARS. 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. *Taxes/Fees, if applicable will be added during checkout. 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. As more people research and purchase beauty products online, its critically important for brands in the cosmetics industry to seize the growing opportunity of organic search. More than half of Gen Zers believe that gender is nonbinary and encompasses a spectrum instead. 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. As a Premium user you get access to background information and details about the release of this statistic. And while full-coverage and colorful makeup looks have taken a backseat to home quarantine orders, Mr. Pinatel expects high-glam to come back in a big way post-pandemic. Supply Chain Disruptions Due to the Pandemic Affected the Market Growth. Moreover, use of natural ingredients for manufacturing of cosmetics products, which does not have any adverse effect on skin, is a popular strategy of manufacturers to attract more customers. Think about that. Livestreamer Jiaqi Li promoting beauty products on Alibabas platform. Since then, Western shoppers have clamored for Korean beauty products, with items like sheet masks and snail cream becoming commonplace in beauty stores. 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. 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. Face powder is highly used as a base to apply bronzer, contour, or blush. DNA testing kits, which allow companies to provide product recommendations or create custom products based on users genes. At the same time, consumers are increasingly realizing that not all natural ingredients are good for you and not all synthetics are bad. hbspt.forms.create({ In China, Perfect Diary has become one of the countrys most talked-about beauty brands since launching in 2016, competing with well-known global players like LOral and Este Lauder, even while offering its products at a mass-market price point. Use Ask Statista Research Service. 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. Videos give people the opportunity to see a product in action, which is particularly important for cosmetics products. The Middle East & Africa and Latin America makeup products markets are assisted by the continuous support of the government for skin care product manufacturers to produce products at affordable costs. Increasing Inclination Toward Personal Grooming to Favor Market Expansion. In addition to scoring an amazing discount, MAC Cosmetics fans will still . Rise in demand for various cosmetics products among customers makes way for manufacturers to come up with herbal or organic skin care products along with affordable prices and eco-friendly packaging. Hair care products is where Amazon performed best in Google, with the second highest market share. 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. These keywords span three vital markets, including skincare, makeup, and hair care. Moreover, prolonged exposure to such products results in the continuous deposition of toxic ingredients in body cells that can eventually cause adverse effects. 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. 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. 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. In, Statista. Chemicals used as ingredients in cosmetic products can have many adverse side effects on skin. The rising awareness toward personal grooming along with the expanding number of brands producing a wide range of cosmetic products is favoring market expansion. Meanwhile, Johnson & Johnson has developed a host of personalized skincare systems, ranging from skin-scanning devices such as the Neutrogena Skin360 to 3D-printed face masks through its Neutrogena MaskiD technology. New York, NY 10018. The rising popularity of powder foundations among young users who demand light coverage is driving segmental growth. These platforms typically include tools for booking and managing appointments, showcasing their work, and accepting payments. 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. "Mac Cosmetics Brand Awareness, Usage, Popularity, Loyalty, and Buzz among Beauty and Health Online Shop Users in The United States in 2022. 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. The base year calculated in the cosmetics market report is 2019. CPG incumbents are also making moves. It goes far beyond making sure ecommerce pages are optimized, although that certainly matters. The EU, for example, has a goal of becoming carbon neutral by 2050, and the European Green Deal aims to shift to completely reusable or recyclable packaging by 2030. 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. The role of the physical store is still important, but its focus has shifted to experiential retail. It even opened a brick-and-mortar hair salon to showcase its tech. Excessive use of certain creams and powders and hair coloring products can result in rashes or patches on the skin and permanent hair graying. While some consumers saw an increase in their disposable income during the pandemic, for many shoppers, the economic uncertainty of the pandemic has driven a renewed focus on products that carry more value at cheaper price points. This gives consumers the freedom to go home and research products and reviews online before making a purchase decision. Clean beauty is another business growth area within the beauty industry to watch. Even as restrictions lift, the shift to e-commerce is unlikely to reverse. There is still no [cosmetics] company that has been able to integrate personalization into their business models, Shiseido president Masahiko Uotani said in an interview with the Nikkei Asian Review. In beauty retail, virtual try-on tech serves a dual purpose: combining both augmented reality and computer vision, it allows shoppers to virtually test out different looks, while simultaneously collecting behavioral data for brands. The company offers collagen a protein that helps form skin in products like powders and snacks. Companies are focusing on developing powder based products that also protect the skin other than just enhancing the appearance. Nestl, for instance, acquired a majority stake in skincare startup Vital Proteins last year. Sixty percent of the Google page one rankings for product keywords are for websites that dont even sell skincare products. 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). 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. 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 brand also has over 500 stores globally. Pre-assembled Student Kits are available to purchase through Customer Service . So, where do some of the top beauty brands and retailers rank in terms of organic search market share? As a result, brands are rolling out beauty products that arent targeted at one specific gender. July 12, 2022. A February 2021 PowerReviews survey found that consumers are now 40% more willing to try new beauty products than before the pandemic, and 59% report spending the same or more on beauty as they did prior to Covid-19. Its one of the most effective means of building brand love. The MAC Cosmetics Black Friday sale is an awesome way to get quality makeup at a discounted price point.
