Livestreamer Jiaqi Li promoting beauty products on Alibabas platform. Many are addressing personalization with a variety of different technologies and approaches, such as: AI also presents a big opportunity for brands looking to further personalize processes, especially in areas like skincare analysis. Remarkable job and great efforts by your research team. 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. LOral confirmed its position as the global beauty leader once again this year. Lack of representation reaches beyond foundation shades and marketing. Furthermore, indie brands often succeed in the areas beauty corporates dont, namely niche categories, targeted distribution, and social media prowess. 2020 2021/2020 2019 2020/2019 2018 2019/2018 2017 2018/2017 CAGR; . Pinatel says definitely; MAC has seen a three-fold increase in virtually trying on makeup. Investing in SEM allows beauty brands to show up at the top of search results for important keywords. Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. Custom printing, in which companies formulate products specifically for each user. Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. Ultimately, AR is no longer a gimmick, but a proven technology integral to beauty shoppers experiences, both online and in the store. In-depth analysis of the cosmetics market segmentation assists to determine the prevailing market opportunities. Since first establishing itself as a go-to provider of AR for beauty tech in 2017, the Taiwan-based beauty company has expanded its virtual try-on offering, leveraging 3D face AR technology to let users virtually test an array of makeup products. 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. Ingredient transparency and nontoxic options will be crucial for this category to see sustained growth. 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. the global market value of natural cosmetics is projected to hit $50.5B by 2027. In addition, growth in consciousness about external beauty along with individuals internal intellect has become one of the major driving factors for use of cosmetics in the global market. 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. Manufacturers are changing their product branding and advertising strategies to accelerate their sales across various countries. The segments of cosmetics market are category, gender, distribution channel, and region. Nielsen notes that 92% of people trust recommendations made by friends or family more than any other advertising. 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. Companies targeting this space include early-stage startups Ilia Beauty, Saie, and Revolution Beauty. Covid-19 caused interest in categories like makeup which was already falling to further wane as consumers had fewer social engagements. Because they invest in high-value content thats relevant to consumers. Many key manufacturers such as L'Oral S.A., Este Lauder Companies, Honasa Consumer Private Limited, and others in this industry also shifted their production toward natural cosmetic products. Gender-neutral makeup lines are the next step in inclusive beauty, as younger generations erode traditional gender norms and stigmas. This is also considered a marketing strategy for many bog beauty firms for brand building and market acquisitions. However, chemicals used in manufacturing of cosmetic products can harm an individuals skin or other parts of the body. Rewind: Read our breakdown of 2020-2021 beauty sales. A. Mac Cosmetics is partnering up with the Whitney Houston Estate to launch a makeup range. Join 840,000+ CB Insights newsletter readers. Lets look at some key drivers. Soothe connects customers with on-demand massage therapists who offer deep tissue, sports, and prenatal massages, among others. In 2021, the global market value stood at USD 40.37 billion. U.K., Germany, France, Italy, Poland, and Spain are the prominent markets of . These generated 832,980 impressions and reached 314,170 users. However, because of their flexibility, convenience, and opportunities for personalization, at-home spa services likely arent going away. This shift is accelerating as government regulation in the EU and select US states pushes CPG companies toward adopting more sustainable alternatives. 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. For example, the Group Skincare Aware within the Beauty Insider Community has more than 460,000 members with more than 16,000 unique conversation threads. 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. For example: Below, we look at where big tech and beauty are colliding. Macerich stock price target cut to $11 from $30 at J.P. Morgan. In makeup, Amazon ranked slightly better in position five. Governments imposed lockdowns and shutdowns of retail stores, affecting retailers as the epidemic spread across the globe. The collection includes MultiDew Skin Tint and Soft Radiant Bronzing Powder. When we compared informational vs transactional searches, online publishers really pulled ahead. Baby care brand Mini Bloom was launched in December 2020. In addition, application of cosmetic products on a daily basis could be dangerous for skin. Due to lockdowns in some countries, import and export activities became difficult and the demand also dropped, affecting market expansion. The service also works well for customers purchasing products they already know and love. On the basis of distribution channel, it is categorized into hypermarkets/supermarkets, specialty stores, pharmacies, online sales channels, and others. Thank you!, I recommend Fortune Business Insights for their honesty and flexibility. Social commerce already accounts for almost 12% of online sales in China . Set in relation to the 13% usage share of the brand, this means that 85%. 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. 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. The global makeup market size was valued at USD 40.37 billion in 2021. Read our deep dive into SEO vs SEM here for a more thorough comparison. CeraVe, e.l.f. Investors have backed companies in this space such as skincare supplement startup Moon Juice, beauty-focused vitamin provider HUM Nutrition, and Nutrafol, a company offering supplements for thicker hair growth which has raised $36M from investors including Unilever. While this type of content marketing is relatively new, its going to be increasingly important this year and coming years. Final Thoughts. With the flourishing fashion and entertainment industry, the demand for latest cosmetics is increasing significantly. Accessed May 01, 2023. https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states, Statista. The Asia Pacific region, including China, has the biggest cosmetics market share, at 46%, followed by North America at 24%, and Western Europe at 18%. The truth is, online publishers and informational sites significantly outperform established beauty brands like LOral, Procter & Gamble, and Este Lauder Companies. 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 Individuals can share tips and tricks with one another, help solve problems, and make recommendations based on their personal experience. During the survey, the questions were phrased as follows: Dior J'adore evaluation in the United States 2015, Gucci by Gucci evaluation in the United States 2015, Giorgio Armani Si evaluation in the United States 2015, To download this forecast you need one of our Business Solutions. However, a lack of US regulation regarding terms like natural and clean has led to some confusion about their meaning. 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. Gen Z-focused brands such as UK-based Plenaire and Bubble have also been on the rise. Terakeet analyzed 915 of the top keywords in the skincare market, representing 26.52 million annual U.S. searches. Based on our analysis, the global market exhibited a decline of 14% in 2020 as compared to 2019. Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. Beauty Chef, a startup that has raised $6.8M, is already marketing its products by linking beauty to gut health. Jun 30, 2021. These are a relatively new marketing strategy that work especially well for the cosmetics industry where personalization is important. Ingestible beauty is one wellness area gaining traction. 18, 2020 at 6:46 a.m. Chart. after the death of one of the founding Franks, they bought the remaining share. In addition to scoring an amazing discount, MAC Cosmetics fans will still . Biotechnologies are increasingly impacting the production of beauty ingredients. Amazon has made major strides in expanding its beauty retail channel. Show publisher information The cosmetics industry has an annual growth rate of 4.75%. The role of the physical store is still important, but its focus has shifted to experiential retail. Allure and Byrdie rank first and second, and their websites attract between 60 and 80 million organic search visitors overall each year. Beauty Brands Focus on Acquisitions to Expand Product Portfolio. Overall, the No. Hence, such changing lifestyles, have led to growth of the global cosmetics market. According to perspective of top-level CXOs, innovation is the key for growth of the cosmetics market, in terms of value sales. This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cosmetics market analysis from 2019 to 2027 to identify the prevailing market opportunities. Major opportunity exists in meeting the needs of cohorts beyond the young adult (ages 18 to 35) segment. Beauty brands are increasingly learning how to use social media channels for actual sales. For example, Glamera, which offers on-demand spa and makeup services, is based in Egypt. At-home devices, which can measure user conditions, like the emergence of dark spots or surrounding environmental concerns, on a daily basis. Aug 24, 2022. Traditional brands and beauty retailers are losing ground on product-related searches as well, when consumers are actively looking to purchase. The Innovation Lab in Queens Center is not the brands trial run. Use of cosmetics by men is expected to eventually increase and in turn supplement growth of the global cosmetics market. Large key companies across the globe focus on developing sustainable face products that are safe for the environment. Currently, you are using a shared account. Meanwhile, Facebook-owned Instagram has become a strong retail force within the beauty industry. Collectively, all strategies adopted by manufacturers drive the global cosmetics market. Regular makeup use is harmful for skin as it breaks the skin's protective layer.

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