The personal care industry is itself undergoing a makeover. The evergreen segment has witnessed many high-profile acquisitions last year. Thanks to the technology and product innovations, the sector is on a roll since virtual try-on and online marketplaces have entered the picture. As per a report, the global skin care products market size was valued at 134.8 billion in 2018. It is now expected to expand with a CAGR of 4.4% from 2019 to 2025 due to the rapidly growing global cosmetics industry. Rising demand for sunscreen, lotions, and face creams is further projecting affirmative outcomes.
According to Zion Market Research, the global beauty industry is pegged to reach $863 billion by 2024. The craze to look flawless is one of the biggest driving forces of the market which, despite being highly saturated, is proving to be one of the best investment bets for market players. However, increased awareness and emphasis on health are driving favorable figures this year.
Here’s how the future of the personal care industry will look like:
‘Hygiene’ to get due attention
With a clear focus on health in the years to come, the industry is expected to move towards hygiene and personal care items. Besides, health experts have repeatedly urged the populace to practice good hand hygiene since the coronavirus outbreak unleashed. The pandemic swelled the sales and prices of hand sanitizers across international markets with demand exceeding supply in the online as well as offline stores. The industry, which was valued at USD 2.7 billion in 2019, is now anticipated to grow at a compound annual growth rate of 22.6% from 2020 to 2027.
Products with natural goodness
Skincare accounts for approx. 45% of the overall cosmetic product’s sales. Going by the survey conducted this May (by digital marketing firm Bazaarvoice and the online product review platform Influenster), two-thirds of the women want greater transparency when it comes to labeling clean products. It reveals a growing appetite for ingredient transparency as people are consistently refraining from using chemical, paraben, and sulfate-laden products. Users are gradually inclining towards brands that are using naturally sourced or plant-based constituents for skincare routines. The reason is that such products do not harm the skin anatomy while providing the power of antioxidant-rich superfoods.
Specific products for millennials and Gen Z
Rather than using the one-size-fits-all strategy, the personal care industry will see a segmentation targeting Generation X, Y, and Z as per their unique needs. Millennials and Gen Zers are trendsetters responsible for steering many revolutionary changes at various stages, be it against single-use plastic or rooting for workplace inclusions. Hence, addressing the skincare woes of this demographic becomes a necessity. We will see different products concocted to suit the distinct skin requirements of both generations.
More emphasis on marketing digitally
By this time, we all know how crucial social media is in bringing visibility and followership for a business. More than half of the world uses social media or networking platforms. Moreover, it allows companies to access precious data that contains information about customers' present buying behavior and preferences. The data enables brands to engineer a product and formulate the right products, campaigns, and messaging to attract or mold consumer’s opinion in favor of their new offering or an ingredient. Hence, we can expect digital marketing to take the lead over traditional forms in the years to come.
Historically, women are seen as the face of beauty products. The trend is likely to change for the good in the future. We might bid goodbye to this era of gender-based biases as grooming is equally important to both the sexes. Today, leading cosmetics companies are roping in male ambassadors to market their products. Dismantling stereotypes, the lines between men and women will blur with the beauty and fashion industry becoming fluid with its approach. So, we may soon not see ‘For Women’ or ‘For Men’ tags below the packaging at all.
Research says that the vegan and environmentally sustainable market is set to reach USD 20.8 billion by 2025 worldwide. Consumers are trying to stay clear of goods that are sourced from unethical means and are embracing cruelty-free and vegan products. In fact, vegan products are gaining popularity because of their superior content.
Technology will be at the forefront of the personal care industry. With AI- and ML-integrated IoT devices being developed, data will take the centre stage in deciding the personal skincare routines for individuals based on their skin analysis. Personalization will rule the beauty industry with sensitive messaging and sans creating the divide based on cultural diversity. The omnichannel approach will seamlessly integrate experience and sales for both customers and retailers. The future of the personal care industry is indeed open, exciting, and rife with new opportunities.