The Future of Beauty and Personal Care Industry
The Future of Beauty and Personal Care Industry

Up from $483 billion in 2020 to $511 billion in 2021 and with an annual compounded growth rate of 4.75 percent worldwide, the beauty and personal care market is predicted to exceed $716 billion by 2025 and $784.6 billion by 2027.

The Covid era has seen the termination of premium beauty-product outlets. Further, the lockdown and physical movement constraints have led to a quick and effective shift from offline to online platforms. The shift has been of great advantage to consumers owing to greater accessibility, convenience, and lower prices and is expected to continue.

Evolving Markets

For the brands to continue to remain competitive and have economies to scale, a quick capturing of new consumer expectations being formed and shifting behaviors, and effective response to the evolving market is necessary. 

The development of easy consumer accessible e-commerce, on-click available brand websites, and promotional social media platforms is sure to bring about growth in the beauty industry. Acquisition of new customers and providing a great customer journey to the existing ones can be captured by digitalizing customer approach channels.

Improved Customization

Better and improved testing and customization are sure to loop in more customers. Consumers tend to have a spending bias towards brands that can provide them customized products and in-store experiences at home. 
Brands are putting different technologies and approaches to use to provide a better-customized experience to their customers, such as: 

●    Quizzes - Collect the exact customer preferences, and customize products according to the results. 
●    Custom Printing - Helps make products specifically for each user. 
●    At-home Devices - Measure user conditions and suggest products accordingly
●    DNA Testing Kits - Collect gene information of the user and allow companies to provide product recommendations or create custom products. 

Virtual try-on tech allows shoppers to test how different beauty products will look without actually having to try them on. 

Additionally, with the coming of influencer marketing and user-generated content strategies, consumers are at the forefront from promotion to market research for new products.

Consumer awareness about products has certainly been on an increase. Today's consumers weigh the marketing tactics less and rather attend to the information as to who and what those products aim to serve. Aware consumers now want products that are based on proper science. 

Men's Care and Gender-Neutral Beauty Products

A rather ignored segment of the cosmetic industry is now being tapped by expanding men-targeted cosmetic products beyond face washes, moisturizers, and basic hygiene products to include eye creams, face masks, sunscreen, makeup, and the past few decades. Better packaging and easy accessibility to such products are evident with their increasing numbers and variants coming into the market to attract more new-age customers.

The cosmetic industry is moving towards inclusivity by adopting gender-neutral makeup lines owing to the coming generation's belief in non-binary gender classification. Products not targeting any specific gender are being brought out in the market. Gendered marketing is losing its charm and unisex products made specific to a particular condition and concerns are being rolled out.

Beauty Beyond Age

The cosmetic industry has previously been focused majorly on the young adult segment. A few brands have now started to cater to older consumers. 

Products that focus on menopausal skincare products and address perimenopausal concerns are being increasingly injected into the market.  

Additionally, a marketing campaign featuring women older than the 50s has further led to better accessibility and acceptability.

Waterless Beauty - The Next Trend

The water content of a product can add greatly to its transportation cost owing to the size it has to be packed in. Eliminating water inclusion from product design and then transporting them is an emerging concept across beauty brands. It will help improve operational sustainability. 

Technologies to transform material solutions to concentrates of the active ingredients have started to be put to use. Though the inflow of such sustainable products is found to be increasing, the ultimate impact will depend on how much consumers are willing to change their routines to adapt to these new formats, which may not be as convenient as traditional water-based products.

Clean Beauty

Customers are now demanding greater ingredient transparency to be aware of what goes on in their bodies. A greater focus on natural and organic products has gained traction. Consumers are also realizing that not all ‘natural’ ingredients are good for the body and not all synthetics are bad. Hence brands are more focused on transparency and educating consumers on the ingredients they include or leave out.  

Going ahead, the future of the cosmetic industry seems good but it will have to keep pace with the ever-changing customer demands. The approach should be more customer-centric, providing more personalized products, backed by scientific research. A greater acceptance towards organic and natural products is sure to exponentiate. Inclusivity will lead the cosmetic industry in years to come.

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