How have your own beauty routines changed this past year and a half? If you are looking for more ways to live an eco-conscious lifestyles, then check out our complete guide here. 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. Reuters referenced an Orbis Research figure estimating the global cosmetics market to be worth around $$805.61 billion by 2023.. and you know what type of ingredients you need, then you can very quickly navigate toward the essential-oil aisle, then the container aisle, et cetera, and get everything you need. The definition is rather broad, and means the publication and distribution of content across all platforms. Only three of the top ten are beauty retailers. Since the COVID-19 pandemic, use of the tool has exploded, with millions using it to virtually test different products. Major beauty brands including Este Lauder, L'Oral and Deciem were also supporting this push and the British Beauty Council was looking for beauty professionals to become STEM Ambassadors in 2023 and beyond. Download our beauty industry report below for more beauty industry insights. High Beauty is a skincare brand founded in 2018 in the Western US (North Carolina) that provides Cannabis sativa seed oil-based products which are free of psychoactive substances like THC and even CBD. The beauty industry encompassing skin care, color cosmetics, hair care, fragrances, and personal carehad a beast of a year in 2020: sales of color cosmetics fell by 33 percent globally, while overall retail sales in the beauty category declined by 15 percent. Find your information in our database containing over 20,000 reports, Find a brief overview of all Outlooks here, Tools and Tutorials explained in our Media Centre, main product categories of the cosmetics market, L'Oral was the leading beauty manufacturer in the world, leading personal care brand worldwide, L'Oral Paris, most popular beauty content creator on the video platform YouTube. Sophie Marchessou: Its important to define what it is, as a retailer or beauty brand, that you want to stand for and what consumer experience you want to provideand stick to it. Monica Toriello: You expect some stickiness in e-commerce and digital channels: youve said that digital channels will gain more than 15 percentage points of share globally, meaning some of the dollars that consumers used to spend on beauty products in stores, whether thats department stores or drugstores, will instead be spent on digital channels. 59% of consumers believe that their personal care products are unsafe, 4. Social media marketing is essential for beauty companies, but choosing the best platform depends on the brands target audience. So, while e-commerce sales have shown the . It's unclear whether teens are wearing less makeup or just spending their money on experiences at the expense of fashion and cosmetics. Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. They believe organic products are more beneficial to the skin. Harvard Business School Spreadsheet Supplement 221-710, April 2021. ", "Farfetch: Digital Transformation for Luxury Brands. Inclusivity is also playing an increasingly important role in the beauty industry. Im curious to hear your predictions about postpandemic beauty. The beauty industryencompassing skin care, color cosmetics, hair care, fragrances, and personal carehad a beast of a year in 2020: sales of color cosmetics fell by 33 percent globally, while overall retail sales in the beauty category declined by 15 percent. These employees are cosmetologists, barbers, hairdressers, manicurists and pedicurists, and skincare specialists. This case examines the career of Vicky Tsai, the creator of San Francisco-based TATCHA, a Japanese-themed luxury beauty brand launched in 2009. Emma Spagnuolo: The biggest thing that I would advise all of my beauty retailers to focus on is capturing and leveraging data and customer relationship management. Contact Now. Also, some people dont like the in-store interaction. (Revised January 2022.). Of the many beauty trends that have contributed to a rise in demand for cosmetics, eye makeup is a major . It is estimated that the cosmetics and personal care industry brings at least 29 billion in added value to the European economy annually. Find out which beauty brands are winning the Google organic market share wars (and which ones are not). Paid search is effective when you need to appear in the Google search results quickly or for specific short-term campaigns. The emergence of the cosmetics industry was to create and market different beauty products to meet consumers' needs. The markets volume is expected to rise to 109.6 million unitsshow more content and fun, and most importantly, is able to speak to very different customer segments, all in one store format and layout. Valued at an impressive $532 billion industry in 2019, it can seem intimidating to get your foot in the door of such a saturated market for many upcoming and less established brands. More than 50% of women prefer natural-labeled products LOral has been a pioneer in social commerce through the years, including livestream shopping. The sales of hair clippers skyrocketed by 362.6% during the pandemic, 8. The average woman will spend over $225,000 on skincare alone throughout her life, 3. What Im seeing from this particular retailer, however, is that it has really made an effort to create an engaging store experience that brings in consumers, educates them, provides them with the opportunity to shop unencumbered, but then also has beauty consultants available if they need help. Once at the center of the American economy, the state of West Virginia had seen decades of decline as its coal industry fell on hard times. 17% of women stopped wearing makeup during the pandemic, 7. But if you put that in perspective and compare it to other consumer categories, its fared a lot better. But its an important consideration for companies to decide whether they want to speak to that market, and [what is] the best way to do so. When it comes to beauty content marketing, the skys the limit. The beauty industry is one of the biggest sea polluters, 7. Jinfeng (David) Huang founded Yatsen Holding Limited in 2016 and launched the first direct-to-consumer (DTC) cosmetic brand, Perfect Diary, in 2017. There are, depending on your customer targets, features that might be more or less relevant, so its not about going after the gimmicky things and having technology enhancements in the store just for the sake of having them. Thats about one lipstick every 15 seconds! Social selling and livestream selling are huge in Chinaand other Asian markets but havent quite taken off in North America and Europe. Nielsen notes that 92% of people trust recommendations made by friends or family more than any other advertising. "Revlon: Surviving Covid-19." Women in the US spend around $3,756 on cosmetics annually. By October 2017, Procter & Gambles skincare brand Olay has been struggling with declining sales for several years. While the companys stock price and market valuation had fluctuated since its IPO in 2018, it had Gupta, Sunil, Jill Avery, Elena Corsi, and Federica Gabrieli. But as growth has remained strong for beauty, it has slowed following the re-openings of physical stores across the country. Animals often suffer from harmful allergic reactions that leave them in considerable pain and suffering. When we zoom in on the skincare market (which includes lotions, creams, moisturizers, anti-aging serums, and cleansers), the top four performers are publishers rather than skincare brands. But Im probably brands and retailers favorite customer right now. Theyve done a very nice job of staying on top of the trends. When we compared informational vs transactional searches, online publishers really pulled ahead. All Rights Reserved. . "First Aid Beauty." Its a differentiated picture by geography. Brand representatives can also interact with group members, answering questions, addressing any problems that arise, and even getting feedback on various topics. In addition to great content and SEO, these publishers also have strict editorial standards and publish expert advice, including reviews, hair, product, and makeup tutorials. Sophie Marchessou: My guess would be that it will be a pretty substantial channel and way of selling, because it goes back to this desire for a personal recommendation, a personal touch and interaction, which consumers are increasingly favoring. Because they invest in high-value content thats relevant to consumers. But, what is content marketing? Few forms of brand marketing are more effective than Word of Mouth (WOM). 11 billion is contributed directly by the manufacture of cosmetic products and 18 billion indirectly through the supply chain (Eurostat 2015). But weve seen it recover superfast in China, and were seeing a fast acceleration in the US as things are getting back to normal. With an ever-increasing percentage of the buyers journey happening online, beauty brands must have a clear digital marketing plan. The cosmetics industry has an annual growth rate of 4.75%. Industry Expertise. However, when it comes to marketing strategies . The global beauty and cosmetics industry has grown tremendously over the years, and so has its marketing potential. But in your experience, are there things that companies should be doing that theyre still not doing on the digital front? Other problems associated with the drop in sales in the beauty and cosmetics industry include the closing down of salons and physical stores, which also led to many makeup artists and hairstylists losing their jobs. All spectrums of inclusivity are super important, whether its men or other ethnicities, or even older consumers who still feel young and are looking for younger brands. Hair clippers went up by 362.6%, hair developers (190.6%), root touch-up (182.3%), hair bleach (54.9%), and hair masks (50.2%). Certain brands will benefit by working with mega influencers and entrepreneurs like Huda Kattan, Nyane Lebajoa, or James Charles. Please do not hesitate to contact me. Over the past two years, the e-commerce market for beauty products has continued to grow, fueled in part by the rise of newly emerging e-commerce markets where the segment is a major driver . Searches for "men's skincare" are up 103% over 10 years. So, where do some of the top beauty brands and retailers rank in terms of organic search market share? While it had been struggling with high levels of debt before COVID-19, the pandemic had caused it to go further into debt. By combining its Beauty Board, Beauty Talk, and Ratings and Reviews, Sephora has nurtured a cohesive and immersive environment for its customers. Up from $483B in 2020 to $511B in 2021 and with an annual compounded growth rate of 4.75% worldwide it's predicted to exceed $716B by 2025. Founded in 1963 by Mary Kay Ash, Mary Kay was a direct sales company whose Independent Beauty Consultants purchased its beauty and cosmetics products at Ofek, Elie, K. Shelette Stewart, and Julia Kelley. Amazons dominance in ecommerce SEO is, of course, well known. 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. Are you interested in testing our corporate solutions? Our R&D programmes delve into all imaginable aspects of beauty and well-being, from investigating consumer behaviour and beauty aspirations, the biology of skin, hair, teeth and oral cavity, to new innovative technologies and bettering sustainable development methods. Sophie Marchessou: Early on, companies were able to pick and choose. Are you foreseeing a beauty boom? Directly accessible data for 170 industries from 50 countries How much is the beauty industry worth? The organic and natural beauty product market is estimated to hit $54 billion in 2027 With an approximate annual growth rate of 6-8%, the natural cosmetics market is estimated to increase its revenue to $54 billion by 2027. To put it into perspective, in 2022, the beauty & personal care market is expected to generate $564,438 million in revenue. L'Oreal is the most prominent name in the industry, making $34.4 billion in 2019 alone. We work with emerging, growing and established fragrance, beauty, fashion and lifestyle brands, providing customized brand development services, including creative storytelling, brand identity, olfactive guidance and trend curation. When we zoom in to examine 109 product-related keywords within the Skincare market (which represent 4.64 million annual Google searches in the U.S.), six of the top 10 Google search results are publishers or blogs. Across the skincare queries that Terakeet examined, Amazon ranked eighth in organic market share. But, why is the beauty industry growing? That makes a big difference. The deal more than doubled Natura's revenues to over $7 billion and cemented its position as Latin America's biggest Trelstad, Brian, Pedro Levindo, and Carla Larangeira. This adds up to almost $4,000 per year. . Branded communities are the wave of the future, and smart beauty brands will make them a priority. The beauty and personal care market will hit a jaw-dropping market size of $716.6 billion by 2025. Here, you can ask questions, get tips, join challenges, receive recommendations, etc. Embellished looks have been on the rise ever since "Euphoria" first hit HBO in 2019, and the trend is only continuing to gain traction. Harvard Business School Case 121-046, March 2021. Skincare is the second-largest branch of the beauty industry, 2. She started her career at US-based retailers Abercrombie & Fitch and Bloomingdales, and she joined McKinsey about six years ago. 120 billion plastic cosmetic packagings is produced annually. Emma Spagnuolo: One of the retailers that Ive been really excited about lately comes from the department-store channel. Although COVID-19 shifted consumer shopping behavior patterns within the beauty industry, theres no doubt that the industry will continue its current growth trajectory. Think about that. Consumers today want that live interaction. The annual total revenue is expected to top $716 billion by 2025. According to the research, products for skin care, hair care, and fragrances are the most-sold products online. With the average revenue per capita of around $74.81. Statistics about beauty indicate that 50% of women prefer buying products with hypoallergenic formulations, 40% purchase products free of artificial additives, and 48% instead use 100% organic products. "Natura: Weathering the Pandemic at Brazils Cosmetic Giant (B)." Lets start with a very simple question. For example, youll get your initials or some sort of personalized touch on your product, which makes it feel more authentic and more special to your needs. 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. the indian cosmetics industry is defined as skin care, hair care, color cosmetics, fragrances and oral care segments which stood at an estimated $2.5 billion in 2008 and is expected to grow at 7%, according to an analysis of the sector.today herbal cosmetics industry is driving growth in the beauty business in india and is expected to grow at a The US cosmetic market is worth a staggering $62.46 billion. Sustainable Beauty Industry Stats 1. So you could imagine that some of the platforms that you have in China could be replicated in the US. Promote Your Cosmetics with Video Content. As a result, many ecommerce and direct-to-consumer (DTC) brands saw an increase in sales due to the pandemic because millions of people had to shop almost exclusively online. According to the estimations, the global beauty market will have a decline of 20%-30% due to the pandemic. The beauty and cosmetics industry is rising to meet consumer demand by following the practices listed below. Hair products witnessed a massive increase in sales during the pandemic. And even among more product-focused searches, informational websites like Allure, Good Housekeeping, and Byrdie performed well. 3 Like many other industries, the beauty industry was rocked by the COVID-19 pandemic. How big is the beauty industry? The beauty and cosmetics industry in Kenya Cosmetics, Perfumes & Toiletries East Africa The beauty and cosmetics industry has become Kenya's new hub of investment that is pulling in big money to establish new lines of business and to snap up successful enterprises through multi-million-shilling acquisition deals. Walker, from the cotton fields of Louisiana to the head of a successful, nationwide beauty company providing opportunity and hair care products to Black women. Are you looking for the safest beauty products? If you are a die-hard DIY customer Emma Spagnuolo: I would just advise everybody to think about: What is the next leapfrog step in digital and in e-commercethat makes you uncomfortable, that you think could never happen in a million years? Here are some of the most important online beauty industry marketing trends to watch. The numbers don't measure up to the strong growth of . Beauty brands are increasingly learning how to use social media channels for actual sales. According to cosmetic industry stats from 2019, the FDAs restriction list contains only 11 of the compounds that are proven to impact the skin adversely. Selling on Amazon allows brands to reach millions of consumersbut that exposure comes with costs. 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. Farfetch, a global luxury technology platform and digital marketplace had been surfing the wave of digital transformation in the luxury fashion industry since 2008. In October 2018, fashion, wellness, and beauty retailer Sylvarella implemented a Buy Online, Pickup in Store (BOPS) program in an attempt to counteract a sales decline. Are there any beauty retailers that are doing or experimenting with amazing things in stores right now? Many sunscreens contain harmful chemicals such as Oxybenzone and can enter aquatic waterways through swimmers or runoff pollution. Beauty and personal care revenue have reached US$2.421 billion in 2020 and the market is expected to grow annually by 5%. Second, entrepreneurs engaged in the creation of industry associations which could advocate, as well as give the nascent industry credibility and create standards. Were pretty bullish about the next few years being much more exciting for color cosmetics. Hi, I hope you enjoyed reading this article. Here's our top 9 cosmetic marketing strategies you can act on to grow your brand! Even major brands took a hit: Coty (owner of CoverGirl and Rimmel) saw its share price drop 52% at the end of March, while Ulta Beauty 's stock saw a 29% decline though both have . New York, New York. The evolution of the cosmetic industry will be highlighted. Emma Spagnuolo: Since we started doing our generational research in 2016, weve been seeing a simmering belief and willingness to pay for more sustainable products. The skincare industry is rapidly growing and is currently the second-largest branch of the beauty industry. Its a fun way to engage the consumer and to create a product for them that they feel is uniquely theirs. The market for men's skincare products was worth $12.34 billion in 2021 and is forecasted to grow to $18.92 billion by 2027. Most of which are untested safety-unproven chemicals. "As we have seen in other industries including apparel and footwear, beauty's online sales growth accelerated amid the brick-and-mortar closures this year. Clicking on the following button will update the content below. On todays episode, well be discussing some important trends in the beauty industry, one of which is the growth in unisex products and mens products. Download Terakeets Beauty Industry Report to see which brands are winning (and losing) in Google organic search market share. In Europe, though, the European Cosmetic Commission disallows the use of 1623 substances. As a young single mother, Mary Kay had to overcome many obstacles to start her business and guide it to success. Hence, this paper will focus on the elements that have shaped the personal grooming industry, into what it is today. Nov 17, 2022 In 2020, the global cosmetics market decreased by over 19 percent in comparison to the previous year. Its a very interesting example of a retailer thats innovated With the global beauty industry value being estimated around US$265 billion by 2017, it is evident that the cosmetic industry is a successful one. Skincare specialists: 55,000 in 2014 with a 12% expected growth by 2024. These are a relatively new marketing strategy that work especially well for the cosmetics industry where personalization is important. Historically, the lions share of beauty products have been purchased in-store, such as department stores, drugstores, and specialty shops. They simply lack the SEO strategy and long-form content needed to compete effectively in Google. Manicurists and pedicurists: 113,600 in 2014, 10% expected growth by 2024. However, they still lag behind many publishers, blogs, and even health-related websites, depending on the type of keyword. However, even Amazon has challenges competing in various beauty market sectors. Well talk about the business side of things. The case describes how Urban Company is an India-based market platform that helps customers book home services and at home beauty services. Every day, the average woman uses 12 products per day containing over 168 ingredients, a man uses six products with 85 ingredients, a child is exposed to 5 products with 61 ingredients, while a teenage girl uses 17 products with over 230 ingredients every day. And the top five websites hold 40% of the total organic search market share. Perhaps more than any other industry, the beauty industry is associated with influencer marketing.
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