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. Copyright 2023 CB Information Services, Inc. All rights reserved. Both companies raised funding in Q320. These keywords span three vital markets, including skincare, makeup, and hair care. I appreciate the timeliness and responsiveness of you and your team., (applicable to 1 report only for the same license type). Labor shortages in factories and logistics operations due to the pandemic continue to have a serious impact on supply chains around the world. Customers can also use technology throughout the store to get product information, digitally test items like skincare products, and find personalized recommendations by taking quizzes. On the business front, using ingredients that are mined or farmed introduces potential supply chain volatility, given the quantity of vendors, farms, and fisheries that have to be involved in supplying ingredients, while synthetic ingredients are made in more controlled environments that can offer consistency. The U.S. Accounts for Over 27.1% of Global Market Size in 2020, While China is Forecast to Grow at a 9.9% CAGR for the Period of 2020-2027 The Color Cosmetics market in the U.S. is estimated at US . Unilever, LOreal, Avon, Oriflame Cosmetics AG, Revlon, Inc., Coty Inc., The Estee Lauder Companies Inc, The Procter & Gamble Company, Kao Corporation, and Shiseido Co. Ltd are the leading players worldwide. Ingestible beauty is one wellness area gaining traction. As soon as this statistic is updated, you will immediately be notified via e-mail. What are the product segment? 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. The company invested in Curie Co, a startup that makes biomaterials to replace preservatives in everyday beauty and personal care products, through its JLABS incubator. The rising concern about skin problems due to wearing makeup has affected the global demand, with the use of beauty products with chemicals resulting in acne, breakouts, and other conditions. 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. This indicates that MAC is involved in a lot more conversations than NARS. Each in-store experience is based on community and a feeling of hyper-local branding. This shift is accelerating as government regulation in the EU and select US states pushes CPG companies toward adopting more sustainable alternatives. What will the next few years look like for the beauty industry? A variety of cosmetics are available in powder form, whether as loose or pressed powder, such as face powder and powder foundation. Beauty brands such as Unilever, Este Lauder, LOral, Glossier, and Clinique are nearly invisible in the non-branded organic search landscape across skincare, makeup, and hair care. The goal was to create multiple channels that provide equally satisfying shopping experiences by addressing customer needs and preferences including the desire to limit human contact amid the pandemic and the growing preference for online shopping. 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. For example, Hims & Hers offers telehealth consultations and prescriptions for a broad array of health issues ranging from infections to mental health, but its services also extend to anti-aging creams and haircare products. Get access to the only platform that combines expert-led research with in-depth data on the tech industry. Very satisfied with the overall report as it has helped me to build strategies for my business, This is regarding the recent report I bought from Fortune Business insights. Refill models are being embraced across different beauty verticals. Jun. Below we outline a few of these markets, which are becoming integral to defining the future of inclusive beauty and that should remain a high priority for brands looking to capitalize. Moreover, cosmetics products have witnessed prominent adoption in the developing countries such as India, owing to swift change in consumer lifestyle, increase in disposable income, and surge in need for cosmetics products derived from natural extracts. Meanwhile, Coral is creating a fully automated device that provides at-home manicures. Companies that provide business-to-business (B2B) booking and on-demand platforms for salon and spa services account for 12% and 11% of deals in the industry, respectively. Biotech ingredients-as-a-service company. Lack of representation reaches beyond foundation shades and marketing. Looking forward to work together in the future, It has been a delightful experience working with you guys. 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. Think about that. 2022 Annual Report. Similarly, they need to keep pace with effective marketing strategies such as more advanced beauty influencer marketing and branded communities. Pandemic disrupted the entire world and affected many industries. As the emphasis on ingredient education grows, brands are also shifting toward ingredients backed by scientific methods or endorsed by doctors and clinical professionals to prove safety and efficacy. The industry has recently observed an emerging trend of men using cosmetic products in their daily lives. Based on application area, the market is segmented into lips, eyes, face, and nails. Itll be a lasting trend. Asia Pacific Makeup Market Size, 2021 (USD Billion), To get more information on the regional analysis of this market, Request a Free sample. Many in-store cosmetics brands have tried virtual experiences like shade-finders, and have ultimately failed perhaps due to half-heartedness. More than half of Gen Zers believe that gender is nonbinary and encompasses a spectrum instead. 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. In addition to its traditional e-commerce site, it also sells beauty products on its Amazon Fresh and Whole Foods online grocery platforms a distribution channel that received a major boost during the pandemic and presents an opportunity for Amazon to cross-sell beauty products alongside consumers regular food orders. Virtual try-ons are not new. Thank you Fortune Business Insights for your efforts and prompt response, I had a great experience working with Fortune Business Insights. Sephora has been testing a pilot recycling program in Utah and Colorado since 2019; no expansion plans have been announced. The Perso app crunches data on a users skin condition via an uploaded selfie, environmental conditions via location data, and user-inputted skincare concerns to dispense custom formulas through the device. The beauty category, while not recession-proof, has fared better than many other discretionary categories in economic downturns, reflecting the relatively low price point and the connection with the product Engagement with the beauty category remains strong, despite the uncertainty many guests are experiencing today. Ulta CEO Mary Dillon, Q120 earnings call. The highly visual nature of the beauty industry makes video marketing a critical strategy for brands. the media outlets selected for the campaign are highly relevant to the market base. Companies that sell clean beauty products can expect to see a surge in demand moving forward. However, in 2020, MAC Cosmetics . In the midst of the Covid-19 pandemic, spa and salon appointments have looked quite different if they are available at all. Such factors contribute to the growth of the powder segment. Here, you can ask questions, get tips, join challenges, receive recommendations, etc. 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 . The segments of cosmetics market are category, gender, distribution channel, and region. Among its alumni are gender-neutral makeup line, Inter Parfums subsidiary bought a 25% stake in France-based fragrance company. Companies are focusing on developing powder based products that also protect the skin other than just enhancing the appearance. DOWNLOAD THE FULL REPORT BELOW The company offers collagen a protein that helps form skin in products like powders and snacks. Beauty hasnt historically been a key focus area for big tech, but these giants will inevitably continue to extend their influence in the sector. With the rise in skin problems due to chemically contained cosmetics, people shifted toward more natural and organic products. The Colorado-based beauty brand emphasizes ingredient transparency and restricts over 1,800 ingredients in its formulations (compared to the 30 restricted by US regulations). Moreover, how are online sellers capturing market share from brick-and-mortar retailers? The products are available on both online and offline platforms. Similarly, cosmetics brand Kiko Milano opened a concept store in Italy in 2016 featuring in-store technology from Mercaux. The definition is rather broad, and means the publication and distribution of content across all platforms. The report covered all the points and was very detailed. The makeup category suffered losses, especially among teens, with Piper Jaffray reporting a 21% year-over-year decrease in spending among that group. Perfect Diary remains focused on targeting lower-tier cities, where customers may be less accustomed to the beauty market and more open to trying out new brands. However, chemicals used in manufacturing of cosmetic products can harm an individuals skin or other parts of the body. Beauty brands have long pursued personalization, but have experienced plenty of starts and stops between lack of technological advancements, poor data collection processes, and nascent business models, among other factors. After 18 months of work, MACs concept store is another response to its loyal fanbase. As a result, youll create a stronger bond between your brand and your customers. Request a Free sample to learn more about this report. It launched a private label beauty brand called Belei in 2019 and recently invested in India-based D2C beauty site MyGlamm. Which is the leading product in the market? Meanwhile, global brands have already rolled out mens cosmetics lines. Box 289 Buffalo, New York14216 1-877-553-5536 Driving Directions MAC Cosmetics Summary ABOUT Overview Make-up Art Cosmetics is a manufacturer and supplier of cosmetics products. Currently, beauty juggernauts are looking to indie brands to experiment in newer markets and nascent trends. Its becoming critical for beauty brands to incorporate sustainability into their business model and operations, and water-saving techniques are crucial to the process. As the trend continues to gain traction, understanding the difference between niche and underserved audiences remains crucial, as there exist many demographics with untapped potential. Social commerce enables consumers to interact with brands or purchase a product or service via non-traditional channels, online forums, or on social media.. The formulations of cosmetic products consist of numerous chemical constituents, including synthetic chemicals, coloring agents, sulfates, and others. Moreover, extensive use of color cosmetic products for eyes and lips can also cause many skin diseases and consequential health hazards. As natural beauty ingredients are gaining popularity, the need for natural preservatives is also rising, resulting in research opportunities for organic and natural constituents. 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. Voice assistants like Amazons Alexa and Apples Siri present partnership opportunities for big tech and beauty. Countries around the world imposed lockdowns, and curfews, which has hugely impacted lifestyles, health & wellbeing, and affected manufacturing industries. 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. the global market value of natural cosmetics is projected to hit $50.5B by 2027. The report includes analysis of regional as well as global cosmetics market trends, key players, market segments, application areas, and cosmetics market growth strategies. 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. This is also considered a marketing strategy for many bog beauty firms for brand building and market acquisitions. The report was very accurate and as per my requirements. Inclination of Consumers Toward Natural Cosmetic Products to Assist Market Growth. 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. Moreover, the need for cosmetic products among beauty professionals is projected to foster the demand for the entire market. The global cosmetics market recovered markedly in 2021, rebounding to 2019 levels thanks to a very dynamic skincare category and growing digitalisation driven by the boom in e-commerce and social commerce. An Infographic Representation of Makeup Market, To get information on various segments, share your queries with us. 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. Customers can book a wide variety of services that would typically require going to a specific location. Perfect Diary dropped an eyeshadow collaboration with the Metropolitan Museum of Art in 2019 and signed Australian singer Troye Sivan as an ambassador. How generative AI can augment customer service agents, Big beauty incubates its own disruptors, ramps up acquisitions, Inclusive beauty becomes table stakes and new niches create huge opportunities, Synthetic beauty gains traction, riding sustainability and supply chain tailwinds, New sustainable packaging prototypes and business models take off, Waterless beauty as the next big eco trend, Beauty brands focus on value and varied pricing, Beauty further integrates with the wellness economy, Virtual try-on enables product discovery and engagement, Ingredient transparency trumps clean beauty, New approaches to omnichannel for beauty take hold, Quizzes, which address customer-specific preferences and customize products according to the results. Who are the major players operating in the market? Aug 24, 2022. Ingredient transparency and nontoxic options will be crucial for this category to see sustained growth. Overall, the online channel for beauty in the U.S. grew by 5.6% in 2020, whereas the offline channel contracted by 1.2%, according to Statista. MAC doesnt claim to have anticipated an atmosphere of heightened germ-awareness, despite their concept store lending itself to a more touch-free experience. Available: https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states, Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022, Immediate access to statistics, forecasts & reports, Find your information in our database containing over 20,000 reports. This gives consumers the freedom to go home and research products and reviews online before making a purchase decision. Its especially important for ecommerce and direct to consumer (DTC) brands that dont have physical retail locations. Macerich stock price target cut to $11 from $30 at J.P. Morgan. 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. In November 2020, Perfect Diarys parent company, Yatsen, debuted in a $617M IPO on the NYSE. On the basis of category, the market is divided into skin and sun care products, hair care products, deodorants & fragrances and makeup & color cosmetics. Leading beauty brands In 2020, the leading beauty manufacturer was French cosmetics company L'Oral, which recorded $33.93 billion in revenue. Beauty brands and conglomerates will increasingly use varied pricing strategies to appeal to a broader range of shoppers, with the goal of remaining essential to their routines. Haircare startup Prose, for instance, recently launched a subscription service for supplements which it says can prevent hair loss and promote healthier scalps. It is also a generational development: according to Google, almost 70% of millennials watched an online tutorial on YouTube during the year. Even informational content in the middle of the funnel can grow brand awareness with new prospective customers. Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. Then you can access your favorite statistics via the star in the header. Fortune Business Insights says that the global market size was USD 40.37 billion in 2021 and is anticipated to reach USD 61.34 billion by 2029. LOral has been a pioneer in social commerce through the years, including livestream shopping. Face powder is highly used as a base to apply bronzer, contour, or blush. 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. 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. In 2021, the global market value stood at USD 40.37 billion. Download our beauty industry report below for more beauty industry insights. The cosmetics industry has been segmented on the basis of category, gender, distribution channel, and region. For example, heres the top five ranked websites in the moisturizers sector of the beauty industry (informational searches vs product searches). Color cosmetics and fragrances saw particularly impressive growth on the back of the wider recovery, with a notable increase in consumers trading up. Demand for these services is not limited by geography. Cosmetics exports from Korea surged 15% in 2020, thanks to growing demand from the US and other Asian countries, per the Korea Customs Service and the Korea Cosmetic Association. Vegan skincare brand Biossance creates its own eco-friendly squalene, an ingredient typically taken from shark livers. CPG incumbents are also making moves. 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. For example, major retailers like Sephora, Macys, and Bluemercury have committed to the 15 Percent Pledge a promise to commit 15% of shelf space to Black-owned businesses. On the basis of gender, the women segment led, in terms of the cosmetics market size in 2019, and is expected to continue to grow with robust CAGR during the cosmetics market forecast period. . Some companies are also introducing waterless or water-reduced initiatives to salons. From waterless beauty products to virtual try-on, here are the trends and tech that will continue to transform the sector in 2021 and beyond. Which region held the highest market position in 2021? portalId: "763793", A. Asia-Pacific region holds the maximum market share of the cosmetics market. 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. Statista. maccosmetics.com's audience is 24.35% male and 75.65% female. Amazon, Apple, and Google all offer voice-enabled smart speakers and have designs on deeply integrating their virtual assistants into peoples home lives. Meanwhile, incumbent brands like Chanel, YSL, and others are revamping their product launch and marketing strategies to attract younger shoppers. The Definitive Guide, 10 Content Marketing Strategies for Beauty Brands + Examples, 9 Powerful Ecommerce Content Marketing Strategies for 2022, 10 Excellent Content Marketing Examples to Inspire Your Strategy, 10 Remarkable Benefits of Content Marketing. Consumers especially millennials and Gen Zers are leading the shift away from single-use plastic. With an annual growth rate of 4.75%, total revenue is expected to top $716 billion by 2025. A market in which L'Oral is the global beauty leader. Bottom line, beauty brands are missing out on a major opportunity when it comes to organic search traffic. Clean beauty brand Credo teamed up with virtual shopping app Hero in 2019 to provide online shoppers with the same customer service such as product knowledge and recommendations they would find in the store. In addition to relying on doctors endorsements and scientific studies to prove their products efficacy, beauty stakeholders from brands to dermatologists to makeup artists are relying on social media platforms to educate users. Nielsen notes that 92% of people trust recommendations made by friends or family more than any other advertising. Show publisher information In fact, Dotdash, the parent company of Byrdie, invested more than $50 million into content over a three-year period across their publishing portfolio. 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. "Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022." In the United States, beauty market share by revenue is segmented by the following beauty categories. These platforms typically include tools for booking and managing appointments, showcasing their work, and accepting payments. The ModiFace app uses AI to scrape and analyze images and descriptions of products from brands and social media posts to produce a more realistic augmented reality (AR) projection on users. 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. This weightless product has a powdery-matte finish that moisturizes lip. They can view receipts on their smartphones after leaving the store. Since the COVID-19 pandemic, use of the tool has exploded, with millions using it to virtually test different products. By continuing to visit this site you agree to our use of cookies . In Asia, mens skincare and makeup has been a burgeoning trend for years now, with the US catching up only fairly recently, which some attribute to quarantine boldness.. Although MAC inspired countless cosmetics brands, they still retain the largest ecommerce market share in the cosmetics industry, especially in lip products. Beauty brands from LOral to Smashbox to Benefit Cosmetics offer virtual try-on via tech by ModiFace (acquired by LOral in 2018), while social media platforms like Facebook and Youtube have integrated virtual cosmetics try-on into ads and influencer videos. In the physical Shiseido flagship store, customers wear connected wristbands that scan product signs and add items to digital carts. However, thats changing rapidly, with online sales projected to make up 48% of the total by 2023. In-store refills have yet to pick up especially after the Covid-19 pandemic though there is opportunity here. The surge of consumers focusing on self-care amid the pandemic has only accelerated the emergence of wellness as a holistic trend extending to traditional beauty areas like skincare. to incorporate the statistic into your presentation at any time. And with a further emphasis on health and wellness, beauty brands have had to evolve from a one-dimensional category to something more holistic and inclusive. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the cosmetics market players. Key players focus on launching new facial skin easing products developed according to the need of different skin types, supporting the segmental growth. Some companies are simply revamping their labels to highlight clinical results. Remarkable job and great efforts by your research team. In-house incubators offer a way for conglomerates to build relationships or even gain equity stakes in these companies paving the way for future acquisitions as it becomes clear which early-stage brands will mature and which will fizzle out. Notably, virtual try-on can also help brands personalize the beauty shopping experience, enhancing product discovery and making tailored recommendations about foundation shades, skincare products, and more. 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. A few brands are working to cater to older consumers, such as Gen Xers or baby boomers. Amazon has made major strides in expanding its beauty retail channel. The challenge remains in scaling up production. The easy-to-read efficacy testing panel highlights the difference products have made in studies looking at metrics like hydration, firmness, oiliness, and more. As a result, brands are rolling out beauty products that arent targeted at one specific gender. A. As people have spent more time working and socializing virtually, video filters could prove to be another expanding use case for virtual makeup. Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. However, ingredient transparency doesnt only mean making it clear what ingredients are included, then educating users on how effective they are it also means providing details on the ways those ingredients are sourced and moved. Some options include: Building vibrant online communities is an effective way to foster brand loyalty and increase engagement among customers. Total global beauty industry spending in 2020 was $483 billion, and the annual total is expected to top $716 billion by 2025. We know where we will be getting business intelligence from in the future., Thank you for sending the market report and data. 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. More and more consumers are using augmented reality when shopping. They simply lack the SEO strategy and long-form content needed to compete effectively in Google. 2023 Allied Market Research. Thank you for requesting a call back, our sales representative will get in touch with you shortly! Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. The major currents trends will shape the market in the positive side. sell on social commerce platforms and 48% . Currently, you are using a shared account. These are already being offered by companies like Neom Organics and Aeroscena. Few forms of brand marketing are more effective than Word of Mouth (WOM). MAC Cosmetics' public holiday sales The market is projected to grow from USD 41.85 billion in 2022 to USD 61.34 billion by 2029, exhibiting a CAGR of 5.61% during the forecast period.