During the pandemic, lockdowns and emergency measures hampered the supply of raw materials to the market. And even among more product-focused searches, informational websites like Allure, Good Housekeeping, and Byrdie performed well. opens in a new window Click Here. In recent years, one of the biggest ways ingredient transparency has manifested is through the clean beauty movement, which focuses on natural and organic products. Face powder is highly used as a base to apply bronzer, contour, or blush. In March 2021, beauty conglomerate Coty partnered with LanzaTech to leverage the biotech companys sustainable ethanol in its fragrances. Though ingredient sourcing has historically been a trade secret for beauty companies, supply chain transparency could help improve the beauty production value chain and also help brands distinguish themselves as ingredient transparency becomes more widespread. Sephora Accelerates 2021 cohort will also only include founders of color. Growth of the dermocosmetics market compared with the global beauty market . Grooming, looking good, and feeling good trend is rising worldwide with women at the center of the cosmetics industry. 498 Seventh Avenue 12th floor Set in relation to the 13% usage share of the brand, this means that 85%. Instagram is not the only company using video to sell beauty products. Look for brands to continue to develop hyper-personalized offerings in order to differentiate themselves from competitors and cater to consumers more effectively. For more, read our article, How Byrdie Toppled Billion Dollar Beauty Brands (Without Ads). All rights reserved. Despite their momentum, companies tying beauty to overall well-being face challenges around perceptions of effectiveness and trust. North America (By Product, Application Area, Distribution Channel, and Country), Europe (By Product, Application Area, Distribution Channel, and Country), Asia Pacific (By Product, Application Area, Distribution Channel, and Country), South America (By Product, Application Area, Distribution Channel, and Country), Middle East and Africa (By Product, Application Area, Distribution Channel, and Country). At-home devices, which can measure user conditions, like the emergence of dark spots or surrounding environmental concerns, on a daily basis. Although MAC inspired countless cosmetics brands, they still retain the largest ecommerce market share in the cosmetics industry, especially in lip products. Others, including Glamsquad, send stylists directly to peoples homes or offices. Jun 30, 2021. In fact, it can range from natural product development, to cruelty-free products, to products created with sustainability in mind. With the rising awareness of harmful chemical ingredients on ones health and the environment among consumers, their buying behaviors have shifted to organic products. On the basis of distribution channel, the hypermarkets/supermarkets segment held a major share in the market in 2019, and is projected to remain dominant during the forecast period. However, that doesnt mean that the in-store experience is a thing of the past. A key social commerce tool in the beauty world is livestreaming, which has grown significantly with the Covid-19 crisis and the increase in online buying. Furthermore, China represents one of the fastest-growing markets for mens beauty and grooming products. What is the crucial factor driving the global market? In 2020, LOral rolled out Signature Faces, a line of virtual makeup products. The line provides makeup filters supported on a range of platforms, including Zoom, Instagram, Snapchat, and more. Which factors are responsible for driving the product demand? Thats why the global market value of natural cosmetics is projected to hit $54B by 2027. ", Statista, Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022 Statista, https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states (last visited May 01, 2023), Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022 [Graph], Statista, July 12, 2022. Similarly, they need to keep pace with effective marketing strategies such as more advanced beauty influencer marketing and branded communities. As a Premium user you get access to background information and details about the release of this statistic. In recent years, homegrown beauty brands such as Perfect Diary, Florasis, and Judydoll have emerged to address native demand in the second-largest market for makeup. Beauty and CPG incumbents should look to use investments, M&A, or partnerships to bring these tech innovations in-house to help achieve broader sustainability goals. With many salons closed for months in 2020, there was a significant rise in demand for DIY beauty products, such as peels, masks, and waxing kits. After all, Mr. Pinatel avowed passionately that MAC has always lead in inclusivity.. 2020 Fortune Business Insights . 2020 Annual Report. Skincare brands from Aesop to Ursa Major to Non Gender Specific have ditched gendered marketing, opting to package and sell unisex products that focus on specific skin concerns or conditions instead. On the basis of distribution channel, it is categorized into hypermarkets/supermarkets, specialty stores, pharmacies, online sales channels, and others. As a Premium user you get access to the detailed source references and background information about this statistic. Skin care products play a major role in daily healthcare regimen of individuals. 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. C PRO Student Program. With the flourishing fashion and entertainment industry, the demand for latest cosmetics is increasing significantly. At what CAGR is the market projected to grow in the forecast period (2022-2029)? Amazon, Apple, and Google all offer voice-enabled smart speakers and have designs on deeply integrating their virtual assistants into peoples home lives. The dermocosmetics market 2020 The only cosmetics market that recorded growth in 2020. 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. Moreover, the cosmetics market across the globe has witnessed continues and sustained growth over years, owing to rise in beauty-conscious female population. Even informational content in the middle of the funnel can grow brand awareness with new prospective customers. Color cosmetics and fragrances saw particularly impressive growth on the back of the wider recovery, with a notable increase in consumers trading up. Corporates like Unilever, P&G, and Target have all tapped into this trend through acquisitions, accelerators, internal brand incubation, and more. Beauty Chef, a startup that has raised $6.8M, is already marketing its products by linking beauty to gut health. Previous perks have included MAC Cosmetics coupons for 25% off storewide and a free gift with orders of $65+. For brands, targeting multiple price points and diversifying product portfolios could help them weather periods of economic uncertainty. A look at how skincare valuation multiples are faring. Another important factor in a successful omnichannel experience is the ability for store associates to connect with customers online. Amazon has made major strides in expanding its beauty retail channel. Here are some of the most important online beauty industry marketing trends to watch. The cosmetics industry has an annual growth rate of 4.75%. Major opportunity exists in meeting the needs of cohorts beyond the young adult (ages 18 to 35) segment. Download our beauty industry report below for more beauty industry insights. 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. 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 What are the product segment? It certainly looks that way. However, they still lag behind many publishers, blogs, and even health-related websites, depending on the type of keyword. Japans Shiseido exemplifies the omnichannel approach. When done effectively, it enables brands to own both the top sponsored and organic spots in search results, which translates into a significant amount of site traffic. Cosmetics & Personal Care Products Direct Selling Market, https://www.fortunebusinessinsights.com/makeup-market-102587, Rest of Middle East & Africa (By Product), Granular Research on Specified Regions or Segments, Companies Profiled based on User Requirement, Broader Insights Pertaining to a Specific Segment or Region, Breaking Down Competitive Landscape as per Your Requirement, Other Specific Requirement on Customization. Lab-grown ingredients can serve as a differentiator for brands in the broadening landscape of natural, sustainable clean beauty. Accessed May 01, 2023. https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states, Statista. Uniquely, The Innovation Lab is the integration of the best of both digital and retail worlds coming together for an AI beauty encounter. A. portalId: "763793", Are you interested in testing our business solutions? Traditional brands and beauty retailers are losing ground on product-related searches as well, when consumers are actively looking to purchase. During recessions and economic downturns like the Covid-19 crisis, beauty tends to be a resilient category due to whats known as the lipstick effect consumers tendency to see beauty as an affordable, small luxury during uncertain economic times. Virtual try-ons are a key decision-making tool to assist with buying beauty products, especially makeup. 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. Social commerce already accounts for almost 12% of online sales in China . 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. "Assisting You in Establishing Data Driven Brands", Region : Global | Format: PDF | Report ID: FBI102587. Demand for these services is not limited by geography. Following 2020s spotlight on racial justice and equity, a newfound focus on funding diverse brands has emerged as well. Global digital advertising spending is increasing year after year, accounting for a growing proportion of total media spending, estimated to average almost 54% worldwide in 2020. Individuals can share tips and tricks with one another, help solve problems, and make recommendations based on their personal experience. An effective SEO strategy allows companies to connect with and serve more people at each stage of the purchase funnel. [Online]. 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. Only three of the top ten are beauty retailers. Apart from this, the online segment is anticipated to hold the fastest growing CAGR during the forecast period owing to the rapid boom of e-portals during 2020. For example, D2C cosmetics brand. 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. For example, California-based ManiMe uses 3D scanning and printing technology to create customized press-on nails that are shipped to the customer. LOral is looking to bring it to 10,000 salons in coming years and says it can save up to 80% of water used in rinsings. Moreover, extensive use of color cosmetic products for eyes and lips can also cause many skin diseases and consequential health hazards. In makeup, examples include Fenty and Milk Makeup, as well as indie startups like Fluide and Jecca Blac. sell on social commerce platforms and 48% . The company offers collagen a protein that helps form skin in products like powders and snacks. Rewind: Read our breakdown of 2020-2021 beauty sales. Mac Cosmetics is partnering up with the Whitney Houston Estate to launch a makeup range. The global makeup market size was valued at USD 40.37 billion in 2021. Looking forward to work together in the future, It has been a delightful experience working with you guys. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. Allure and Byrdie rank first and second, and their websites attract between 60 and 80 million organic search visitors overall each year. Meanwhile, unicorn Zenoti, which raised $160M in Series D funding earlier this year, provides services management software for salons in over 50 countries. Presently, rise in awareness about beauty and consciousness are the prominent factors that drive demand for skin care products. Also look for on-demand wellness services to become more frequent offerings in the office as employee well-being becomes a top priority for bringing people back to the office following Covid-19. The different market segmentations allow it to cater to the vast MAC Cosmetics target market. And the top five websites hold 40% of the total organic search market share. What will be the market value in the future? 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. This factor also resulted in the development of low-cost counterfeit products with lower-quality ingredients that are not safe to use. 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. 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.

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