In 2021, the global market value stood at USD 40.37 billion. Presently, along with women, there is a rise in use of cosmetics among men in their daily routine, which complements growth of the global cosmetics market demand. In January 2021, Hims & Hers which launched as a holistic male wellness brand through its suite of haircare, skincare, and supplement products but has since expanded to womens wellness went public in a $1.6B SPAC deal. On the basis of distribution channel, it is categorized into hypermarkets/supermarkets, specialty stores, pharmacies, online sales channels, and others. Inclusivity is also playing an increasingly important role in the beauty industry. Beauty markets across the globe are developing brands for internal consumption while also exporting them globally. It has over 7000 product offerings and 100 eye shadow shades. Plus, keep in mind that roughly 70% of the clicks in Google go to the organic listings. 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. Much of the beauty livestreaming activity in Asia has been driven by high-profile influencers known as KOLs (key opinion leaders) like Lipstick King Jiaqi Li, who reaches millions of viewers every month. Based on product, the market is segmented into powder, gel, lotion, and others. sell on social commerce platforms and 48% . The MAC Cosmetics Black Friday sale is an awesome way to get quality makeup at a discounted price point. CXOs further added that rise in consciousness regarding physical appearance among individuals as well as working class professionals propels growth of the cosmetics market. Meanwhile, incumbent brands like Chanel, YSL, and others are revamping their product launch and marketing strategies to attract younger shoppers. Growth of the dermocosmetics market compared with the global beauty market., proportion of e-commerce in the beauty market compared with 14% in 2019. Augmented reality apps that allow customers to virtually try on new products, Creating a referral program that rewards brand ambassadors, Highlighting customer reviews on their website, Rallying around a social cause, much like TOMS did by supplying shoes to those in need, Creating viral content that people want to share. It launched a private label beauty brand called Belei in 2019 and recently invested in India-based D2C beauty site MyGlamm. Few forms of brand marketing are more effective than Word of Mouth (WOM). Across the skincare queries that Terakeet examined, Amazon ranked eighth in organic market share. Today, MAC has opened the doors of its newest design concept. 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. Similarly, India-based CureSkin provides dermatological assessments alongside broader health advice on diet and lifestyle. Since the COVID-19 pandemic, use of the tool has exploded, with millions using it to virtually test different products. Among its alumni are gender-neutral makeup line, Inter Parfums subsidiary bought a 25% stake in France-based fragrance company. Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. With consumer preferences changing to organic and therapeutic formulations due to rising awareness of organic products, manufacturers have accelerated research & development efforts to find new organic and herbal ingredients that can attract consumers. Use of cosmetics by men is expected to eventually increase and in turn supplement growth of the global cosmetics market. Due to lockdowns in some countries, import and export activities became difficult and the demand also dropped, affecting market expansion. After all, Mr. Pinatel avowed passionately that MAC has always lead in inclusivity.. Google works with brands to use its search data to better understand beauty shoppers preferences. MAC Shanghai custom 3D prints eyeshadow palettes for customers, for example, while Shespoke has developed software that allows it to manufacture custom-mixed lipsticks at scale. Legacy brands must adapt to these changes or they risk losing market share to startups utilizing different business models. Individuals can share tips and tricks with one another, help solve problems, and make recommendations based on their personal experience. It has an annual turnover of over $1 billion and has over 500 independent stores around the world. 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, in April 2021, private equity giant Carlyle Group took a majority stake in cosmetics company Beautycounter in a deal valued at $1B. Sephora is a good example, with its thriving Beauty Insider Community. The top six market share holders for informational searches are publications. Moreover, prolonged exposure to such products results in the continuous deposition of toxic ingredients in body cells that can eventually cause adverse effects. Alibaba reported eye-cosmetic sales increased 150 percent, month over month, during the week of February 18, 2020.2 By contrast, skin-care, hair-care, and bath-and-body products appear to be benefiting from self-care and pampering trends. A look at how skincare valuation multiples are faring. 7 Proven Business Growth Strategies that Work (+ Examples), How Byrdie Toppled Billion Dollar Beauty Brands (Without Ads), Organic Growth 5 Strategies to Drive Sustainable Growth, Download Terakeets Beauty Industry Report, Deodorants, Personal Care Products, Feminine, Interactive tools/apps (like the Fenty shade finder). 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. Rising Awareness Regarding Adverse Effects of Chemical Formulations to Hamper Product Sales. 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. Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. Each in-store experience is based on community and a feeling of hyper-local branding. Furthermore, indie brands often succeed in the areas beauty corporates dont, namely niche categories, targeted distribution, and social media prowess. The cosmetics industry has been segmented on the basis of category, gender, distribution channel, and region. For example: Below, we look at where big tech and beauty are colliding. Ultimately, the ingredient transparency trend will likely go more mass market and global across all consumer products. While beauty supplements arent a new concept, an increasing number of startups are targeting the market with products that promise beauty benefits such as weight loss, clearer skin, and stronger hair. Sephora Accelerates 2021 cohort will also only include founders of color. The dermocosmetics market 2020 The only cosmetics market that recorded growth in 2020. LOral-owned ModiFace also allows customers to try on makeup virtually. Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. Beauty hasnt historically been a key focus area for big tech, but these giants will inevitably continue to extend their influence in the sector. Jun 30, 2020. Accessed May 01, 2023. https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states, Statista. The industry has recently observed an emerging trend of men using cosmetic products in their daily lives. In particular, perimenopausal concerns have seen increasing attention in skincare, for example: Beauty brands are also looking to babies and children for untapped opportunities, with examples like: Luxury skincare brands such as Pai Skincare, Dr. Barbara Sturm, and others have expanded into baby and childrens skincare products. But consumers know that even minimal makeup is not a minimalist experience. 2020 Annual Report. A number of factors have propelled their growth: shifting perspectives in favor of domestic brands, the ability to leverage cultural connections, and rapid manufacturing, among others. Nail care is also increasingly coming out of the salon and into the home. 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. As people have spent more time working and socializing virtually, video filters could prove to be another expanding use case for virtual makeup. The base year calculated in the cosmetics market report is 2019. At what CAGR is the market projected to grow in the forecast period (2022-2029)? Quality online customer service can help shoppers feel more comfortable buying new products online. They simply lack the SEO strategy and long-form content needed to compete effectively in Google. Beauty-focused SPACs have emerged of late, including Powered Brands, which is looking to acquire between $800M to $1.5B of assets to compete with legacy beauty brands, and Waldencast Acquisition Corp., which is expected to ink deals in the $1.5B to $3B range. 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. Ascending at a CAGR of 5.61%, the global market will exhibit steady growth over the forecast period (2022-2029). In makeup, examples include Fenty and Milk Makeup, as well as indie startups like Fluide and Jecca Blac. Looking forward to work together in the future, It has been a delightful experience working with you guys. This shift is accelerating as government regulation in the EU and select US states pushes CPG companies toward adopting more sustainable alternatives. Though theres been a lot of buzz around more effectively targeting people of color in the beauty sector, theres still much to be done. Perfect Diary dropped an eyeshadow collaboration with the Metropolitan Museum of Art in 2019 and signed Australian singer Troye Sivan as an ambassador. For instance, a 2020 study by the National Library of Medicine stated that the use of cosmetics harms the human skin and can lead to pigmentation and skin problems as some of these substances could also have harmful, irritating, and allergic effects on human health. 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. Age Distribution 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ Gender Distribution Female 75.65% Read on for a high-level look at the beauty industry, trends that matter, and cosmetics marketing strategies that will create the most success. Allure and Byrdie rank first and second, and their websites attract between 60 and 80 million organic search visitors overall each year. At-home devices, which can measure user conditions, like the emergence of dark spots or surrounding environmental concerns, on a daily basis. Last year, LOral launched Perso, its AI-powered device to formulate and dispense personalized skincare, lipstick, and foundation. At the rate the planets resources are being depleted, the shift to lab-grown ingredients may arise out of necessity. DNA testing kits, which allow companies to provide product recommendations or create custom products based on users genes. (July 12, 2022). Consumers especially millennials and Gen Zers are leading the shift away from single-use plastic. Which region held the highest market position in 2021? It also helps control excess oil around the nose and forehead area, preventing the need for frequent reapplication and further increasing its demand. Because a founder is of color does not mean that their business has to be focused only on people of color, Keenan Beasley, the founder and CEO of beauty incubator Supply Factory Brands, told Glossy. According to DECA, 80% of female teens said they were willing to spend more for clean beauty. Major countries in each region are mapped according to their revenue contribution to the global market industry. In 2020, Deciem nearly doubled sales to $460M, primarily through its skincare brand The Ordinary, which has developed a strong cult following. Customers are increasingly demanding greater insight into what their products are made of, and ingredient transparency has become a top priority not only for beauty and personal care brands but also for CPG and retail companies more broadly. Then you can access your favorite statistics via the star in the header. Please do not hesitate to contact me. Who are the leading players in the global market? [Online]. Companies going after the space will have to calibrate their messaging carefully and prioritize transparency to successfully engage customers while managing expectations. 2022 Annual Report. Rewind: Read our breakdown of 2020-2021 beauty sales. Author(s) : Nitesh C, Himanshu V , Roshan D, Global Opportunity Analysis and Industry Forecast, 20212027, AVON PRODUCTS, INC, KAO CORPORATION, LORAL S.A., ORIFLAME COSMETICS S.A., REVLON, INC., SHISEIDO COMPANY, LIMITED, SKIN FOOD CO., LTD., THE ESTEE LAUDER COMPANIES INC, THE PROCTER& GAMBLE COMPANY, UNILEVER PLC. These are a relatively new marketing strategy that work especially well for the cosmetics industry where personalization is important. The company raised a $4M seed round in May 2021. Looking ahead, expect functional fragrances to be incorporated into more beauty products and categories, including experiential beauty offerings such as spas and wellness hotels. At the MAC Innovation Lab in Queens Center, customers will have the opportunity to customize their own palettes, personalize product packaging, and virtually try on makeup shades or even entire looks created by MAC makeup artists. Some options include: Building vibrant online communities is an effective way to foster brand loyalty and increase engagement among customers. The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. The approach is already popular in Asia, but it has started to make inroads in markets like the US. Leading beauty brands In 2020, the leading beauty manufacturer was French cosmetics company L'Oral, which recorded $33.93 billion in revenue. With the rise of social media and advanced data analysis, brands are able to deliver increasingly relevant and targeted messages to consumers. 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 It can be used to nurture relationships, promote special offers, recover abandoned carts, highlight newly published content, and more. 2020 was a redefining year for every industry including beauty. Labor shortages in factories and logistics operations due to the pandemic continue to have a serious impact on supply chains around the world. The range includes liquid foundation, stick foundation, concealer, and compact, available in five shades. We value them as a research company worthy of building long-term relationships., Well done Fortune Business Insights! (For more, read our brief on How Material Innovation Will Improve Sustainability In Beauty & Personal Care.). From virtual try-on features to AI-enabled skincare analysis to waterless beauty products, the pandemic has accelerated once fringe technologies. Biotechnologies are increasingly impacting the production of beauty ingredients. Hair color has seen a notable boost in the past year as lockdowns have prompted new forms of self-expression, per Sally Beauty Chief Merchandising Officer Pam Kohn. Look for brands to continue to develop hyper-personalized offerings in order to differentiate themselves from competitors and cater to consumers more effectively. We cater to it all., MAC COSMETICS INNOVATION LAB QUEENS CENTER. 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. It looks quite comprehensive and the data is exactly what I was looking for. 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. Its becoming critical for beauty brands to incorporate sustainability into their business model and operations, and water-saving techniques are crucial to the process. 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. Cosmetics, and The Ordinary have moved up in the rankings, becoming some of the top skincare brands for teens over the past year, largely thanks to influencers on the platform. In the highly competitive B2C beauty industry, an effective content strategy can help brands differentiate from the competition. As the beauty industry becomes more tech-enabled, opportunities for big tech companies to monetize their data, platforms, and devices will only increase but, even as partnerships abound, they may eventually find themselves competing more directly with increasingly tech-savvy beauty incumbents. opens in a new window Click Here. to provide the most effective ingredients for users. 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. 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. Nine states, including California, New York, and Maine, have enacted statewide plastic bag reduction laws or bans. Beyond Fenty, a number of inclusion-focused brands like Mented Cosmetics, Urban Skin Rx, and Live Tinted have forged partnerships with larger retailers like Ulta Beauty, Target, and CVS to roll out their products nationally. Analyzing a16zs investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. On the basis of category, the market is divided into skin and sun care products, hair care products, deodorants & fragrances and makeup & color cosmetics. One of The Ordinarys peeling solutions racked up over 50,000 sales in the span of two weeks following a viral video featuring the serum. 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. Social commerce already accounts for almost 12% of online sales in China . 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. During the survey, the questions were phrased as follows: Dior J'adore evaluation in the United States 2015, Gucci by Gucci evaluation in the United States 2015, Giorgio Armani Si evaluation in the United States 2015, To download this forecast you need one of our Business Solutions. Livestreamer Jiaqi Li promoting beauty products on Alibabas platform. In addition to scoring an amazing discount, MAC Cosmetics fans will still . Chile-based Algramo, which expanded to New York in August 2020, also offers opportunities for refilling household products, though beauty and personal care is likely a future opportunity thanks to its partnerships with Unilever and Nestl. All Rights Reserved. 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. The highly visual nature of the beauty industry makes video marketing a critical strategy for brands. Certain areas within beauty, such as skincare, became an area of focus instead as people looked for ways to de-stress. 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. Often, it can be cheaper to incubate or accelerate new companies (that could serve as potential partners or acquisitions down the line) instead of developing in-house brands. "Mac Cosmetics Brand Awareness, Usage, Popularity, Loyalty, and Buzz among Beauty and Health Online Shop Users in The United States in 2022. South Korea has been a trendsetter in this category, with men in South Korea accounting for a fifth of global spend on mens skincare in 2018 a trend often attributed to the rise in popularity of K-pop idols. Most interestingly, 70% of the stores consumers personalized each product they bought with the stores custom printing; a prediction I have for high-levels of gift-giving this holiday season and beyond. Consumer behavior has shifted. The virtual Shiseido store uses virtual reality (VR) technology to let customers browse the first, second, and basement levels of the flagship location. Terakeet analyzed 915 of the top keywords in the skincare market, representing 26.52 million annual U.S. searches. Alll, for example, analyzes users genes through a DNA test to provide targeted skincare products. But there are no half-measures about Mr. Pinatels plans for MAC. The truth is, online publishers and informational sites significantly outperform established beauty brands like LOral, Procter & Gamble, and Este Lauder Companies. The partnership was named Best In-Store Technology Innovation in the beauty industry by Glossy. Which is the leading product in the market? Source: Alizila. And while some trends will fizzle out, others will only expand their reach. For example, California-based ManiMe uses 3D scanning and printing technology to create customized press-on nails that are shipped to the customer. Perhaps more than any other industry, the beauty industry is associated with influencer marketing. Other alternatives include paper and fiber-based packaging being developed by early-stage companies like Paboco, Paper Water Bottle, and Ecologic. Privacy Policy. In comparison, NARS generated an average of 33 mentions per day, an average of 1.4 mentions per hour, which acquired 680,560 impressions and reached 250,600 users. Only three of the top ten are beauty retailers. As cosmetics have become an integral part of individuals lives, consumers, especially women, prefer to use cosmetics products, which are handy and easy to use while travelling or attending social meetings. Furthermore, 17 of the top 22 performers are publishers, capturing 62.3% organic market share. Supply Chain Disruptions Due to the Pandemic Affected the Market Growth. These stores offer a variety of products to consumers and every individual has the liberty to validate the genuineness of the product. Many of todays brands, such as Stryx, Shakeup Cosmetics, and War Paint, are employing D2C distribution and refreshed packaging to attract a new generation of male consumers. Asia Pacific Makeup Market Size, 2021 (USD Billion), To get more information on the regional analysis of this market, Request a Free sample. MAC Cosmetics Headquarters 2316 Delaware Ave P.O. LOral, for instance, has credited its diverse pricing strategy for enabling it to absorb even severe market conditions like in 2020.. Ultimately, the beauty brands and retailers that will come out on top will be the ones that create a unified view of the consumers online and offline behavior. 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. 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.. As a result, brands are rolling out beauty products that arent targeted at one specific gender. The Body Shop launched its refill stations globally in March 2021, allowing consumers to refill shower gels, hand soaps, shampoos, and conditioners in stores. 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. Email marketing is a highly effective ecommerce strategy for beauty marketing teams. hbspt.forms.create({ A. 2020 was a redefining year for every industry including beauty. Synthetic beauty ingredients are also getting attention. With the flourishing fashion and entertainment industry, the demand for latest cosmetics is increasing significantly. They can view receipts on their smartphones after leaving the store. Inclination of Consumers Toward Natural Cosmetic Products to Assist Market Growth. This is a very good piece of work and will be very helpful to us going forward. Innovative strategies such as new product launches with natural ingredients and appealing packaging have been adopted by manufacturing companies to increase sales of their cosmetics products. However, in 2020, MAC Cosmetics . 18, 2020 at 6:46 a.m. The region is anticipated to experience a significant growth in the coming years, owing to the rise in the young population along with their rising consumption of branded beauty products. Some examples of amazing digital customer experiences include: For example, Ultas Glam Lab lets customers see what theyll look like using different types of color cosmetics like mascara and eyeshadows, as well as with different hair color or eyelashes. Use Ask Statista Research Service. Virtual try-on is also available on the Kiko Milano website. The global COVID-19 pandemic has been unprecedented and staggering, with makeup experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Here are just a handful of content marketing examples to consider for your strategy. 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. Meanwhile, Peace Out Skincare saw sales for its pore strips quadruple in just 24 hours after it was endorsed by TikTok skinfluencer Hyram Yarbro, while another teenagers viral video drove nearly $850K in sales for The Ordinary. Face powder is highly used as a base to apply bronzer, contour, or blush. Amyris brand Pipette, which was launched in 2019, expanded into Target in February 2021. 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. Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. An efficacy facts panel from a product label. Virtual try-ons are not new. 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. 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. Previous perks have included MAC Cosmetics coupons for 25% off storewide and a free gift with orders of $65+. portalId: "763793", Sephora, for instance, partnered with Google to offer its own Google Assistant app that allows users to order products, access skincare advice, and view Sephoras YouTube videos. The powder segment is estimated to grow at a significant rate in the coming years. To compete online, beauty brands must develop new, innovative ways to capitalize on social channels. Traditional brands and beauty retailers are losing ground on product-related searches as well, when consumers are actively looking to purchase. Coming out of the pandemic, as economic recovery looks different for consumers with different wallets, there is opportunity at multiple price points. Download Terakeets Beauty Industry Report to see which brands are winning (and losing) in Google organic search market share. Since Unilevers $1B acquisition of Dollar Shave Club in 2016, M&A of mens personal care brands has spiked, with deals including: D2C brands targeting mens personal care like Bevel, Lumin, Huron, Scotch Porter, Stryx, Hawthorne, and more have all reported growth in 2020, according to WWD. Chanel first launched Boy de Chanel in South Korea, while Shiseido said its male makeup line saw double-digit growth amid the pandemic, bolstered by Japanese businessmen in their 40s.
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