Brands are building connected beauty systems to personalize skincare treatments, gather behavioral data on shoppers, all of which create aspirational demands on companies in the personal care industry.
Our 5 key factors driving growth in the personal care industry:
Upcoming growth in male-focused grooming products. Now, many of today’s brands are employing direct-to-consumer distribution and refreshed packaging to attract a new generation of male consumers. Men rate mental wellbeing as the most important health factor, as opposed to the absence of disease. At a time when stress is considered one of the biggest threats to human health, addressing this pain point is a big opportunity for product marketers to stand out.
Growth in emerging markets
Personal care sales in emerging markets continue to increase. The beauty market's largest segment is the segment Personal Care with a market volume of US$37,788m in 2020. Thus, while home self-care is trending, AR & AI technology, online makeup apps, online bookings, self-check-ins, online payments, and many such features will serve to eliminate unnecessary touch-interactions. The Covid-19 crisis has the potential to change the customer behaviour and prioritize consumer health and wellness in long-term, potentially increasing demand for skin health attributes, vitamins, mental wellbeing, conscious beauty and in-home therapies.
Natural and organic products & services
Consumers increasingly seek a healthy lifestyle. Ingredient transparency and non-toxic options will be crucial for this category to see sustained growth. More recently natural and/or organic products have become more accessible within mainstream retail outlets. Euromonitor International research indicates these trends are helping to drive growth in the region’s beauty and cosmetics industry.
Digital engagement trend. With the emergence of a digital ecosystem, consumers are changing how they interact with brands. Beauty corporates have been keen to showcase their tech savvy in the consumer devices category. Consumers search for beauty products online and make purchase decisions based on user-generated content and social media influencers. To engage with consumers, for example, retailers in China increasingly gave products at-home themes in WeChat. Technology departments must anticipate and prepare to offer more of these kinds of digital services, products, and channels. As the crisis also pushes 13 percent of European consumers to browse online e-tailers for the first time, brands should take the opportunity to become not just more digitally adept, but to become digital frontrunners.
Personal care companies are adjusting product lines to accommodate baby boomers and incoming millennials. Gen-Z focused brands have also been on the rise, such as UK-based Plenaire and Millie Bobby Brown’s Florence by Mills, which recently launched in Ulta. Milleniums are focused on preventing and delaying aging, thus driving product innovations for a wider spectrum of age-related functional concerns. Companies started to target younger segments as a growth area in the anti-aging category.