Despite the challenges posed by COVID-19, the beauty industry is expected to grow to over $101 billion in revenue by 2027. With increasing interest in consumer personalization and environmental sustainability, brands are leveraging advancements in technology and science to keep pace. Here are the top trends shaping the beauty industry from 2023 onwards.
Personalization has become a key expectation for consumers, and the beauty industry is no exception. According to McKinsey research, 71% of consumers expect a personalized shopping experience, and about 80% are more likely to make repeat purchases and recommend brands that offer personalized experiences to their acquaintances.
Beauty brands are striving to provide personalized recommendations and virtual try-ons by leveraging technologies such as artificial intelligence (AI) and augmented reality (AR). A prime example is hair care brand Prose, which offers a 25-question quiz to analyze over 80 factors and provide customized formulas for shampoo, conditioner, and other hair care products. Pure Culture Beauty offers an at-home skin test that measures skin type, condition, and the health of the skin barrier, allowing customers to purchase personalized skincare based on the test results.
Pure Culture Beauty measures various skin metrics and allows customers to purchase personalized skincare based on the test results.
Environmental sustainability has become a major focus across many industries, and the beauty industry is no exception. Driven by advances in life science, beauty brands are adopting new technologies to meet growing consumer demand for environmentally friendly products. However, traditional methods of producing beauty ingredients often have a significant environmental impact, contributing to land degradation, high water consumption, and pollution.
Large companies such as Unilever are responding to this shift. In partnership with Geno, a San Diego-based life sciences company, Unilever uses fermentation technology to produce surfactants for beauty products, reducing its reliance on ingredients such as fossil fuels and palm oil. By applying life science innovations, beauty brands can produce environmentally friendly ingredients in laboratory settings while minimizing the land degradation, water consumption, and pollution associated with conventional ingredient production.
There is a significant increase in awareness and interest among consumers regarding the ingredients in beauty products. According to a recent report by Nosto, 68% of consumers seek products described as “clean,” and 59% are influenced by products described as “natural and organic.”
To address these trends, brands are offering eco-friendly and “clean” products. Nearly one-third of beauty products are now labeled as “clean,” a figure projected to increase by 12% by 2027. Major retailer Walmart has also launched a “clean” beauty shop that includes 900 products free from specific ingredients.
Social media platforms like TikTok and Instagram have become influential channels for beauty brands to interact with consumers and drive sales. Nearly 60% of users have purchased beauty products based on social media recommendations, and 89% of TikTok users, in particular, have a tendency to purchase beauty products. As social media emerges as a popular platform for social commerce, beauty brands are utilizing influencer marketing and user-generated content (UGC) to attract customers.
TikTok and Instagram are the most popular platforms for beauty products through social commerce.
Truly Beauty has leveraged TikTok to grow its skincare business, garnering millions of followers and views, and has noted that user-generated content (UGC) played a major role in its growth.
Men's grooming is gaining significant popularity, driven by the influence of TikTok. Men are increasingly adopting skincare routines and exploring men's skincare and even makeup. The market for men's beauty products is projected to reach $110 billion by 2030, with 56% of men reporting that they are purchasing more skincare products than they were five years ago. Brands like Atwater and Manscaped are meeting this demand by offering simple yet effective product lines tailored to men's needs.
Founded by beauty expert Chris Salgardo, Atwater offers various skincare products, including creams, scrubs, body bars, and moisturizers for men.
Atwater recently collaborated with motorcycle brand Ducati to launch a limited-edition bar soap.
Originally known for hair trimmers, Manscaped has expanded its product line to include various skincare and haircare products made with vegan ingredients.
Manscaped offers a variety of skincare options made with vegan ingredients.
As interest in social issues continues to grow, consumers are demanding greater diversity and inclusion in the beauty industry. While 43% of beauty consumers appreciate seeing diverse representations of beauty in advertising, nearly one fifth of consumers, especially Gen Z, feel excluded by beauty marketing. Consumers are calling for greater representation of plus size models, non traditional beauty standards, and diverse gender identities.
Racial bias in the beauty industry remains a significant concern for consumers. Black consumers, in particular, often face challenges in finding suitable beauty products and continue to be underrepresented in the industry. McKinsey reports that while Black-owned brands account for only 2.5% of industry revenue, Black consumers represent more than 11% of beauty spending. Vitamin E and vitamin C are among the most sought-after ingredients among Black skincare consumers, with research showing 12 to 18% higher interest compared to the general U.S. population.
To bridge this gap, brands like Ami Cole and Fenty Beauty are offering diverse shade ranges specifically designed for melanin-rich skin and featuring a diverse array of consumers in their marketing campaigns.
Expanding into the global market is no easy task. Disrupt is a global team with a profound understanding of diverse cultures and a keen awareness of industry shifts. We help Korean beauty brands succeed globally by providing tailored digital marketing strategies and localized content. With our extensive experience in global beauty marketing, join forces with Disrupt to take on the competitive yet opportunity-rich global beauty market!
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