Blogs

The changing face of the beauty industry, from gender-bending products to technological makeover

  • Overview of the global beauty industry
  • A look into newer products and technology that have hit the beauty market
  • Trends to look for, going ahead in the industry

 

The global cosmetic product market, which is currently valued at USD 532.43 billion (as of 2017), is growing rapidly and is expected to reach a market value of USD 805.61 billion by 2023, registering a CAGR of 7.14% between 2017-2023. This will be propelled by the changing appetite of consumers’ for innovative and new skincare products. Moreover, it is a fact that the consumers are becoming more aware and conscious of their personal requirements, which has pushed the growth of the industry.

In the contemporary world, beauty and technology are increasingly blending together. On the product side, celebrity beauty product lines have changed the conversation of inclusive beauty across the industry for better. Furthermore, clean and natural beauty products intertwined with health and wellness for both female and males have become a requirement for choosing a beauty product. Direct-to-consumer beauty brands lead the pact with new trending products. Few of the big direct-to-consumer brands that have made a mark in the present market include Glossier, Everlane and Bonobos. That is not to say that these start-ups have killed the traditional brick-and-mortar stores, but, on the contrary, these are revitalizing them by putting their own spin to these physical stores.

K-beauty (Korean-beauty); known for its highly advanced ingredients and formulation, hit the global scene big time, around 2011 when Sephora began having the K-beauty products on its shelves. Ever since other brick-and-mortar retailers like Walmart and Target have started selling K-beauty products, including e-commerce platforms. While K-beauty is still highly in demanded, Japan of late has garnered a lot of attention for their beauty products. The nation has very strict regulations and the country’s Ministry of Health, Labour and welfare only recently authorised its first product to be labelled as ‘anti-wrinkle’. Further, some Japanese beauty brands that are gaining prominence include luxury beauty brand Tatcha, SK-II and DHC.

In addition, there has been a big time rise in male as well as gender-neutral beauty products. These gender-neutral products are the new male-focused beauty products, with companies like ASOS, Calvin Klein, Yves Saint Laurent, Clinique and other noted brands offering make-up for men, while start-ups like Context and incumbent brands including the likes of MAC, Tom Ford and Marc Jacobs have also launched gender neutral make-up lines. In order to catch up with this trend, brands such as Maybelline and Covergirl have also announced male brand ambassadors. Male grooming companies and hair loss are the leading categories.

While on the technology side, the beauty space is also no exception when it comes to technology that is revolutionising the industry. In the recent past, major beauty brands invested in technology like augmented reality for a better experience in customising beauty products and experiences. The beauty brands are increasing their partnerships with tech giants such as Google, Amazon, Facebook and Apple for driving sales through these platforms. These big tech giants are curating beauty shopping experiences through data on consumer preferences. Few of the notable new technologies that have entered and are re-defining the beauty and cosmetic world are detailed in the below table.

Social media platform has also played a very pivotal role in the growing prominence of the newly found independent direct-to-consumer brands and the well-established beauty brands for re-defining their presence. Of all the media and tech channels, YouTube’s beauty universe has gained enormous traction over the years with over 222 billion views and has become one of the top platforms for beauty related videos. In 2018, there was on an average of more than one million views on beauty related videos on YouTube per day.

While 2017 saw the retail space struggle, but the beauty industry thrived and saw major investments in augmented reality with an overall increase in the industry for a push towards technology backed beauty industry. Direct-to-consumer brands saw the largest number of deals (2017) across the beauty industry. The newer start-ups are pushing forward new beauty trends, but when it comes to sale numbers, the market is still largely owned by a handful of big companies. Beauty is one of the few spaces where the multi-brand retailers are still successful.

Alongside all this, some of the independent brands are also making waves in the current beauty market as they have captured the industry in recent times and are continuing to grow with their ever-increasing innovative product-line and enhancing customer acceptance.

Going forward, we can expect to see more and newer kind of inclusive integration between beauty and technology for delivery of more customised and personalised shopping experience when choosing a beauty product as the beauty industry becomes more tech-enabled. The use of digital technology will become more sophisticated as artificial intelligence and augmented reality enters the mainstream.  Premiumization by brands on their products will also drive standards across all segments of the beauty industry. Beyond these major industry trends in the beauty industry, consumers are seeking greater health benefits and sustainability in their cosmetics similar to what consumers expect from their food. Thereby, influencing the buying behaviour of consumers based on the same aspect. Additionally, the beauty industry is witnessing more regulatory scrutiny amid increased ‘greenwashing’ across space (where brands claim their products to be organic and natural when it may not be the case) and a larger number of consumers are seeking transparency when it comes to beauty products.

Your Rating

Failure of Amazon in China, an analysis

E-commerce market in China Online consumer product retailers in China Performance of Amazon in China   Amazon is a global e-commerce player selling a wide...

An analysis of Malaysian rubber glove industry

How big is the international rubber gloves market? Reasons behind the healthy and steady growth Malaysia’s role in the industry Why are companies struggling for stable...

Tire manufacturing industry, analysing the cost and margin trends

The global market for tire manufacturing stands at $180 billion. Michelin anticipates the long-term demand to rise at the rate of 5 to 10% a year in developing markets and 1 to 2% a year in mature...

Can lithium-ion anode demand for needle coke reduce availability for electrode players?

What is needle coke? Uses of needle coke Lithium-ion battery manufacturers demand needle coke   Needle coke? Needle coke is a specialised form of petroleum coke...

Blockchain, an emerging concept, a disruptive technology (Part 1)

What is blockchain? How is blockchain revolutionary? Cryptocurrency, the new money ICOs, the new way of raising money Summary Blockchain is a software architecture...

Rapidly growing Indian online food delivery industry and its unrealised profits

Evolution of online food delivery industry in India Geographical penetration and scope for expansion Key players and their zeal to balance revenue and costs   Online...

Is the radio broadcasting industry in the U.S. dying? An analysis

Radio, the most powerful medium of reach in the U.S. Why the industry is moving at a slow pace? Radio’s health is still sound, will it continue in the long-term?   ...

Rice industry outlook 2018

Major rice producers and consumers Global rice trade Factors dominating the trade   Rice is the 3 rd largest produced agricultural commodity in the world, after...

Sri Lankan economic and political crisis

Sri Lanka’s latest political crisis, who governs the nation? Poor economic indicators adding to the nation’s woes   Sri Lanka is currently embroiled in a political crisis,...

Baidu’s Apollo, the underdog of autonomous driving platform

Overview of the autonomous vehicle sector in the global automobile industry Search giant Baidu’s entry into the autonomous driving space Baidu’s approach in becoming a front-runner...

Rise of Ant Financial, will the success story continue?

What is Ant Financial? Journey to become king of unicorn Will regulatory curbs hinder its success journey?    Ant Financial, an affiliate and integral part...

Carbon black industry, strong potential for supernormal profitability?

What is carbon black? Its uses Impact of the environmental curbs in China   What is carbon black? Carbon black is a fine carbon powder and it is a disorderly...

What’s in store for India’s first commercial REIT as it hit the market with Blackstone teaming up with Embassy Group

Overview of the partnership and assets of Embassy Office Parks Comparison of the Indian commercial office market space with other developed markets Road ahead for India’s...

Indian wood panel industry, growth drivers and present trends

Current market scenario in the Indian plywood industry Growth in the housing sector and rapid urbanisation to provide the boost GST rationalization to reduce price difference...

OYO Rooms, an Indian start-up to enter Japan

Growth story of OYO Rooms in India Business model of OYO Rooms Analysis of strategy to enter Japan   OYO Rooms, the Indian start-up has decided to venture in Japan...

Unnoticed growth of the media and entertainment industry in India

Overall industry brief Growth of the M&E industry and its segments Major supporting elements of this growth   Media and Entertainment (M&E) is a very wide industry...

Battle for the textile and apparel industry in Southeast Asia

The reasons for China’s decreasing presence in the industry Initiatives by the governments in Southeast Asia to boost the textile trade Vietnam and Bangladesh’s quest to conquer...

SAP’s acquisition of Qualtrics, a costly affair or a strategic move?

History and evolution of SAP and ERP. Will experience measurement add value to SAP ERP?   On November 12, 2018 ERP software giant SAP announced an $8 billion acquisition...

Evaluating the performance of Apple products and its decision to enter the video streaming business

Tim Cook’s announcement to launch new services Performance of Apple at a glance The current and the future outlook of global video streaming business   On March...

Housing finance market in India. Is affordable housing driving the growth?

Overview of the housing finance sector in India Key players dominating the segment and their dynamics Factors driving aggressive demand for housing   The housing...