With the flourishing fashion and entertainment industry, the demand for latest cosmetics is increasing significantly. The kiosks include 90 products across its four major categories beauty, bath & body, face, and hair. On the basis of gender, the women segment led, in terms of the cosmetics market size in 2019, and is expected to continue to grow with robust CAGR during the cosmetics market forecast period. Moreover, prolonged exposure to such products results in the continuous deposition of toxic ingredients in body cells that can eventually cause adverse effects. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the cosmetics market players. What was the value of the global makeup market in 2021? Please create an employee account to be able to mark statistics as favorites. The Asia Pacific region dominated the global market in 2021. Global Color Cosmetics Industry Historically, the lions share of beauty products have been purchased in brick-and-mortar stores, but thats changing rapidly, with online sales projected to make up 48% of the total by 2023. Moreover, the cosmetics market across the globe has witnessed continues and sustained growth over years, owing to rise in beauty-conscious female population. The market research is offered along with information related to key drivers, restraints, and cosmetics market opportunities. The range also includes loose powder, which is offered in four shades. Pre-assembled Student Kits are available to purchase through Customer Service . 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. Black consumers account for $1.3T in buying power; the Black haircare industry reportedly represents a $2.5B market. All rights reserved. In addition, rising establishment of mega stores and brand stores in developing countries such as India, China, and others and the availability of a wide range of cosmetic products is augmenting the market size. Cosmetics Market - 2020 Annual Report - Rapport Annuel 2020 A market in which L'Oral is the global beauty leader. However, thats changing rapidly, with online sales projected to make up 48% of the total by 2023. Remarkable job and great efforts by your research team. Existing corporations have focused on growing brands founded by people of color to target disparities in traditional beauty products and cater to underserved markets. Manufacturers are changing their product branding and advertising strategies to accelerate their sales across various countries. the global market value of natural cosmetics is projected to hit $50.5B by 2027. Email marketing is a highly effective ecommerce strategy for beauty marketing teams. Show publisher information Covid-19 caused interest in categories like makeup which was already falling to further wane as consumers had fewer social engagements. Furthermore, the pandemic adversely affected the global cosmetics products market, resulting in a sharp drop in sales. Consumers are wary of using products that contain harsh chemicals. 18, 2020 at 6:46 a.m. An Infographic Representation of Makeup Market, To get information on various segments, share your queries with us. Analyzing a16zs investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? Certain brands will benefit by working with mega influencers and entrepreneurs like Huda Kattan, Nyane Lebajoa, or James Charles. Coming out of the pandemic, as economic recovery looks different for consumers with different wallets, there is opportunity at multiple price points. The cosmetics industry has an annual growth rate of 4.75%. Looking forward to work together on similar projects, We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. Supermarkets/Hypermarkets Segment to Dominate the Market Due to Growing Demand for Variety of Options. The service also works well for customers purchasing products they already know and love. Companies in the space often promote a feeling good is looking good ethos. The largest age group of visitors are 25 - 34 year olds (Desktop). 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. opens in a new window Click Here. Touch device users, explore by touch or with swipe gestures. Urban offers on-demand outdoor fitness, osteopathy, and physiotherapy services in addition to massages and nail care. Looking ahead, expect functional fragrances to be incorporated into more beauty products and categories, including experiential beauty offerings such as spas and wellness hotels. Color cosmetics and fragrances saw particularly impressive growth on the back of the wider recovery, with a notable increase in consumers trading up. Mac Cosmetics is partnering up with the Whitney Houston Estate to launch a makeup range. 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. It has an annual turnover of over $1 billion and has over 500 independent stores around the world. 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. 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. The industry has recently observed an emerging trend of men using cosmetic products in their daily lives. China-based tech giant Alibaba offers livestreaming and AR features which it has used to attract luxury beauty brands to its e-commerce platform. 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. When we zoom in on the skincare market (which includes lotions, creams, moisturizers, anti-aging serums, and cleansers), the top four performers are publishers rather than skincare brands. Since Fenty Beautys launch in 2017, inclusive beauty has become an industry buzzword, encompassing new demographic markets that are becoming increasingly important for the beauty industry to target. Moreover, online sales channel has increased consumer reach, making it key source of revenue for many companies. However, more sophisticated approaches are starting to emerge, such as that taken by early-stage startup Zamface, which offers a platform to help viewers find a livestreamer with similar facial features to them. TikTok especially is gaining traction as a beauty product education and exploration platform, boosting sales when products go viral. Amazon has made major strides in expanding its beauty retail channel. In-house incubators offer a way for conglomerates to build relationships or even gain equity stakes in these companies paving the way for future acquisitions as it becomes clear which early-stage brands will mature and which will fizzle out. So, where do some of the top beauty brands and retailers rank in terms of organic search market share? Certain powders also help to reduce the look of pores and fine lines. Big companies like Este Lauder, LOral, and P&G are really an amalgamation of lots of brands, and when they roll up all those brands, they hit a revenue number. We had a seven-year cycle of high-glam makeup, and currently minimal no-makeup makeup is having a moment. We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Often, though, lesser-known beauty experts who have a more dedicated, loyal, and sincere following deliver better results for brands. 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. Though customer demand and preferences will evolve as beauty standards do, the fundamental human desire to be attractive and achieve wellness through self-care will remain the same. A Forrester study found that 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience, while Accenture found that 75% of consumers are more likely to make a purchase when recommendations are personalized to them, propelling the push for brands to personalize and differentiate offerings. Beauty sales declined as much as 30% in the first half of the year, according to McKinsey. Even as restrictions lift, the shift to e-commerce is unlikely to reverse. 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. 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. This is a very good piece of work and will be very helpful to us going forward. maccosmetics.com Audience Demographics Audience composition can reveal a site's current market share across various audiences. CeraVe, e.l.f. The products are available on both online and offline platforms. In the US, personal care and beauty online sales totaled a whopping $62.6B last year, up from $53.1B in 2019. formId: "6249b226-16fe-449e-89bb-234c2fdc506f" The Colorado-based beauty brand emphasizes ingredient transparency and restricts over 1,800 ingredients in its formulations (compared to the 30 restricted by US regulations). The beauty company opened its flagship store in July 2020 and launched a new virtual store on its website at the same time. Though theres been a lot of buzz around more effectively targeting people of color in the beauty sector, theres still much to be done. Brands targeting older demographics will want to focus more on Facebook and Pinterest. Certain areas within beauty, such as skincare, became an area of focus instead as people looked for ways to de-stress. Overall, the online channel for beauty in the U.S. grew by 5.6% in 2020, whereas the offline channel contracted by 1.2%, according to Statista. 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. The outbreak of the COVID-19 pandemic, manufacturers have increased social media advertisement of using herbal skin care products to reach a large consumer base. A. Beauty statistics - Finder UK 2020 2021/2020 2019 2020/2019 2018 2019/2018 2017 2018/2017 CAGR; . There is still no [cosmetics] company that has been able to integrate personalization into their business models, Shiseido president Masahiko Uotani said in an interview with the Nikkei Asian Review. Statista. The research report analyzes the industry in-depth and highlights crucial aspects such as prominent companies, product types, and sales channels. Japans Shiseido exemplifies the omnichannel approach. Of course, depending on the competitiveness of the keyword, companies may have to pay a significant amount per click in order to earn the top sponsored spot. The Marketing Strategies of Nars vs Mac | MintTwist When autocomplete results are available use up and down arrows to review and enter to select. Over the long term, SEO is better than PPC, providing both compounded returns and a much higher ROI. When we compared informational vs transactional searches, online publishers really pulled ahead. 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. After all, Mr. Pinatel avowed passionately that MAC has always lead in inclusivity.. Up to 70% of surveyed US consumers said they would pay more for sustainable packaging, per McKinsey. MAC Cosmetics Target Market- Market Segmentation - 440 Industries Looking forward to work together in the future, It has been a delightful experience working with you guys. July 12, 2022. For example, Fenty features a face shade finder on its website and enables site visitors to choose from 40 different shades of foundation. In addition, growth in consciousness about external beauty along with individuals internal intellect has become one of the major driving factors for use of cosmetics in the global market. U.K., Germany, France, Italy, Poland, and Spain are the prominent markets of . You need at least a Starter Account to use this feature. Male grooming has expanded beyond face washes, moisturizers, and basic hygiene products to include eye creams, face masks, sunscreen, makeup, and more over the past few decades. Moreover, increase in urbanization, rise in working class population, and competitive pricing boosts popularity of hypermarkets in developed and the developing region. Are you interested in testing our business solutions? At the rate the planets resources are being depleted, the shift to lab-grown ingredients may arise out of necessity. As a Premium user you get access to the detailed source references and background information about this statistic. Custom printing, in which companies formulate products specifically for each user. Following its $600M purchase of a 51% stake in Kylie Cosmetics in 2019, Coty snapped up a 20% stake in Kim Kardashians beauty business, In September 2019, SC Johnson purchased mens skincare brand, Edgewell announced plans to buy mens grooming brand, It was reported in October 2020 that mens personal care company. This shift is accelerating as government regulation in the EU and select US states pushes CPG companies toward adopting more sustainable alternatives. Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. Global Cosmetics Market Analysis | Size & Forecasts Neutrogena, for example, put out compostable wipes. In spite of an unprecedented crisis of supply in 2020, the global cosmetics market is a dynamic market which saw a significant recovery in the second half, driven by strong consumer demand. 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. These are a relatively new marketing strategy that work especially well for the cosmetics industry where personalization is important. In the physical Shiseido flagship store, customers wear connected wristbands that scan product signs and add items to digital carts. Pause Well-Aging focuses on menopausal skincare products that address perimenopausal concerns such as hot flashes, night sweats, and skin elasticity. With smart home concepts continuing to gain traction, beauty brands will have to consider how voice technology and partnerships with big tech could be used to address shopper pain points, from personalized recommendations to conveniently booking reservations. The company raised a $4M seed round in May 2021. Thats why the global market value of natural cosmetics is projected to hit $54B by 2027. Cosmetics Market | 2021 Annual Report - L'Oral Finance In addition, the popularity of premium beauty products among women and millennials is driving the makeup market growth over the forecast period. This includes Asian beauty markets like China, which is a hotbed for virtual beauty thanks to its advanced mobile technologies and tech giants. How much is the global makeup market worth? Estimated market of more than 200 billion euros, Growth of the worldwide cosmetics market over 10 years (in %), Breakdown of the market by geographic zone (in %), Breakdown of the market by business segment (in %), Growth of the skincare market compared with the global beauty market. The rising awareness toward personal grooming along with the expanding number of brands producing a wide range of cosmetic products is favoring market expansion. Black dermatologists make up just 3% of the field in the US, which has marked effects on beauty product development. Some companies are also introducing waterless or water-reduced initiatives to salons. In addition, application of cosmetic products on a daily basis could be dangerous for skin. Social media has become a critical way for teenagers to find the trendiest products in line with their clean beauty needs and beyond edutainment for beauty and skincare products. 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. 2023 Allied Market Research. Beauty brands are continuing to connect with consumers by employing varied pricing strategies that appeal to wider swaths of shoppers. 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. The market of Europe is characterized by the occurrence of various international cosmetic brands in countries such as France, U.K., and others. 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. Uniquely, The Innovation Lab is the integration of the best of both digital and retail worlds coming together for an AI beauty encounter. This has also decreased the negative impact on the environment to some extent. Prices for natural ingredients rose in exports from developing countries due to higher freight prices and longer shipping delays. The makeup category suffered losses, especially among teens, with Piper Jaffray reporting a 21% year-over-year decrease in spending among that group. Only three of the top ten are beauty retailers. As pledging to reduce single-use plastic becomes fundamental, the shift toward sustainable packaging is spurring new business models. For example, Hims & Hers offers telehealth consultations and prescriptions for a broad array of health issues ranging from infections to mental health, but its services also extend to anti-aging creams and haircare products. Beauty trends come in cycles. Social media marketing is essential for beauty companies, but choosing the best platform depends on the brands target audience. How Diversity Made MAC Cosmetics A Billion-Dollar Brand For better delivery of our new release, Please help us undestand your interest Industry and Frequency that you prefer to get the new releases. Beauty Brands Focus on Acquisitions to Expand Product Portfolio. Tech companies extensive reach which can include search data, smart home devices, AI capabilities, e-commerce platforms, and more offer compelling opportunities to cash in on the beauty market. A variety of cosmetics are available in powder form, whether as loose or pressed powder, such as face powder and powder foundation. Companies that provide business-to-business (B2B) booking and on-demand platforms for salon and spa services account for 12% and 11% of deals in the industry, respectively. Cosmetics products manufacturers are switching their preference to produce hand sanitizers, cleaning agents, and personal care products, which have been gaining major demand during this pandemic. The report was very accurate and as per my requirements. We know where we will be getting business intelligence from in the future., Thank you for sending the market report and data. Around 11% of beauty and health online shop users in the United States say they are likely to use Mac Cosmetics again. 2020 was a redefining year for every industry including beauty. The face segment is expected to dominate the market as most of the consumers apply creams and powders on face compared to other body parts, which increases its demand in the market. Education will continue to be key as brands lean into transparency around both natural and synthetic ingredients to prove their safety and efficacy. (For more, read our brief on How Material Innovation Will Improve Sustainability In Beauty & Personal Care.). The role of the physical store is still important, but its focus has shifted to experiential retail. Why do they outrank the biggest beauty brands? In fact, Dotdash, the parent company of Byrdie, invested more than $50 million into content over a three-year period across their publishing portfolio. Join 840,000+ CB Insights newsletter readers. By gender, it is divided into men, women, and unisex. 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. Legacy brands must adapt to these changes or they risk losing market share to startups utilizing different business models. Alongside ModiFace, Perfect Corp is a leader in the space, and its tech is used by myriad beauty and tech platforms. Moreover, powdered contents are suitable for oily skin as they help absorb oily residue. The online channel for beauty in the U.S. grew by 5.6% in 2020, while off-line sales contracted by 1.2% in the same year. A. The highly visual nature of the beauty industry makes video marketing a critical strategy for brands. Thank you for requesting a call back, our sales representative will get in touch with you shortly! The website provides the same product information and customization options as the physical store. As a Premium user you get access to background information and details about the release of this statistic. 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. At checkout, customers scan their wristbands and receive their items immediately. Read on for a high-level look at the beauty industry, trends that matter, and cosmetics marketing strategies that will create the most success. As the trend continues to gain traction, understanding the difference between niche and underserved audiences remains crucial, as there exist many demographics with untapped potential. These companies formulate and package products to improve convenience and user experience, which eases consumers into using more sustainable products without changing their routines to accommodate, for instance, scoopable shower gels or chewable toothpastes. maccosmetics.com's audience is 24.35% male and 75.65% female. Target also has its own accelerator program, Target Takeoff, to mentor emerging beauty brands. The range includes liquid foundation, stick foundation, concealer, and compact, available in five shades. A few brands are working to cater to older consumers, such as Gen Xers or baby boomers. With ever-increasing online sales, digital marketing is increasing in importance to beauty brands. The cosmetics market effecting factor are changing lifestyle and increasing demand for natural ingredients in cosmetic products. 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. 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. Amyris brand Pipette, which was launched in 2019, expanded into Target in February 2021. "Assisting You in Establishing Data Driven Brands", Region : Global | Format: PDF | Report ID: FBI102587. The rising concern about skin problems due to wearing makeup has affected the global demand, with the use of beauty products with chemicals resulting in acne, breakouts, and other conditions. Skincare brand Proven, for example, says it feeds consumer data into its AI platform which contains information on more than 100,000 products, 8M+ testimonials, 4,000+ scientific publications, etc. For example, in April 2021, private equity giant Carlyle Group took a majority stake in cosmetics company Beautycounter in a deal valued at $1B. Globally, the UK has the seventh-largest cosmetics market, with the US and China taking the top 2 spots. 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. (Clients can read more about independent and corporate-owned beauty accelerators and incubators here.). This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cosmetics market analysis from 2019 to 2027 to identify the prevailing market opportunities. These stores offer a variety of products to consumers and every individual has the liberty to validate the genuineness of the product. It even opened a brick-and-mortar hair salon to showcase its tech. Google works with brands to use its search data to better understand beauty shoppers preferences. At-home devices, which can measure user conditions, like the emergence of dark spots or surrounding environmental concerns, on a daily basis. Conversely, some brands are looking to offer consumers an alternative to doctor visits for certain issues. In doing so, the incumbent is diversifying its product portfolio and catering to new segments of shoppers whether they are seeking more affordable product lines, like The Ordinary, or more expensive ones, such as La Mer skincare, also owned by Este Lauder. Some companies are simply revamping their labels to highlight clinical results. The data offered to us was exactly what we were looking for. However, an analysis of Google organic search market share in the beauty industry reveals a surprising reality. 2020 was a rollercoaster year for the beauty industry. Terakeet analyzed 3,168 high-value, non-branded beauty industry search queries, which account for 112.7 million annual Google searches in the U.S. The top companies in the cosmetics market are Avon Products Inc., Kao Corporation, LOreal S.A., Oriflame Cosmetics S.A., Revlon, Inc., Shiseido Company Limited, Skin Food Co., Ltd., The Estee Lauder Companies Inc., and The Procter & Gamble Company and Unilever Plc. Also, the COVID-19 crisis restricted supply chains in every industry, including fashion and cosmetics. The artist is very important to the community, and communities are very important to us we want to emphasize that. Mr. Pinatel said. And this isnt just the case for informational keywords. In October 2018, MAC Cosmetics launched matte Powder Kiss lipsticks in different shades. Going forward, expect to see beauty brands and tech giants alike turn to virtual try-on to gather shopper data and make more personalized product recommendations. Such factors contribute to the growth of the powder segment. Each virtual look is created based on whats trending and popular near each respective store. Safety and solidarity during the Covid-19 crisis, LOral demonstrates solidity and resilience, Committed to protecting people and the planet. If customers dont have a superior experience, theyre not likely to spread the word to friends or on social media. It is also a generational development: according to Google, almost 70% of millennials watched an online tutorial on YouTube during the year. Based on distribution channel, the market is segregated into supermarkets & hypermarkets, exclusive brand stores, online/e-commerce channels, and others.
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