When autocomplete results are available use up and down arrows to review and enter to select. Pre-assembled Student Kits are available to purchase through Customer Service . 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. Companies that sell primarily to Millennials and Gen Z will want to focus on Instagram, TikTok, Snapchat, YouTube, and Pinterest (to a degree). AI retail is firmly what he believes is the next frontier. The Marketing Strategies of Nars vs Mac | MintTwist The increasing collaboration of market players with different brands and stakeholders to provide a variety of products along with improving their supply chain management is propelling the regions demand for cosmetic products. Rise in demand for various cosmetics products among customers makes way for manufacturers to come up with herbal or organic skin care products along with affordable prices and eco-friendly packaging. Virtual try-on tech leverages augmented reality to allow shoppers to test how different beauty products will look without needing to reach for the makeup remover wipes afterward. 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 global cosmetics market size was valued at $380.2 billion in 2019, and is projected to reach $463.5 billion by 2027, registering a CAGR of 5.3% from 2021 to 2027. Beauty brands such as Unilever, Este Lauder, LOral, Glossier, and Clinique are nearly invisible in the non-branded organic search landscape across skincare, makeup, and hair care. MAC Stock Price | Macerich Co. Stock Quote (U.S.: NYSE) - MarketWatch Leading beauty brands In 2020, the leading beauty manufacturer was French cosmetics company L'Oral, which recorded $33.93 billion in revenue. (Clients can read more about independent and corporate-owned beauty accelerators and incubators here.). Gen Z-focused brands such as UK-based Plenaire and Bubble have also been on the rise. Amazon runs a dedicated beauty supply store that sells salon products and equipment to businesses. The Middle East & Africa and Latin America makeup products markets are assisted by the continuous support of the government for skin care product manufacturers to produce products at affordable costs. Look for brands to continue to develop hyper-personalized offerings in order to differentiate themselves from competitors and cater to consumers more effectively. Skin care products play a major role in daily healthcare regimen of individuals. In-depth analysis of the cosmetics market segmentation assists to determine the prevailing market opportunities. Long-term and extensive use of chemical rich shampoos, serums, and conditioners lead to heavy hair fall problems. For instance, creating and promoting engaging content across multiple channels helps beauty companies increase brand awareness and create authentic relationships within their audience. This level of virtual retail begs the ultimate question: will robots have a permanent place in beauty? Furthermore, increase in penetration of various online portals globally and rise in number of offers or discounts attract large consumer base to purchase skin care cosmetics products through online channels. The data offered to us was exactly what we were looking for. LOral, for instance, has credited its diverse pricing strategy for enabling it to absorb even severe market conditions like in 2020.. ET by Tomi Kilgore. The rising popularity of powder foundations among young users who demand light coverage is driving segmental growth. Fortune Business Insights says that the global market size was USD 40.37 billion in 2021 and is anticipated to reach USD 61.34 billion by 2029. Genomics is also playing a bigger role in personalizing beauty recommendations. Watch for the beauty and personal care category to follow the food and beverage industry, as companies in the space have adopted biodegradable and recycled plastics more broadly. 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. 2020 2021/2020 2019 2020/2019 2018 2019/2018 2017 2018/2017 CAGR; . On the basis of distribution channel, it is categorized into hypermarkets/supermarkets, specialty stores, pharmacies, online sales channels, and others. Certain areas within beauty, such as skincare, became an area of focus instead as people looked for ways to de-stress. Its one of the most effective means of building brand love. Social media strongly influences this generation, with attractive product promotions showcasing newer trends. "Assisting You in Establishing Data Driven Brands", Region : Global | Format: PDF | Report ID: FBI102587. For example, D2C cosmetics brand. In 2020 the company invested in the social commerce software company, Replika Software, in order to increase ecommerce sales and peer-to-peer selling. More than half of Gen Zers believe that gender is nonbinary and encompasses a spectrum instead. 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. The surge of consumers focusing on self-care amid the pandemic has only accelerated the emergence of wellness as a holistic trend extending to traditional beauty areas like skincare. Remarkable job and great efforts by your research team. What are the product segment? The report was very accurate and as per my requirements. Allure and Byrdie rank first and second, and their websites attract between 60 and 80 million organic search visitors overall each year. Tech is playing a bigger and bigger role in the beauty industry. LOral has been a pioneer in social commerce through the years, including livestream shopping. region: "na1", The dermocosmetics market 2020 The only cosmetics market that recorded growth in 2020. Recently, the virtual try-on space has seen a flurry of activity, including: Beyond skincare and makeup, hair and nail color also present use cases for virtual try-on tech. This inside-out approach emphasizes preventing issues that other beauty products may only be able to cover up. The largest age group of visitors are 25 - 34 year olds (Desktop). Looking ahead, expect functional fragrances to be incorporated into more beauty products and categories, including experiential beauty offerings such as spas and wellness hotels. This also helps in increasing revenue of companies operating in this industry. The Innovation Lab in Queens Center is not the brands trial run. (For more on the future of the smart home, clients can check out this report.). Analyzing a16zs investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? In February 2021, biotech beauty company Codex Beauty Labs announced a new labeling strategy to include clinical efficacy data on packaging for all its skincare products. 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. As natural beauty ingredients are gaining popularity, the need for natural preservatives is also rising, resulting in research opportunities for organic and natural constituents. The cosmetics industry has an annual growth rate of 4.75%. Quizzes are pervasive in the burgeoning direct-to-consumer (D2C) personalized haircare market, which has seen companies emerge across geographies like the US (. On the basis of category, the market is divided into skin and sun care products, hair care products, deodorants & fragrances and makeup & color cosmetics. Overall, the No. The global cosmetics market recovered markedly in 2021, rebounding to 2019 levels thanks to a very dynamic skincare category and growing digitalisation driven by the boom in e-commerce and social commerce. Furthermore, 17 of the top 22 performers are publishers, capturing 62.3% organic market share. Face Segment to Dominate the Market Owing to Rising Product Demand. Estee Lauder's MAC Cosmetics brand stands out as the leader in the overall market with a 5.1% share, and lip products at 13%. Strategic B2B Content Marketing: How-to Guide for 2022, What is Content Marketing? 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 6 Biggest Issues Facing the $532 Billion Beauty Industry The beauty industry experienced deep pain over the past year as it saw some big shifts. Such factors contribute to the growth of the powder segment. Along these lines, sustainability and a focus on environmental impact has taken on urgency at major beauty players looking to appeal to an increasingly eco-conscious population: Some, like LOral and Este Lauder, have announced goals to reach carbon neutrality, while others have begun innovating in more specific areas, like reusable packaging and refillable business models. Perfect Diary uses the same production factories as large, reputable luxury brands like YSL and Dior. How MAC Cosmetics Went From A Pink Crayon To Worldwide Brand 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. We use cookies to enhance your experience. For example, major retailers like Sephora, Macys, and Bluemercury have committed to the 15 Percent Pledge a promise to commit 15% of shelf space to Black-owned businesses. For instance, in May 2021, Huda Beauty, a cosmetic brand headquartered in Dubai, UAE, announced the launch of its new cosmetic collection, GloWish. Porters five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplierbuyer network. Download Terakeets Beauty Industry Report to see which brands are winning (and losing) in Google organic search market share. U.K., Germany, France, Italy, Poland, and Spain are the prominent markets of . Start reading instantly.This Report and over 29,716+ more Reports, Available with Avenue Library. However, thats changing rapidly, with online sales projected to make up 48% of the total by 2023. The rising inclination of consumers in terms of health awareness and toxicity created by the products is expected to restrict the product demand in the long run. Regular makeup use is harmful for skin as it breaks the skin's protective layer. Sephora further deepens the engagement by offering Groups of like-minded individuals. 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. Even so, is the practical consumer ready to virtually test their lipstick shades on an AR mirror? The highly visual nature of the beauty industry makes video marketing a critical strategy for brands. Book your free consultation and let our research experts help you with your needs/problems. Which is the leading product in the market? Cosmetics industry - statistics & facts | Statista Rising Awareness Regarding Adverse Effects of Chemical Formulations to Hamper Product Sales. Chemicals used in the production of cosmetic products can harm an individual's skin and the daily application of these products could be dangerous. It has over 7000 product offerings and 100 eye shadow shades. As the space becomes more crowded, watch for companies to differentiate themselves with pairings of inner and outer products, such as ingestibles and topical creams, marketed around beauty benefits. 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. Please create an employee account to be able to mark statistics as favorites. Indonesia, which has the largest Muslim population in the world, offers a, Brazil represents one of the fastest-growing global markets for beauty and personal care. Companies like Deciem are using transparent pricing models and established, science-backed ingredients that are cheaper to manufacture ultimately driving the price of products down. Thats why the global market value of natural cosmetics is projected to hit $54B by 2027. It can be used to nurture relationships, promote special offers, recover abandoned carts, highlight newly published content, and more. Previous perks have included MAC Cosmetics coupons for 25% off storewide and a free gift with orders of $65+. These are already being offered by companies like Neom Organics and Aeroscena. Chart. 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. Import and export restrictions on goods and quarantine and lockdown measures imposed by governments are key challenges exporters are facing during this pandemic. Furthermore, the process of growing ingredients in a lab reduces the devastating impacts of farming, fishing, extraction, or the involvement of intermediaries which can drive up the price and carbon footprint of raw materials extracted from the earth in lengthy, global supply chains, said sustainability consultant and All Earthlings founder Sarah Jay in an interview with Coveteur. A. Nielsen notes that 92% of people trust recommendations made by friends or family more than any other advertising. Companies are focusing on developing powder based products that also protect the skin other than just enhancing the appearance. the media outlets selected for the campaign are highly relevant to the market base. In the context of e-commerce growth, social commerce is booming. Based on customer preferences, demographics, and behavior, email marketing also allows brands to deliver a more personalized experience to customers. The report includes analysis of regional as well as global cosmetics market trends, key players, market segments, application areas, and cosmetics market growth strategies. Beauty Chef, a startup that has raised $6.8M, is already marketing its products by linking beauty to gut health. opens in a new window Click Here. Notably, virtual try-on can also help brands personalize the beauty shopping experience, enhancing product discovery and making tailored recommendations about foundation shades, skincare products, and more. A. They simply lack the SEO strategy and long-form content needed to compete effectively in Google. Furthermore, the pandemic adversely affected the global cosmetics products market, resulting in a sharp drop in sales. And while full-coverage and colorful makeup looks have taken a backseat to home quarantine orders, Mr. Pinatel expects high-glam to come back in a big way post-pandemic. Supply Chain Disruptions Due to the Pandemic Affected the Market Growth. Bottom line, beauty brands are missing out on a major opportunity when it comes to organic search traffic. At The Innovation Lab, consumers no longer have to swatch foundation shades endlessly, checking in-store and outdoor light before making a purchase. The Body Shop launched its refill stations globally in March 2021, allowing consumers to refill shower gels, hand soaps, shampoos, and conditioners in stores. Cosmetics Market Size, Share, Industry Trends & Analysis 2021-2027 Conversely, some brands are looking to offer consumers an alternative to doctor visits for certain issues. To compete online, beauty brands must develop new, innovative ways to capitalize on social channels. New formats for ingestible beauty are also emerging, including companies offering daily skincare shots (Akiva), collagen-infused drinks (SkinTe, Pop & Bottle), and even meal kits (Sakara Life, Urban Remedy). The research report analyzes the industry in-depth and highlights crucial aspects such as prominent companies, product types, and sales channels. MAC PRO | MAC Cosmetics - Official Site 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. After 18 months of work, MACs concept store is another response to its loyal fanbase. Big brands with brick-and-mortar locations were hit hard by COVID-19 lockdowns, forcing marketers to come up with new ways to sell to customers. It certainly looks that way. Countries around the world imposed lockdowns, and curfews, which has hugely impacted lifestyles, health & wellbeing, and affected manufacturing industries. 2023 Allied Market Research. So, where do some of the top beauty brands and retailers rank in terms of organic search market share? Legacy brands must adapt to these changes or they risk losing market share to startups utilizing different business models. Cosmetics Market is growing with the CAGR of 5.8% during the forecast period of 2022 to 2029. Videos give people the opportunity to see a product in action, which is particularly important for cosmetics products. Age Distribution 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ Gender Distribution Female 75.65% Of course, to get into the hands of teens, parents must also be convinced that these products meet a real need and are safe for regular use. In 2019, the company launched in-app checkout for shoppable posts and has since rolled out features such as augmented reality shopping, in-app reminders for new product drops, and even shoppable videos expanding its e-commerce role for beauty products being promoted by brands and influencers. Beauty sales declined as much as 30% in the first half of the year, according to McKinsey. 2 is Clinique, which is also owned by Estee. Its AI Skin Diagnostic tool leverages AI-powered algorithms to analyze a users skin across dimensions including wrinkles, redness, oiliness, texture, and more to make personalized skincare product recommendations. Hair color brand Madison Reed, which grew sales by 130% and nearly doubled its customer base in 2020, offers live virtual try-on on its website for customers to explore different shades. With an ever-increasing percentage of the buyers journey happening online, beauty brands must have a clear digital marketing plan. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. Rewind: Read our breakdown of 2020-2021 beauty sales. Manufacturers are changing their product branding and advertising strategies to accelerate their sales across various countries. Neutrogena, for example, put out compostable wipes. 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. . Moreover, online sales channel has increased consumer reach, making it key source of revenue for many companies. But its place in the beauty world is more secure than ever. This is also considered a marketing strategy for many bog beauty firms for brand building and market acquisitions. The base year calculated in the cosmetics market report is 2019. Myro and By Humankind allow users to refill deodorant, while Kjaer Weis and Asa Beauty allow consumers to restock makeup. 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. 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. A. With the added convenience and the short wait times some brands have orders ready in as little as 30 minutes expect the option to be available long after Covid-19 subsides. For instance, in October 2022, Earth Rhythm announced its entry into the offline retail market with the launch of 12 kiosks in India's Tier 1 and Tier 2 cities, New Delhi, Chennai, Chandigarh, Raipur, Bangalore, Mumbai, and Dehradun. maccosmetics.com Audience Demographics Audience composition can reveal a site's current market share across various audiences. With the rise in skin problems due to chemically contained cosmetics, people shifted toward more natural and organic products. Each virtual look is created based on whats trending and popular near each respective store. The beauty and personal care industry generates nearly 120B packaging units every year, and nearly 91% of these fossil fuel-based bottles, wrappers, and other plastic waste are never recycled, accumulating in the ocean and landfills. Today, MAC has opened the doors of its newest design concept. MAC Cosmetics' headquarters is located in Buffalo, New York, USA 14216. Mac Cosmetics is partnering up with the Whitney Houston Estate to launch a makeup range. Beauty 2021-2024 Decoded | Global Cosmetic Industry Some options include: Building vibrant online communities is an effective way to foster brand loyalty and increase engagement among customers. In, Statista. Source: Alizila. This has also decreased the negative impact on the environment to some extent. 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. You can see why SEO is incredibly important for beauty brands. In makeup, Amazon ranked slightly better in position five. Livestreaming, which refers to livestreamed shopping trips where viewers can purchase the items being featured, is offering a new way to engage younger audiences and boost sales. The report covered all the points and was very detailed. Even informational content in the middle of the funnel can grow brand awareness with new prospective customers. Up to 70% of surveyed US consumers said they would pay more for sustainable packaging, per McKinsey. Aug 24, 2022. 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. The global makeup market size was valued at USD 40.37 billion in 2021. However, an analysis of Google organic search market share in the beauty industry reveals a surprising reality. Despite the negative impact of the coronavirus pandemic, the global cosmetics market is expected to recover in the coming years. Set in relation to the 13% usage share of the brand, this means that 85%. Labor shortages in factories and logistics operations due to the pandemic continue to have a serious impact on supply chains around the world. 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. Ultimately, the ingredient transparency trend will likely go more mass market and global across all consumer products. Read our deep dive into SEO vs SEM here for a more thorough comparison. A. Learn more about how Statista can support your business. Annual Reports - The Este Lauder Companies Inc. Meanwhile, tools like Essies ModiFace-powered On Hand tool and Anastasia Beverly Hills The Brow App offer applications in nail polish try-on and brow shaping. Who are the major players operating in the market? Alongside ModiFace, Perfect Corp is a leader in the space, and its tech is used by myriad beauty and tech platforms. For more, read our article, How Byrdie Toppled Billion Dollar Beauty Brands (Without Ads). Accessed May 01, 2023. https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states, Statista. With an annual growth rate of 4.75%, total revenue is expected to top $716 billion by 2025. It is also a generational development: according to Google, almost 70% of millennials watched an online tutorial on YouTube during the year. Its never been faster to launch or grow a new brand with the proliferation of beauty incubators and growth of e-commerce and D2C channels. Beauty Industry: Cosmetic Market Share, Trends, and Statistics - Terakeet 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. Although COVID-19 shifted consumer shopping behavior patterns within the beauty industry, theres no doubt that the industry will continue its current growth trajectory. For example, California-based ManiMe uses 3D scanning and printing technology to create customized press-on nails that are shipped to the customer. Companies that sell clean beauty products can expect to see a surge in demand moving forward. Brands targeting older demographics will want to focus more on Facebook and Pinterest. More and more consumers are using augmented reality when shopping. In 2020, LOral rolled out Signature Faces, a line of virtual makeup products. The line provides makeup filters supported on a range of platforms, including Zoom, Instagram, Snapchat, and more. Moreover, extensive use of color cosmetic products for eyes and lips can also cause many skin diseases and consequential health hazards. But, make sure you include plenty of visuals, whether in the form of graphics, photos, or videos. 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. Some beauty brands are even carrying out clinical studies to test out their products: Juice Beauty and ZO Skin Health both feature real patients results from clinical laboratory studies on their websites. Beauty brands are increasingly learning how to use social media channels for actual sales. Revenue of the cosmetic & beauty industry in the U.S. 2002-2022, Value of the leading global textile exporters in 2021, by country, Vegetable oils: global consumption 2013/14 to 2022/23, by oil type, Cocoa bean production worldwide 2020/2021-2022/2023, by country, World coffee per capita consumption: major consumer countries 2015, Cosmetics industry in the U.S. - statistics & facts, To access this forecast, you need one of our, Research Manager Consumer & Business Insights, Profit from additional features with an Employee Account. Beauty conglomerate LOral (which set up the first beauty startup accelerator in Africa in 2018) offers a variety of internal initiatives to support its commitment to new brands and technologies, such as the Open Innovation Program, the Women in Digital program, its Technology Incubator, and the launch of corporate venture capital fund LOral BOLD. The emerging glamor industry is boosting the demand for various skincare products among the young generation that can alter their appearance. 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. Furthermore, China represents one of the fastest-growing markets for mens beauty and grooming products. In October 2018, MAC Cosmetics launched matte Powder Kiss lipsticks in different shades. And another problem with SEM is that once you stop spending, your results literally go to zero immediately. The market of Europe is characterized by the occurrence of various international cosmetic brands in countries such as France, U.K., and others. To tap into this massive market, among others, grants and accelerators for founders of color have emerged over the past year, including Glossiers and LOrals grants to Black-owned businesses and Sephoras recent accelerator cohort, which included only founders of color. Moreover, powdered contents are suitable for oily skin as they help absorb oily residue. However, in 2020, MAC Cosmetics . In fact, Dotdash, the parent company of Byrdie, invested more than $50 million into content over a three-year period across their publishing portfolio. Which region held the highest market position in 2021? Beauty markets across the globe are developing brands for internal consumption while also exporting them globally.
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