Beauty Is Big Business, With The Beauty And Cosmetics Market Estimated To Generate $445 Billion In Annual Sales Worldwide.
The beauty industry thrives on novelty with its non-stop product launches and a never-ending stream of trends born on social media. Beauty is big business, despite current world market conditions, the global beauty and personal care industry is booming. The beauty and cosmetics market is estimated to generate approximately $450 billion in annual sales worldwide. The United States represents 24 percent of the global cosmetic market, with estimated total revenue of about 62.46 billion U.S. dollars and employing about 63,816 people. Revenue in the Cosmetics and Personal Care market amounts to US$39,168m in 2018. The market is expected to grow annually by 6.5 % (CAGR 2018-2021). Here are the biggest trends in the Beauty industry for 2018.
The biggest all-encompassing beauty trend is that for bespoke. In today’s digital era, with the apps and technology we have, it's only natural that we should have customizable beauty products. The main aim of this concept is to provide the consumers with the best possible beauty products customized for their individual needs by gathering data via web-based questionnaires and remote expert recommendations. With industry's late move towards greater diversity, brands are putting you first. From a personalised approach to skincare which tackles anti-ageing by factoring in DNA analysis by ALLÉL’s case, Eyeko’s bespoke mascara service and make-up (such as Trinny London’s computer-generated prescription of products). It’s no longer one-size-fits-all.
Beauty in every shade: The idea notion that beauty brands would sell makeup in a range of shades to fit every skin tone seems like a basic business necessity, and yet the industry has consistently fallen embarrassingly short on the representation front. At a moment in history when we are beginning to see more diversity on the runways, the beauty industry is also betting big by offering a broad-shade spectrum of foundations and concealer. The recent surge in foundation parity has been due to the brand-The Fenty, the brainchild of superstar Rihanna. The Filt’r foundation of this makeup line comes with 40 shades offering an option for those who had been largely ignored by the beauty industry. The sell-out success of Fenty Beauty’s foundation inspired other brands to launch their own-shade expansive collections such as Kylie Jenner’s Kylie cosmetics.
The Beauty industry has always targeted women for its beauty and grooming products but nowadays increased options for men’s personal care products are emerging. Brands are not just including men but also making them their core target market. Personal care and pharmaceutical companies have been selling personal care products such as razors etc for a long time. Today’s brands are offering gender-neutral beauty products to attract male consumers who approach masculinity differently than previous generations. Incumbent brands including Tom Ford, MAC, and Marc Jacobs have launched gender neutral makeup lines. Companies like Clinique, Calvin Klein, Asos, and Yves Saint Laurent etc also offer makeup for men.
Bunnies don’t look cute in blush! "Cruelty-free" has become something of a buzzword in the beauty industry. Cruelty-free cosmetics are also known as vegan cosmetics. Cruelty-free cosmetics are those products that are manufactured without being tested on animals. The products undergo final testing in-vitro or on humans. According to a recent study, over one-third of women prefer to buy beauty products from cruelty-free brands. Major brands are increasingly eliminating animal testing from their procedures such as Urban Decay, Kat Von D, The Body Shop, Milani, Charlotte etc.
Hubert de Givenchy once said, “Luxury is in each detail.” However, in the past year, the cornerstones of luxury are being challenged in retail, product, and experience. Consumers no longer need to pay the high price tag to receive many of the perks of a luxury product. This is not to say that traditional luxury is obsolete, but it will change. Within the luxury price-point specifically, new trends will continue to emerge that showcase consumer values in a bigger way.