The beauty industry has gone through some significant shifts in the last few years, and while there was a dip in spending during the height of covid, current market research says that beauty and personal care spending will top $784.6 billion by 2027! If you want your business to get a piece of the pie, here are some trends for 2023.
1. Beauty Brands are Focusing on Hyper-Personalization
80% of consumers are more likely to purchase if a business offers a personalized experience. Specifically, 58% of shoppers in the beauty industry are more likely to buy from a business that provides an online quiz to recommend specific products that are "just for them." Haircare company Prose is known for their 25-question quiz to create custom formulas for shampoo, conditioner, and other hair care products. Ulta Beauty uses tech company Revive's Digital Health-Beauty-Wellness Platform to make personalized skin diagnostics, targeted product recommendations, and the ability to purchase products quickly. Personalization can help differentiate your beauty brand from competitors.
2. At-Home Treatments are Not Going Away
Covid forced consumers to maintain their beauty regimens at home. Everything from hair to nail care was now an in-home affair. Sales of hair clippers rose 166%, and spending on nail products increased 24%. Many of 2020's top Google search terms were related to at-home beauty and skincare treatments. While we might be stepping back into salons, demand for at-home self-care is expected to remain high.
3. Clean Beauty Is In
More women are questioning the ingredients and chemicals used in their beauty products. 68% of people are looking for products described as "clean," while 59% are influenced by products described as "natural and organic." More importantly, women are reading behind the label and are looking to brands that give transparency in their products. While creating genuinely natural and organic products can be pricey, the global market value for these products is expected to grow to more than $18 billion in the next five years.
4. The Eyes Have It
Sales of eye makeup soured during the height of mask-wearing. Mascara purchases are up 58%, eyebrow makeup 35%, and eye makeup up 19% from 2019. While many are now going maskless, the focus on the eyes isn't dwindling.
5. Men Want Beauty Too
The men's global beauty and fashion products segment has grown faster than women's over the last decade. Brands like Chanel, Estee Lauder, and Sephora have all rolled out men's products. But, even traditional beauty brands that target women have seen sales boost by featuring men due in large part to the "Korean Wave" phenomenon. About 75% of South Koreans have weekly beauty or grooming treatments.
6. Continued Calls for Diversity and Inclusion
Rihanna was a game-changer when she went all in on diversity and inclusion in her Fenty beauty brand. Fenty Beauty was named on Time's list of The 25 Best Inventions of 2017 and now features 50 shades for nearly every woman to have makeup that matches her complexion. Multicultural beauty products are growing at a rate double that of the conventional beauty market, and black women spend 80% more on beauty products than their non-black counterparts. Thanks to Fenty Beauty, more brands are offering inclusive makeup options (although many black women say it's still not enough).