The face of beauty from a year or two years ago may not be exactly what it is now; that’s how fast it changes. It’s such a dynamic industry that trends come and go in a snap. Products pop out of nowhere — each one promising to be better for you and offering more than the ones already in the market.
With the ever-evolving nature of the industry, the statistics, in effect, show significant game-changers, too. Here are all the latest beauty information that you need to know:
Its compound-annual-growth-rate (CAGR) ranges between 5% and 7%. With how fast and high it’s going, it will be close to doubling its current figure in a few years.
This decline can be attributed to the global financial crisis, which paved the way for more affordable and do-it-yourself products in an effort to drive revenues.
These are the people from the working sector and, therefore, have more spending power.
Nowadays, the market is shifting and certain beauty cultures that are different from the Western market are gaining influence. Diversity now plays a big role in the industry.
This number is expected to rise in the coming years (predicted at 19% by 2023), due to a bigger presence of eCommerce channels and online-only brands.
While this statistic is expected to be the same through the years, there’s a growing potential among the male market.
The company sells products under the hair color, skincare, sun protection, make-up, perfumes, and hair care categories. Its market share in Western Europe was estimated at 20% in 2019.
Sales under this category are expected to increase with the interest in natural and clean beauty.
Among beauty buyers worldwide, 25% bought makeup, 19% bought shampoo, and 13% bought skincare products.
This is followed by product samples (36%), ads seen on television (34%), and ads seen on social media (25%).
Other sources are ads seen on social media (39%), posts or reviews from expert bloggers and vloggers (32%), and ads seen on websites (28%).
If COVID-19 resurges in the US before the year ends, the decline may be as high as 35%.
This estimate is compared to 2019 and affected by the mandatory wearing of masks and work-from-home arrangement, making these segments less useful.
Groceries are the top priority now, followed by personal care products and then skincare products and makeup.
In the US, Sephora reported that their sales are by 30% from 2019, as well as Amazon’s beauty section.
Around 58% women wear less makeup now, while 43% have simplified their daily skincare and beauty routines.
Men are shopping online now more than ever (45%) and investing in products that are sustainable and natural (24%), as well as healthy for their skin (24%).
This data supports the insights that online channels are slowly generating more sales for hair color and nail polish products than brick-and-mortar stores do and that consumers are shifting to do-it-yourself, at-home beauty.
The industry is expected to grow at least 5% every year.
Throughout the years, more and more people are spending disposable income on cosmetics; this observation is expected to grow further over time.
This explains the reason why more well-known brands in the market, like L’Oreal and Estée Lauder, remain as the top companies with the biggest revenues.
These channels are followed by mass merchandisers, online channels, and department stores.
This statistic excludes multi-brand stores, like Walmart and Target.
There was a recorded increase in online sales of all categories, especially since the physical stores were still closed during this time.
These are women who value quality and perks over price.
Makeup is the top product that online shoppers purchase every month.
Other factors of purchase intention include cleaner products (42%), eco-friendly products (32%), and education about the ingredients used and their benefits (28%).
Anti-aging products contribute to this rising number and increasing interest in these products comes from the younger market who want to fight signs of aging as early as possible.
This is driven by the growing need for personal grooming, even among the male market.
The growing need for body lotions, sunscreens, and face creams all over the world contributes to this upward trend.
This is followed by other categories, such as make-up, hair care, perfumes, toiletries and deodorants, and oral cosmetics.
Face creams include sun protection cream, skin brightening cream, and anti-aging cream, which are all gaining popularity now as the market notices the benefits they can do to skin.
Multi-outlets offer convenience and affordability through a wide product selection from both established and private-label brands at an affordable price.
This is followed by Europe, North America, Middle East, and Africa. The growing popularity of K-beauty contributes to this finding.
This is equivalent to an expected dip to -2.02%. However, by 2021, it’s expected to grow at least 6.71%.
Multi-outlets sold about 316 million units, amounting to about $1.57 billion. When it comes to cleansers, quality and affordability are the biggest factors in purchase intention; top-of-mind brands include Cetaphil and other private labels.
This supports the observation that more and more consumers are looking for safe, sustainable, and ethically-made skincare products.
It’s expected to grow between 3.35% and 4% in the coming years. The biggest market-drivers are rising hair problems, increasing disposable income, and growing demand for naturally-derived products.
Meanwhile, Latin America is the fastest growing market.
In 2016, it was around $3.2 billion worldwide. This supports the observation that more consumers are actively looking for healthier hair care products.
Because they offer a wide selection of hair care products, consumers are able to thoroughly check the product (ingredients, expiry date, etc). However, online channels are expected to grow as well because of the convenience they offer.
In 2019 alone, it amounted to approximately $12,861.86 million. Shampoo contributes the biggest revenue. Approximately 528 million units were sold in 2019, amounting to about $2.45 billion.
This is followed by skincare products, personal grooming products, makeup, and fragrances. Before COVID-19, women use these products for at least two weeks more than men do.
Its current compound-annual-growth-rate (CAGR) is estimated at 4.8%. The increasing demand for personal grooming contributes to this growth.
This figure has taken into consideration the COVID-19 crisis.
By 2027, it’s expected to reach at least $33.4 billion.
By 2027, growth in this segment is readjusted.
The biggest contributors to the growth are the US, Canada, Japan, China, and Europe.
Within this statistic, 45% of them prefer natural-based and healthy perfumes, supporting the observation that consumers are becoming more conscious shoppers.
In 2019, 138.7 million Americans bought fragrances in 2019. Within this fraction, 1.98 million people spent at least $500 on fragrances.
In the coming years, the multi-faceted beauty industry is expected to grow even more. However, innovation among brands is important and plays a big role in the industry. The entry of new consumers (Generation Z), the shifting consumer mindset, and the availability of more convenient shopping channels all affect the outcome of the market and its growth.
In spite of these changing and uncertain times, one thing is still for sure: The beauty industry is here to stay.