The previous year was tough for the beauty industry, just like any other due to the global pandemic. Data shows a significant 2020 decline in buying certain products, like fragrances and makeup. On the other hand, the sale of self-care products, like luxurious face masks and serums, was on the rise.
Things are improving halfway through 2021, but a lot of last year's strategies and practices may continue permanently. With that in mind, we prepared an overview of trends that are currently shaping the face of the beauty industry.
1.Attention to inclusivity
When it comes to inclusivity, more and more today’s brands understand that they need to cover the underserved demographics. For example, men's skincare has expanded and now they have a broad range of products, like face masks, makeup, and eye creams. Gender-neutral beauty products are not targeting any gender but focus on unisex offers that are intended for specific skin conditions.
People of color are the most affected by a lack of inclusivity, although that is changing rapidly. It surpasses creating products and expands to providing training, support, and resources to be more than a consumer. Of course, inclusivity is also about catering to customers of all ages, not only those who are 18–35 years old. There is more specially designed skincare for babies, children, teens, and perimenopausal women.
2.Continuing investment in incubators
In-house brands are slowly being replaced by independent companies developed through incubator programs. Beauty corporations turn to these new brands for partnership or acquisition because of their dedication to moving social, cultural, and gender boundaries. For example, L'Oreal offers the Women in Digital program, while Target supports gender-neutral makeup brand Fluide.
Last year, a lot of investment was focused on supporting diverse brands, like Black-owned beauty businesses. Some even only intend to accelerate companies that have founders of color, like Sephora Accelerate.
3.Enhanced personalization
Based on the 2019 Accenture’s Consumer Pulse Survey, 75% of consumers will decide to buy personalized products. Customized formulations for each consumer have been in the beauty industry for a while but reserved for the wealthier population.
Now, thanks to market research, brands know that most consumers are willing to pay for products and services tailored to their individual needs. Some companies use quizzes, while others go as far as to perform DNA testing and create products based on their customers' genes.
4.Growing demand for natural and transparent products
Customers want to know the ingredients in the products they use. Moreover, they are interested in brands that are open about their ways of doing business, as well as what they use in the manufacturing process. It's not enough to say that a product is natural, but the companies need to be more specific with their claims.
According to the 2019 Future of Beauty Report, brands that claim to be both natural and paraben-free have more sales than those claiming only one or the other. The same Report defines a new consumer as someone who observes natural beauty products through diet trends. For example, a 31% increase in products with avocado oil.
5.Switch to synthetic beauty
Since consumers are well-informed and environmentally savvy, they don't believe that all synthetic beauty is bad. Biotechnologies provide the means to make products without endangering animals, farms, and nature. And that's not all. This type of approach may lower the prices, reduce carbon footprint, and stop the exploitation of animal species.
Thanks to bioengineering, we have an alternative for palm oil, vegan collagen, and plant-derived squalane. All these ingredients when taken directly from nature endanger or take animal lives, lead to labor abuse, and overall environmental damage. The Ordinary is an example of quality and popular skincare products that is fully vegan and eco-friendly, as well as with satisfying results.
6.Increased interest in the subscription box service
Interest in the subscription boxes may grow drastically by 2022, reaching a 72% increase of value globally. This is not surprising, since the majority of consumers belong to the working population that is more interested in convenience due to busy schedules.
But that is not the only reason subscription boxes are growing in popularity. Receiving curated boxes with personalized items brings the element of excitement and wonder what you will get. It also makes an individual feel like a star since many influencers on social media, like Instagram and TikTok post videos of receiving boxes full of goodies.
7.Working with community
Today’s consumers attend make-up and beauty courses, look for information about brands, have environmental awareness, and value their money. If a company wants to succeed in the beauty industry, it has to work with the community. This means talking to fans, general consumers, and social media followers and valuing their opinions about all aspects of its business, from products to marketing.
Collecting information about spending habits, from questionnaires, and digital tools can show a brand what people want to buy. Hence, the appearance of online skin advisors — tools that allow companies to collect millions of data inputs and use them to fit their customer's desires.
8.Rise of the interactive experience
As mentioned before, technology plays a big part in shaping the face of the beauty industry. Augmented reality (AR) companies offered virtual try-on experiences while shopping online, like Perfect Corp’s AR developed for Alibaba. From then on, the use of AI, VR, and of course AR has been in demand, especially from corporations, such as MAC and L’Oreal.
From skin analysis tools to virtual shopping assistance, these technologies not only make shopping accessible to all but also change the whole experience. It may as well be an evolution of discovering and connecting with brands and their products that is yet to fulfill their true potential.
The verdict
When it comes to trends in the beauty industry, we may have been in the most exciting era for consumers. With new technologies constantly emerging and consumers getting more involved, quality beauty products may become available to all with the intent to buy. Although the price will still range from low to extremely high, at least this will allow low-income individuals to have access to good and satisfactory products at affordable prices.
