However, more sophisticated approaches are starting to emerge, such as that taken by early-stage startup Zamface, which offers a platform to help viewers find a livestreamer with similar facial features to them. Hair care products is where Amazon performed best in Google, with the second highest market share. Previous perks have included MAC Cosmetics coupons for 25% off storewide and a free gift with orders of $65+. However, ingredient transparency doesnt only mean making it clear what ingredients are included, then educating users on how effective they are it also means providing details on the ways those ingredients are sourced and moved. 2020 Fortune Business Insights . This shift is accelerating as government regulation in the EU and select US states pushes CPG companies toward adopting more sustainable alternatives. Terakeet analyzed current trends and search data with our proprietary software, Carina, to extract some key marketing insights. Going forward, the beauty industry will continue moving beyond empty buzzwords like clean and natural and instead get down to the nitty-gritty of specific ingredients and their effects. 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. 2020 2021/2020 2019 2020/2019 2018 2019/2018 2017 2018/2017 CAGR; . So, whereas content strategy is the high-level plan, content marketing is how you get it in front of your audience. But the benefits of personalization, including serving those missed in mass-market product offerings, will push brands to strike a balance between preserving privacy and innovating for new revenue streams. With many salons closed for months in 2020, there was a significant rise in demand for DIY beauty products, such as peels, masks, and waxing kits. Up to 70% of surveyed US consumers said they would pay more for sustainable packaging, per McKinsey. Show publisher information Presently, rise in awareness about beauty and consciousness are the prominent factors that drive demand for skin care products. When it comes to beauty content marketing, the skys the limit. In the highly competitive B2C beauty industry, an effective content strategy can help brands differentiate from the competition. And new in-store pickup options connect the online and offline shopping experiences. LOral has been a pioneer in social commerce through the years, including livestream shopping. Increasing awareness toward personal grooming is accelerating market growth. Another important factor in a successful omnichannel experience is the ability for store associates to connect with customers online. Propelling this growth were the 4.7 million non-prestige beauty shoppers who have begun purchasing in the prestige category. Este Lauder, being the massive global beauty company it is, helped M.A.C grow even . Some beauty brands are exploring more creative solutions, using materials like mushrooms, wood pulp, or agar. Videos give people the opportunity to see a product in action, which is particularly important for cosmetics products. Local D2C brands are popping up to capitalize on the opportunity at least 10 new China-based male skincare brands were reportedly launched in 2020. Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. These stores offer a variety of products to consumers and every individual has the liberty to validate the genuineness of the product. 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. I appreciate the timeliness and responsiveness of you and your team., (applicable to 1 report only for the same license type). Text version Dermocosmetics market Global beauty market Focus on the digitalisation of beauty +40% global growth in online cosmetics sales 22% Perhaps more than any other industry, the beauty industry is associated with influencer marketing. maccosmetics.com's audience is 24.35% male and 75.65% female. Currently, beauty juggernauts are looking to indie brands to experiment in newer markets and nascent trends. During the pandemic, lockdowns and emergency measures hampered the supply of raw materials to the market. The rising awareness toward personal grooming along with the expanding number of brands producing a wide range of cosmetic products is favoring market expansion. However, chemicals used in manufacturing of cosmetic products can harm an individuals skin or other parts of the body. Asia Pacific and North America account for more than 70% of the total market size, The cosmetics industry has an annual growth rate of 4.75% worldwide, Global beauty industry revenue is expected to top $716 billion by 2025. The starting place is offering customers a superior buying experience, including both the products and themselves and the purchasing process. The market of Europe is characterized by the occurrence of various international cosmetic brands in countries such as France, U.K., and others. Furthermore, indie brands often succeed in the areas beauty corporates dont, namely niche categories, targeted distribution, and social media prowess. MAC Cosmetics' headquarters is located in Buffalo, New York, USA 14216. For example: Below, we look at where big tech and beauty are colliding. In January 2021, Hims & Hers which launched as a holistic male wellness brand through its suite of haircare, skincare, and supplement products but has since expanded to womens wellness went public in a $1.6B SPAC deal. 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. After seeing the success of independent players such as vertically integrated incubator Seed Beauty, which is behind ColourPop, Kylie Cosmetics, and more big beauty corporates have followed suit with their own incubators and accelerators, with examples including: LOrals Seed Phytonutrients and Unilevers Skinsei are just a few examples of internally incubated brands. In March 2021, beauty conglomerate Coty partnered with LanzaTech to leverage the biotech companys sustainable ethanol in its fragrances. By combining its Beauty Board, Beauty Talk, and Ratings and Reviews, Sephora has nurtured a cohesive and immersive environment for its customers. LOrals Perso device accounts for this data to dispense custom-formulated makeup every day. Following 2020s spotlight on racial justice and equity, a newfound focus on funding diverse brands has emerged as well. Haircare startup Prose, for instance, recently launched a subscription service for supplements which it says can prevent hair loss and promote healthier scalps. Key players focus on launching new facial skin easing products developed according to the need of different skin types, supporting the segmental growth. Some examples of amazing digital customer experiences include: For example, Ultas Glam Lab lets customers see what theyll look like using different types of color cosmetics like mascara and eyeshadows, as well as with different hair color or eyelashes. Certain brands will benefit by working with mega influencers and entrepreneurs like Huda Kattan, Nyane Lebajoa, or James Charles. At the same time, consumers are increasingly realizing that not all natural ingredients are good for you and not all synthetics are bad. A. LOral-owned ModiFace also allows customers to try on makeup virtually. Sephora Accelerates 2021 cohort will also only include founders of color. Therefore, increase in awareness of probable side effects of cosmetics and skin concerns among customers is an important factor that limits growth of the market as a whole. Among its alumni are gender-neutral makeup line, Inter Parfums subsidiary bought a 25% stake in France-based fragrance company. For instance, in April 2022, RENEE Cosmetics, an Indian cosmetic brand, announced the launch of its new product range called Face Base for Indian skin types. Beyond quizzes, corporates have kept up by expanding to in-home devices that can gather more granular, specific user data to measure skin condition or deliver products more precisely. On the basis of category, the market is divided into skin and sun care products, hair care products, deodorants & fragrances and makeup & color cosmetics. More and more consumers are using augmented reality when shopping. Regular makeup use is harmful for skin as it breaks the skin's protective layer. Ulta Beauty also pledged to double the number of Black-owned brands carried by the retailer by the end of 2021, committing more than $25M to the push for greater diversity. 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. And it still remains an important and effective marketing vehicle for makeup brands and other cosmetics retailers. We are happy with the professionalism of your in-house research team as well as the quality of your research reports. That revenue number and that earnings number defines how well they do is and who in the market buys that stock, Luxury Brand Partners CEO Tevya Finger told Glossy. Given rapid expansion plans and high demand, companies should keep an eye on quality control new plants can encounter hiccups that may compromise the final product. Hence, such changing lifestyles, have led to growth of the global cosmetics market. The Definitive Guide, 10 Content Marketing Strategies for Beauty Brands + Examples, 9 Powerful Ecommerce Content Marketing Strategies for 2022, 10 Excellent Content Marketing Examples to Inspire Your Strategy, 10 Remarkable Benefits of Content Marketing. The report was very accurate and as per my requirements. But, why is the beauty industry growing? The data offered to us was exactly what we were looking for. Meanwhile, unicorn Zenoti, which raised $160M in Series D funding earlier this year, provides services management software for salons in over 50 countries. Amazon, Apple, and Google all offer voice-enabled smart speakers and have designs on deeply integrating their virtual assistants into peoples home lives. Ultimately, the beauty brands and retailers that will come out on top will be the ones that create a unified view of the consumers online and offline behavior. Similarly, they need to keep pace with effective marketing strategies such as more advanced beauty influencer marketing and branded communities. 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. (For more, read our brief on How Material Innovation Will Improve Sustainability In Beauty & Personal Care.). Virtual try-ons are a key decision-making tool to assist with buying beauty products, especially makeup. But, in recent years, cosmetic brands have become more inclusive, dramatically expanding color options. In makeup, Amazon ranked slightly better in position five. As a result, youll create the sort of lasting relationship that often ultimately leads to a purchase. Read on for a high-level look at the beauty industry, trends that matter, and cosmetics marketing strategies that will create the most success. Over the long term, SEO is better than PPC, providing both compounded returns and a much higher ROI. Estimated market of more than 200 billion euros, Growth of the worldwide cosmetics market over 10 years (in %), Breakdown of the market by geographic zone (in %), Breakdown of the market by business segment (in %), Growth of the skincare market compared with the global beauty market. Nail care is also increasingly coming out of the salon and into the home. The top 10 U.S. beauty markets were up 2% compared to 2019, while the remaining U.S. was up 10% compared to pre-pandemic levels. Moreover, online sales channel has increased consumer reach, making it key source of revenue for many companies. formId: "6249b226-16fe-449e-89bb-234c2fdc506f" New York, NY 10018. For example, California-based ManiMe uses 3D scanning and printing technology to create customized press-on nails that are shipped to the customer. When we compared informational vs transactional searches, online publishers really pulled ahead. On the basis of gender, the women segment led, in terms of the cosmetics market size in 2019, and is expected to continue to grow with robust CAGR during the cosmetics market forecast period. The only cosmetics market that recorded growth in 2020. But, what is content marketing? In December 2020, Google launched an AR-powered cosmetics try-on tool in Google Search, partnering with brands like LOral, Este Lauder, MAC Cosmetics, and more to let users try on searched-for makeup products using front-facing mobile phone cameras. ", Statista, Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022 Statista, https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states (last visited May 01, 2023), Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022 [Graph], Statista, July 12, 2022. LOral benefits from the strength and balance of its brand portfolio, which covers the entire skincare market: iconic brands with a comprehensive skincare offering, affordable brands with scientific and natural formulas. Clean beauty is another business growth area within the beauty industry to watch. In beauty retail, virtual try-on tech serves a dual purpose: combining both augmented reality and computer vision, it allows shoppers to virtually test out different looks, while simultaneously collecting behavioral data for brands.