Social media has become a critical way for teenagers to find the trendiest products in line with their clean beauty needs and beyond edutainment for beauty and skincare products. DOWNLOAD THE FULL REPORT BELOW Propelling this growth were the 4.7 million non-prestige beauty shoppers who have begun purchasing in the prestige category. We cater to it all., MAC COSMETICS INNOVATION LAB QUEENS CENTER. Beauty companies are aiming to expand their product portfolio by acquiring different small-scale cosmetic brands as it helps the company with maximum customer reach and builds brand identities in the untapped markets globally. The dominant players control a large market share because they have well established distribution channels. While most analog brick-and-mortar retail is staring at the fate of a video rental store, MAC Cosmetics is taking the virtual road. Makeup Market Size, Share & Trends | Growth Analysis [2029] Currently, you are using a shared account. The coronavirus crisis has acted as a catalyst in the adoption of augmented and virtual reality to facilitate the shopping experience: 20% of retailers in the United States now want to offer virtual try-ons, compared with 8% before the crisis. Its one of the most effective means of building brand love. Grooming, looking good, and feeling good trend is rising worldwide with women at the center of the cosmetics industry. MAC Cosmetics Target Market- Market Segmentation - 440 Industries Incumbent brands including MAC Cosmetics, Tom Ford, Gucci, and Marc Jacobs have all launched gender-neutral lines across makeup, fragrance, and clothing as well. Beauty Industry: Cosmetic Market Share, Trends, and Statistics - Terakeet Companies targeting this space include early-stage startups Ilia Beauty, Saie, and Revolution Beauty. For instance, in October 2022, Earth Rhythm announced its entry into the offline retail market with the launch of 12 kiosks in India's Tier 1 and Tier 2 cities, New Delhi, Chennai, Chandigarh, Raipur, Bangalore, Mumbai, and Dehradun. Meanwhile, Johnson & Johnson has developed a host of personalized skincare systems, ranging from skin-scanning devices such as the Neutrogena Skin360 to 3D-printed face masks through its Neutrogena MaskiD technology. Cosmetics, and The Ordinary have moved up in the rankings, becoming some of the top skincare brands for teens over the past year, largely thanks to influencers on the platform. Today, MAC has opened the doors of its newest design concept. Title. But, why is the beauty industry growing? The North America market share is expected to increase at a CAGR of 6.50% in the near term. How generative AI can augment customer service agents, Big beauty incubates its own disruptors, ramps up acquisitions, Inclusive beauty becomes table stakes and new niches create huge opportunities, Synthetic beauty gains traction, riding sustainability and supply chain tailwinds, New sustainable packaging prototypes and business models take off, Waterless beauty as the next big eco trend, Beauty brands focus on value and varied pricing, Beauty further integrates with the wellness economy, Virtual try-on enables product discovery and engagement, Ingredient transparency trumps clean beauty, New approaches to omnichannel for beauty take hold, Quizzes, which address customer-specific preferences and customize products according to the results. In Asia, mens skincare and makeup has been a burgeoning trend for years now, with the US catching up only fairly recently, which some attribute to quarantine boldness.. Below we outline a few of these markets, which are becoming integral to defining the future of inclusive beauty and that should remain a high priority for brands looking to capitalize. The key players profiled in the cosmetics market report are Avon Products Inc., Kao Corporation, LOreal S.A., Oriflame Cosmetics S.A., Revlon, Inc., Shiseido Company Limited, Skin Food Co., Ltd., The Estee Lauder Companies Inc., and The Procter & Gamble Company and Unilever Plc. Additionally, players are focusing on strengthening online and offline distribution to expand its presence. They are also quick to pick up the current beauty trends that Chinese consumers are drawn to, and are fast in launching products that leverage those trends, Nanyang Technological University associate professor Elison Lim said in an interview with Insider. As a Premium user you get access to the detailed source references and background information about this statistic. At The Innovation Lab, consumers no longer have to swatch foundation shades endlessly, checking in-store and outdoor light before making a purchase. On the business front, using ingredients that are mined or farmed introduces potential supply chain volatility, given the quantity of vendors, farms, and fisheries that have to be involved in supplying ingredients, while synthetic ingredients are made in more controlled environments that can offer consistency. The deal helped increase the company's product portfolio and added a rich skincare heritage to L'Oral's Consumer Products Division, offering a wide range of high-quality items. The cosmetics market size from 2021 to 2027 is $463.5 billion. LOral-owned ModiFace also allows customers to try on makeup virtually. The highly visual nature of the beauty industry makes video marketing a critical strategy for brands. However, in 2020, MAC Cosmetics . The COVID-19 pandemic negatively impacted the cosmetics market in 2020. Find out which beauty brands are winning the Google organic market share wars (and which ones are not). Tech companies extensive reach which can include search data, smart home devices, AI capabilities, e-commerce platforms, and more offer compelling opportunities to cash in on the beauty market. The cosmetics industry has been segmented on the basis of category, gender, distribution channel, and region. Who are the leading players in the global market? The MAC Cosmetics Black Friday sale is an awesome way to get quality makeup at a discounted price point. Get insights on topics that are crucial for your business. While the technology has existed for some years, the Covid-19 pandemic has solidified virtual try-ons place in the beauty industry, as customers seek personalized recommendations they can try on safely, often while shopping online from their own homes. Furthermore, the process of growing ingredients in a lab reduces the devastating impacts of farming, fishing, extraction, or the involvement of intermediaries which can drive up the price and carbon footprint of raw materials extracted from the earth in lengthy, global supply chains, said sustainability consultant and All Earthlings founder Sarah Jay in an interview with Coveteur. The growing awareness of consumers toward personal grooming is driving the demand for makeup products. Today MAC Cosmetics is one of the top 3 most profitable global makeup brands. Use of natural ingredients such as aloe vera, tea, and black sugar in cosmetics products reduce harmful effects of products, which drives growth of the cosmetics market globally. Certain areas within beauty, such as skincare, became an area of focus instead as people looked for ways to de-stress. All Rights Reserved. MAC Cosmetics' headquarters is located in Buffalo, New York, USA 14216. In 2021, the beauty industry is taking with it many learnings and permanent shifts from the past year. Biotechnologies are increasingly impacting the production of beauty ingredients. For example, Dove recently named Lizzo a new brand ambassador. We know where we will be getting business intelligence from in the future., Thank you for sending the market report and data. For instance, Aeroscena, which backs its scents with clinical research and also focuses on healthcare applications, has seen its fragrances used throughout select MGM Resorts in their wellness-focused Stay Well suites. In addition to great content and SEO, these publishers also have strict editorial standards and publish expert advice, including reviews, hair, product, and makeup tutorials. Which factors are responsible for driving the product demand? Legacy brands must adapt to these changes or they risk losing market share to startups utilizing different business models. In the United States, beauty market share by revenue is segmented by the following beauty categories. Topicals and Musely, for example, are targeting skin conditions like eczema that would normally require a trip to see a specialist to get a prescription. What will be the market value in the future? In, Statista. "Mac Cosmetics Brand Awareness, Usage, Popularity, Loyalty, and Buzz among Beauty and Health Online Shop Users in The United States in 2022. In addition, body positivity is a strong trend in the industry. The surge of consumers focusing on self-care amid the pandemic has only accelerated the emergence of wellness as a holistic trend extending to traditional beauty areas like skincare. Import and export restrictions on goods and quarantine and lockdown measures imposed by governments are key challenges exporters are facing during this pandemic. The market of Europe is characterized by the occurrence of various international cosmetic brands in countries such as France, U.K., and others. Gender-neutral makeup lines are the next step in inclusive beauty, as younger generations erode traditional gender norms and stigmas. Big companies like Este Lauder, LOral, and P&G are really an amalgamation of lots of brands, and when they roll up all those brands, they hit a revenue number. Four of the top five skincare market share holders are online publishers. For instance, in 2020, Loreal S.A. acquired a renowned brand for natural remedies, THAYER'S. Ingredient transparency and nontoxic options will be crucial for this category to see sustained growth. Global Cosmetics Market is estimated to be valued at USD 380.2 Billion in 2021 to USD 465.0 Billion by 2026 with a CAGR value of 5.5% from 2021 to 2026. ET by Tomi Kilgore. A typical bottle of shampoo consists of 90% water, and shipping bulky, water-based products leads to substantial transportation costs, increased emissions, and more packaging. It certainly looks that way. Based on distribution channel, the market is segregated into supermarkets & hypermarkets, exclusive brand stores, online/e-commerce channels, and others. Thank you for contacting us, our sales representative will get in touch with you shortly! Some brands are able to launch new product lines in just 3 months. As consumer values and expectations shifted, big beauty corporates and startups alike have been forced to adapt. Here are just a handful of content marketing examples to consider for your strategy. Virtual try-ons are a key decision-making tool to assist with buying beauty products, especially makeup. after the death of one of the founding Franks, they bought the remaining share. A market in which L'Oral is the global beauty leader. This is a very good piece of work and will be very helpful to us going forward. Synthetic biotech company Amyris recently acquired a majority stake in sustainable cosmetics brand EcoFabulous the seventh clean beauty brand in its portfolio. TikTok especially is gaining traction as a beauty product education and exploration platform, boosting sales when products go viral. The report covered all the points and was very detailed. Beauty brands have long pursued personalization, but have experienced plenty of starts and stops between lack of technological advancements, poor data collection processes, and nascent business models, among other factors. A Forrester study found that 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience, while Accenture found that 75% of consumers are more likely to make a purchase when recommendations are personalized to them, propelling the push for brands to personalize and differentiate offerings. Skincare brand Proven, for example, says it feeds consumer data into its AI platform which contains information on more than 100,000 products, 8M+ testimonials, 4,000+ scientific publications, etc. The positive stance of the producers in the region supported by short term loans provided by the government along with other facilities, are raising the product demand in these regions. Biotech ingredients-as-a-service company. LOral confirmed its position as the global beauty leader once again this year. The ModiFace app uses AI to scrape and analyze images and descriptions of products from brands and social media posts to produce a more realistic augmented reality (AR) projection on users. Ultimately, AR is no longer a gimmick, but a proven technology integral to beauty shoppers experiences, both online and in the store. Opinions expressed by Forbes Contributors are their own. Beyond Fenty, a number of inclusion-focused brands like Mented Cosmetics, Urban Skin Rx, and Live Tinted have forged partnerships with larger retailers like Ulta Beauty, Target, and CVS to roll out their products nationally. Meanwhile, global brands have already rolled out mens cosmetics lines. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. An effective SEO strategy allows companies to connect with and serve more people at each stage of the purchase funnel. Age Distribution 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ Gender Distribution Female 75.65% Glosslab, for instance, has developed a waterless manicure that it offers to clients in its own salons on a membership basis. *Taxes/Fees, if applicable will be added during checkout. The EU, for example, has a goal of becoming carbon neutral by 2050, and the European Green Deal aims to shift to completely reusable or recyclable packaging by 2030. Even as restrictions lift, the shift to e-commerce is unlikely to reverse. How can marketing managers create WOM buzz around their products? 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. Lack of representation reaches beyond foundation shades and marketing. A. Some beauty brands are even carrying out clinical studies to test out their products: Juice Beauty and ZO Skin Health both feature real patients results from clinical laboratory studies on their websites. As people have spent more time working and socializing virtually, video filters could prove to be another expanding use case for virtual makeup. All Rights Reserved. Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. These keywords span three vital markets, including skincare, makeup, and hair care. The range also includes loose powder, which is offered in four shades. CPG incumbents are also making moves. 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. Join 840,000+ CB Insights newsletter readers. This factor also resulted in the development of low-cost counterfeit products with lower-quality ingredients that are not safe to use. As cosmetics have become an integral part of individuals lives, consumers, especially women, prefer to use cosmetics products, which are handy and easy to use while travelling or attending social meetings. Author(s) : Nitesh C, Himanshu V , Roshan D, Global Opportunity Analysis and Industry Forecast, 20212027, AVON PRODUCTS, INC, KAO CORPORATION, LORAL S.A., ORIFLAME COSMETICS S.A., REVLON, INC., SHISEIDO COMPANY, LIMITED, SKIN FOOD CO., LTD., THE ESTEE LAUDER COMPANIES INC, THE PROCTER& GAMBLE COMPANY, UNILEVER PLC. What will the next few years look like for the beauty industry? The market is projected to grow from USD 41.85 billion in 2022 to USD 61.34 billion by 2029, exhibiting a CAGR of 5.61% during the forecast period. Because a founder is of color does not mean that their business has to be focused only on people of color, Keenan Beasley, the founder and CEO of beauty incubator Supply Factory Brands, told Glossy. And while some trends will fizzle out, others will only expand their reach. For example, major retailers like Sephora, Macys, and Bluemercury have committed to the 15 Percent Pledge a promise to commit 15% of shelf space to Black-owned businesses. Nestl, for instance, acquired a majority stake in skincare startup Vital Proteins last year. By continuing to visit this site you agree to our use of cookies . For example, heres the top five ranked websites in the moisturizers sector of the beauty industry (informational searches vs product searches). Looking forward to work together on similar projects, We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. In 2020 the company invested in the social commerce software company, Replika Software, in order to increase ecommerce sales and peer-to-peer selling. Many in-store cosmetics brands have tried virtual experiences like shade-finders, and have ultimately failed perhaps due to half-heartedness. While MAC may have provided the blueprint for the brands that followed, the company hasn't been terribly affected by their competitors' success. Terakeet analyzed 3,168 high-value, non-branded beauty industry search queries, which account for 112.7 million annual Google searches in the U.S. In 2022, the global cosmetics market experienced growth of over 16 percent in comparison to the previous year. Around 11% of beauty and health online shop users in the United States say they are likely to use Mac Cosmetics again. In-house incubators offer a way for conglomerates to build relationships or even gain equity stakes in these companies paving the way for future acquisitions as it becomes clear which early-stage brands will mature and which will fizzle out. Based on our analysis, the global market exhibited a decline of 14% in 2020 as compared to 2019. Some companies are also introducing waterless or water-reduced initiatives to salons. The global makeup market size was valued at USD 40.37 billion in 2021. Neutrogena, for example, put out compostable wipes. An efficacy facts panel from a product label. Will consumers return to stores in the same numbers, or will they continue to buy online? This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cosmetics market analysis from 2019 to 2027 to identify the prevailing market opportunities. Investors have backed companies in this space such as skincare supplement startup Moon Juice, beauty-focused vitamin provider HUM Nutrition, and Nutrafol, a company offering supplements for thicker hair growth which has raised $36M from investors including Unilever. Furthermore, 17 of the top 22 performers are publishers, capturing 62.3% organic market share. A few brands are working to cater to older consumers, such as Gen Xers or baby boomers. Quizzes are pervasive in the burgeoning direct-to-consumer (D2C) personalized haircare market, which has seen companies emerge across geographies like the US (. Also, the COVID-19 crisis restricted supply chains in every industry, including fashion and cosmetics. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the cosmetics market players. And this isnt just the case for informational keywords. The region is anticipated to experience a significant growth in the coming years, owing to the rise in the young population along with their rising consumption of branded beauty products. MAC Cosmetics Black Friday Deals 2020: Lipstick, Mascara & More - WWD The market research is offered along with information related to key drivers, restraints, and cosmetics market opportunities. From waterless beauty products to virtual try-on, here are the trends and tech that will continue to transform the sector in 2021 and beyond. Japans Shiseido exemplifies the omnichannel approach. Major countries in each region are mapped according to their revenue contribution to the global market industry. As a result, youll create the sort of lasting relationship that often ultimately leads to a purchase. The rising inclination of consumers in terms of health awareness and toxicity created by the products is expected to restrict the product demand in the long run. However, that doesnt mean that the in-store experience is a thing of the past. (For more, read our brief on How Material Innovation Will Improve Sustainability In Beauty & Personal Care.). Global digital advertising spending is increasing year after year, accounting for a growing proportion of total media spending, estimated to average almost 54% worldwide in 2020. Notably, virtual try-on can also help brands personalize the beauty shopping experience, enhancing product discovery and making tailored recommendations about foundation shades, skincare products, and more. Certain powders also help to reduce the look of pores and fine lines. For instance, they understand what works best for Asian skin. Jun 30, 2021. 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. Emerging startups and recent corporate developments here include: Expect to see more major retailers stocking these options in an effort to bring sustainable products under the roof. Look for brands to continue to develop hyper-personalized offerings in order to differentiate themselves from competitors and cater to consumers more effectively. These technologies have caught the eyes of top beauty investors. Governments imposed lockdowns and shutdowns of retail stores, affecting retailers as the epidemic spread across the globe. $50 Off - MAC Cosmetics Coupons - April 2023 Quality online customer service can help shoppers feel more comfortable buying new products online. The cosmetics market effecting factor are changing lifestyle and increasing demand for natural ingredients in cosmetic products. These stores offer a variety of products to consumers and every individual has the liberty to validate the genuineness of the product. Based on application area, the market is segmented into lips, eyes, face, and nails. Despite the negative impact of the coronavirus pandemic, the global cosmetics market is expected to recover in the coming years. Alll, for example, analyzes users genes through a DNA test to provide targeted skincare products. Source: Codex Beauty. Since first establishing itself as a go-to provider of AR for beauty tech in 2017, the Taiwan-based beauty company has expanded its virtual try-on offering, leveraging 3D face AR technology to let users virtually test an array of makeup products. They can view receipts on their smartphones after leaving the store. The kiosks include 90 products across its four major categories beauty, bath & body, face, and hair. 14 Trends Changing The Face Of The Beauty Industry In 2021 Supply Chain Disruptions Due to the Pandemic Affected the Market Growth. Much of the beauty livestreaming activity in Asia has been driven by high-profile influencers known as KOLs (key opinion leaders) like Lipstick King Jiaqi Li, who reaches millions of viewers every month. Based on customer preferences, demographics, and behavior, email marketing also allows brands to deliver a more personalized experience to customers. Some options include: Building vibrant online communities is an effective way to foster brand loyalty and increase engagement among customers. 7 Proven Business Growth Strategies that Work (+ Examples), How Byrdie Toppled Billion Dollar Beauty Brands (Without Ads), Organic Growth 5 Strategies to Drive Sustainable Growth, Download Terakeets Beauty Industry Report, Deodorants, Personal Care Products, Feminine, Interactive tools/apps (like the Fenty shade finder). Big beauty corporates are also attempting to penetrate new markets, especially in South Asia and Africa. The truth is, online publishers and informational sites significantly outperform established beauty brands like LOral, Procter & Gamble, and Este Lauder Companies. Brands like Sephora and Ulta, in comparison, perform much better than the traditional beauty brands in organic search. to incorporate the statistic into your presentation at any time. More than half of Gen Zers believe that gender is nonbinary and encompasses a spectrum instead. Which region held the highest market position in 2021? . On the basis of category, the skin and sun care products segment constituted a major cosmetics market share in 2019; however, the deodorants & fragrances segment is projected to experience growth at the highest CAGR during the forecast period. In fact, Dotdash, the parent company of Byrdie, invested more than $50 million into content over a three-year period across their publishing portfolio. Its AI Skin Diagnostic tool leverages AI-powered algorithms to analyze a users skin across dimensions including wrinkles, redness, oiliness, texture, and more to make personalized skincare product recommendations. When autocomplete results are available use up and down arrows to review and enter to select. The global COVID-19 pandemic has been unprecedented and staggering, with makeup experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Surprisingly, publishers and informational sites significantly outperform beauty brands and beauty retailers when it comes to Google organic search. Atolla also uses AI capabilities to customize facial serums for consumers by using data collected through quizzes and tests (measuring oil, moisture, and pH levels) that are then processed by the companys algorithm. To find out more about student events and education email artistrelations@maccosmetics.com. Virtual try-ons are not new. Social media marketing is essential for beauty companies, but choosing the best platform depends on the brands target audience. Companies that sell primarily to Millennials and Gen Z will want to focus on Instagram, TikTok, Snapchat, YouTube, and Pinterest (to a degree). A. As the space becomes more crowded, watch for companies to differentiate themselves with pairings of inner and outer products, such as ingestibles and topical creams, marketed around beauty benefits. The formulations of cosmetic products consist of numerous chemical constituents, including synthetic chemicals, coloring agents, sulfates, and others. 2020 was a redefining year for every industry including beauty. Statista. 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. Since Fenty Beautys launch in 2017, inclusive beauty has become an industry buzzword, encompassing new demographic markets that are becoming increasingly important for the beauty industry to target. Others, including Glamsquad, send stylists directly to peoples homes or offices. MAC Cosmetics's Competitors, Revenue, Number of Employees - Owler As more people research and purchase beauty products online, its critically important for brands in the cosmetics industry to seize the growing opportunity of organic search. Johnson & Johnson, maker of brands like Neutrogena and Aveeno, is investing in new engineered preservatives that could be used in items like haircare or body care products. The Asia Pacific region is estimated to rise at a CAGR of 5.0% over the forecast years. How MAC Cosmetics Went From A Pink Crayon To Worldwide Brand Beauty-focused SPACs have emerged of late, including Powered Brands, which is looking to acquire between $800M to $1.5B of assets to compete with legacy beauty brands, and Waldencast Acquisition Corp., which is expected to ink deals in the $1.5B to $3B range.