We see a shift in health and personal care trends post-pandemic – If COVID-19 has taught us anything, it is the importance of taking care of ourselves.
As one of the biggest retail markets in the world, the Beauty & Personal Care industry is expected to reach an astounding USD 571 billion in 2023, with a CAGR of 3.8% up to 2027[1]. With increasing dependence on digital shopping platforms, an expected 27.5% of the total industry revenue will be generated online.
Despite a volatile economy and high inflation rates, retail market experts explain the reason behind such solid growth in the beauty industry is the need for consumers to feel and look good, especially during hard times and in the face of potential recessions[2]. Instead of buying high-value luxury goods, consumers look towards smaller luxury items such as makeup and beauty products to achieve this goal, something economic experts call the ‘Lipstick Effect’[3].
#1 Beauty Rx
In response to consumers’ increasing hunger for more potent beauty products, brands are answering demands through the medicalization of products. Beauty Rx is all about integrating synthetic natural ingredients backed by medical claims. According to industry research, over 53% of US beauty and personal care shoppers research beauty ingredients to understand product effectiveness before purchasing[4].
The Beauty Rx trend also gives rise to a biotech movement in the beauty and personal care industry, where businesses invest huge amounts of money in discovering effective beauty ingredients that already exist in natural environments within organisms[5]. By cultivating wild plants such as algae and trees, beauty brands commonly extract specific beautifying properties from nature to create effective beauty products for shoppers.
#2 Personalization in Beauty
Consumers are becoming increasingly focused on the ‘Personal’ aspect of personal care by paying attention to specifically catered experiences or products. According to research conducted by McKinsey, 71% of consumers are currently expecting personalization whilst shopping[6]. 58% of shoppers are more inclined to purchase products just by beauty brands offering online quizzes to recommend products for them[7].
Especially with diversity and inclusion being more prominent within the beauty industry, many brands offer more and more custom products, such as custom foundation shades and haircare products, to cater to consumers of different races, ages, skin types and body types. The idea of personalization of beauty products also extends to personalized packaging, where brands seek to enhance brand value and consumer experience with a personal touch.
#3 Clean Beauty
The idea of ‘Clean Beauty’ is a relatively unregulated term that is one of the fastest growing categories within the personal care sector – especially for Gen Z consumers – consistent with the rising movement towards safety, sustainability and eco-friendliness. According to market statistics, the global clean beauty market is expected to grow with over 40% CAGR up to 2028[8].
Though different brands still have inconsistent definitions of ‘Clean Beauty’, this term not only needs to be made with the safest possible ingredients, but it must also be non-toxic for consumer use and have the lowest environmental impact[9]. Products within the clean beauty sector should have their ingredients clearly labelled and produced cruelty-free.
With a clear direction of the trends within the Beauty & Personal Care industry, focused predominantly on effective, clean and personal products, businesses should seek new products that cater to changing consumer trends and demands from trustworthy and credible suppliers.
As an established B2B sourcing platform, hktdc.com Sourcing features suppliers that are experts within the field. Buyers can search for over 130,000 verified vendors that produce quality products ranging from high-tech personal care products to clean beauty products. Powered by AI technology, the platform can also seamlessly match suppliers with buyers to bridge demand and supply gaps. Learn more by clicking on the banner below:
It’s also a good idea to promote your company and products with us:
- https://www.statista.com/outlook/cmo/beauty-personal-care/worldwide
- https://www.marketplace.org/2023/03/15/no-matter-the-economy-beauty-sells/
- https://www.investopedia.com/terms/l/lipstick-effect.asp
- https://www.mintel.com/beauty-and-personal-care-market-news/beauty-trends/
- https://www.voguescandinavia.com/articles/skincare-biotechnology
- https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying
- https://www.nosto.com/wp-content/uploads/beauty-skincare-consumer-report-2021.pdf
- https://www.researchandmarkets.com/reports/5711375/global-clean-beauty-market-analysis-by-product
- https://www.fastcompany.com/90823556/clean-beauty-trends-2023
