Like many sectors, the global cosmetics and personal care industry has taken a knock in the past two years thanks to the COVID-19 pandemic, but industry professionals remain optimistic about the future.
According to data collected by Euromonitor, the markets in Western Europe and North America both saw serious declines during 2020. As consumers avoided social events and put on masks, they stopped buying as many colour cosmetics and fragrances, however they continued to buy skincare and bath & shower products, specifically those intended to support hygiene and a sense of self-care.
The beauty and personal care market is expected to rebound as industry players adapt to a "new normal. Five trends that are expected to reshape the beauty market.
1. A Different Perception of Premium
How beauty brands market products to consumers is shifting. Health and ethical claims are the new status symbols, eclipsing an outdated emphasis on vanity and luxury. Categories aligned with wellness trends are expected to profit in the future, as more and more consumers seek to improve their overall wellbeing in all areas of their lives.
Large big-name cosmetics companies also face stiffening competition from smaller niche players. In addition, sustainable products and features are expected to be even more important in the future.
2. A Shift in Focus to Skin and Personal Care
The focus on health and wellness has shifted product sales. Body care has benefited from the healthy living trend, while colour cosmetics have increasingly fallen by the wayside. In 2020, skincare beat expectations and is expected to remain a top category in the global beauty industry over the next few years.
3. The Rise of “Geographic Hotspots”
A move toward country-branded beauty has also gained steam, and the “made in” stamp on cosmetics products allows brands to capitalise on their own cultural associations. Globalization and renewed interest in travel and culture helps drive this influential beauty trend.
An example of this is Korean beauty, also known as “K-beauty,” which initially led the way but other unique skincare regimes have also captured consumer's attention in recent years including J-beauty (Japanese beauty, known for a more minimalist approach), C-beauty (Chinese beauty, featuring ingredients and rituals from traditional Chinese medicine), and A-beauty (Australian beauty, with a "less is more" appeal and organic and natural formulations).
4. New Emphasis on the Male Segment
Women account for 90% of beauty and personal care value sales, according to Euromonitor. However, growth in men’s grooming is expected to speed up in the coming years, and cosmetics companies are working to capture this segment by releasing new skincare lines that cater to this demographic.
One marketing approach is to align brands with values related to mental wellbeing, prevention, and self-care—values that have only increased in importance during the global pandemic.
5. Natural vs Synthetic Ingredients
Consumers are hooked on buzzwords and labels that compare natural and synthetic ingredients. Although natural ingredients are often positioned as the healthier, better choice, formulation experts understand that both categories of ingredients are essential for making effective and safe cosmetics and personal care products.
About 24-30% of the personal care and cosmetics ingredients market is made up of natural ingredients, while 70-75% is synthetic, according to a report by Frost & Sullivan. The challenge now is to address the confusion consumers have about different types of ingredients and communicate the unique role both synthetic and natural ingredients play for the efficacy and safety of products.
Chemgrit Cosmetics stocks and supplies several active ingredients and commodities which are used in the manufacture of personal and skincare products. For more information contact johrinda@chemgritsa.co.za or visit www.chemgritcosmetics.co.za.