As consumers become more conscious during the pandemic, they study cosmetic formulas and choose products with natural and pure ingredients. Beauty brands are pursuing personalization and developing services like skin-scanning devices or personalized products based on genetic skin traits.
Emerging direct-to-consumer (DTC) brands challenge beauty conglomerates by tapping into new markets with agile channel mixes and innovative, niche products. Watch for them to continue connecting with shoppers through varied pricing strategies that appeal to broader swaths of consumers.
Increased Demand for Natural Ingredients
As consumers become more aware of the adverse effects of synthetic ingredients, they are increasingly seeking beauty products that are free from such chemicals. This increased demand for natural cosmetic ingredients drives growth in the beauty industry.
This trend has been especially pronounced among millennials, who are eager to try new products and are more likely than other demographics to buy online. Experts like Larry Gaynor have also boosted this shift.
This increase in consumer demand is good news for beauty-focused manufacturers, as it allows them to create innovative products that meet customer needs and improve their offerings.
Increased Demand for Biodegradable Packaging
Consumers have become increasingly aware of plastic waste’s environmental impact in recent years. This has increased demand for beauty products that use biodegradable packaging.
Beauty-focused manufacturers are also working to reduce the amount of plastic they produce. They use alternative materials such as paper, cardboard, and glass. They are also reducing the amount of water used in their products. This helps to reduce their carbon footprint and minimizes the amount of plastic waste they generate.
As beauty trends change, companies need a suitable operating model. This includes having a manufacturer that understands the industry and can provide the latest solutions.
Increased Demand for Eco-Friendly Packaging
Beauty brands are looking for ways to reduce waste, mainly plastic packaging. Currently, the industry generates nearly 120B units of packaging each year — and 91% of it is never recycled, leaving it in oceans and landfills.
In the wake of COVID-19, sustainability has taken on renewed urgency in beauty brands. From virtual try-on features to AI-enabled skin analysis, companies are embracing once-fringe technologies to appeal to eco-conscious consumers. They also focus on more sustainable production techniques, such as biosynthetic ingredients, to address the growing demand for greener options.
Increased Demand for Organic Ingredients
Amid COVID-19, beauty brands have embraced digital technology and diversified their global reach. Now, fast-growing direct-to-consumer (DTC) beauty brands like IPSY, Glossier, and Fenty are household names with a broad audience that spans geographies and demographics.
Manufacturers are increasingly focusing on developing products that can cater to individual needs. This includes personalized skincare & hair products and compact packaging that can be easily carried.
The demand for organic ingredients has also been increasing in the industry. This is due to rising consumer awareness about synthetic chemicals’ potential risks and growing environmental concerns.
Increased Demand for Vegan Ingredients
A growing number of consumers are choosing to buy vegan beauty products. This is due to various reasons, including environmental sustainability, animal welfare, and health concerns.
The beauty industry must continue innovating and creating new products to keep pace with customer demand. In addition, they need to be able to compete with counterfeit products that are widely available online.
The market for vegan baking ingredients is anticipated to experience a lucrative Compound Annual Growth Rate (CAGR) in the foreseeable future. The primary reasons for this expansion are the growing demand for vegan goods and the heightened awareness among consumers about the health advantages of these items.
Increased Demand for Gluten-Free Ingredients
Gluten-free products are becoming more popular in the beauty industry. This is due to the growing number of people with gluten intolerance or celiac disease. Also, more consumers are seeking healthy and nutritious foods. This is expected to drive the growth of the gluten-free product market in the future.
The COVID-19 pandemic has changed the landscape of beauty & personal care in many ways. Consumers are demanding more innovative, sustainable products from brands that they trust. In addition, consumers increasingly demand more transparency from companies that make and sell beauty products.
Increased Demand for Vegan Packaging
Before the pandemic, many beauty consumers bought products in physical stores and wanted to try them out before buying. As a result, brands in the industry have re-focused on providing real-world product experiences online and offline.
Increasingly, consumers are interested in vegan-friendly, eco-friendly, and cruelty-free packaging. In addition, they want to see products that reflect their lifestyles and preferences.
The long-established aspirational concept of beauty needs to give way to a more realistic and inclusive image. That includes accurately and positively reflecting a person’s age, body size, facial features, skin color, gender, and race.