The Business of
Beauty in 2023
The captivating world of beauty products, and its
impact on today, tomorrow, and beyond.
The captivating world of beauty products, and its
impact on today, tomorrow, and beyond.
The realm of the beauty business encloses goods and services for body care and cosmetics. The importance of self-care and wellness among consumers around the world has increased at a remarkable scale in recent years. This has led to a global rise in the production and sale of the products in beauty industry and anticipates the trend to continue even in the future. The domain of personal-care products primarily includes shaving razors, wax, trimmers, deodorants or fragrances, and hair-care products, while cosmetics covers the beauty enhancer products for the lips, face, and skin, such as foundation, face powder, bronzer, highlighter, eye shadow, primer, face pack, color correctors, concealers, lipstick, and the list goes on! A lot of people, irrespective of their gender or age regularly use various cosmetic products. This industry thus showcases an increasing trajectory of the combination of inclusion and transparency. As per the expert reports, the global market for cosmetics expanded by more than 15% in 2022 and [1] expects to show exemplary growth in the coming decade.
Revolution in the cosmetic industry has brought about a plethora of make-up techniques along with the introduction of make-up products by a large number of variety of brands. Earlier where only seven to eight popular brands were available for a single cosmetic product, today there are almost thousands of brands as well as their manufacturing units are available for a single product. Even if all permutations & combinations are applied, it would still be very difficult to estimate the exact number of cosmetic products from the variety of brands that have flooded the market. In the United States alone, there are over 4200 manufacturers of beauty and cosmetic products. The beauty business has restructured itself around a wide range of products, channels, and markets. More than ever, geographic diversification has also become crucial in the present times. For instance, it wasn't until recently that businesses could concentrate their efforts on the two leading nations in the sector, China and the US. With China expected to reach over USD 90 billion by 2027 and North America expected to reach about ~USD 100 billion, both markets will continue to be powerful forces for the sector. However, a number of reasons mean that growth for certain brands will be more difficult to achieve in both sectors. One bright spot is that other nations and areas, like the Middle East and India, are prepared to take centre stage. Brands can also find possibilities by focusing on consumers with the most expensive goods and services: The market for luxury beauty might increase to over $38 billion.
The paradigm shift that technology has brought in the usage of social media is yet another crucial factor in the rise and expansion of the beauty market. Uncountable social media platforms are available at the tips of every single individual today. People have become fascinated by such a vivid variety and the urge to be in every single one of them with a unique style statement has led to an entirely new world of exhibition of one’s own style statements. Appearance though has always been one of the most vital elements of a person’s personality but today has become the most focussed and discussed one. Looking good, whether naturally or by the application of products has become the latest trend and thus taken the beauty industry by storm. The beauty market currently contributes more than ~USD 100 billion to the global economy. The beauty market has been predominantly driven over the past few years by sales of hair oils, particularly Moroccan oil, which is seeing substantial global demand. Due to the rising use of heat-damaging style appliances, more women are likely to buy hair care products. Therefore, people are utilizing hair care products designed to stop further hair damage and stop hair loss brought on by heat from styling appliances.
Apart from this, the advertising of cosmetic products by celebrities has been one of the prominent reasons why the beauty industry is witnessing such remarkable growth in such a short period of time. Almost every famous celebrity, especially women celebrities, owns a specific brand on their name that manufacture and supply a wide range of skincare, hair-care products. The sale of cosmetic products from several different brands generated almost USD 263 billion in 2022. With the competition among their fans to make their favorite celebrity a hit, people have increased their spending habits. It makes them more confident and facilitates them in identifying themselves with their loved personality. Also, despite the convenience of digital shopping, many still go to a store to try the product on before making a purchase. Real-world testing of the products is still seen as more reliable. Additionally, you might experience the product's texture and smell. Customers, for instance, test creams, moisturisers, and lotions before purchasing them to ensure there would be no redness or discomfort following use. Women typically test out lip colors before purchasing them to determine if the shade complements their skin tone. In shopping centres and other retail establishments, we frequently see counters for various beauty companies. This is a result of the brands' understanding that consumers ought to have the opportunity to try out products. Customers' confidence grows as a result, and they spread the word to their friends and family. This implies that more individuals will probably visit physical stores.
Beauty influencers, from micro-influencers to well-known figures, have a significant impact on the industry. Since they are more accessible to consumers than other brands, a positive or negative review can have a significant impact. They provide more than just reviews to the market. Additionally, they work with businesses to create exclusive ranges. In fact, when working with the proper influencers, things frequently sell out in a matter of minutes. They are directly to blame for brands quickly running out of stock. Influencers who want to go even further at times start their own cosmetic brands. These brands are a significant threat to the major beauty brands, as seen by their phenomenal sales. A survey recently concluded that more than 63% of shoppers chose a cosmetic item after being suggested by an influencer via social media.
Sustainable products can only be fruitful for the industry if they’re readily accessible not just to the consumers in the higher budget bracket, but in fact to the masses at large scale. Many companies are succeeding in developing affordable sustainable products, which has persuaded some customers to return to the beauty section, and it worked. Compared to 2020, the ‘clean beauty’ segment saw a growth of more than ~9% in 2021. It is anticipated that the beauty industry will continue to display the resilience it has developed in recent years, proving time and time again that it can sustain, and even profitably grow, during economic volatility, while other consumer sectors struggle. Everyone now wants to be a part of this market, from top bankers to A-list celebrities, and for good reason. It is thus forecasted that the industry will surpass a range of approximately ~ USD 600 billion by the end of this decade.
