Beauty and Personal Care Products Market Trends

Growth Drivers

• Artificial intelligence (AI) and augmented reality (AR) to boost sales of smart and advanced beauty and personal care products: Beauty tech is one of the emerging trends in the beauty and personal care industry that involves the integration of AI and AR in beauty and personal care products. Several skincare brands are implementing the use of AI algorithms to enhance their treatment service and product quality and efficiency. Skin analyzers, smart mirrors, and virtual reality tools are some of the AI-powered devices gaining popularity globally. Thus, innovations and integration of AI are anticipated to increase the sales of smart beauty and personal care products in the coming years.
  Lululab is a start-up based in Seoul, South Korea that offers advanced beauty and healthcare solutions. The company’s special lighting and correction technology aids in analyzing the health of the skin. The technology makes use of artificial intelligence to scan the face and provides information on skin health. At CES 2024 L'Oréal S.A. introduced AirLight Pro a next-gen hair drying tool. AirLight Pro is designed in partnership with Zuvi, which offers visually smoother and hydrated hair.
• Eco-conscious solutions and plant-based materials pushing sales of clean-labeled beauty and personal care solutions: Sustainability and organic trends are driving consumers' attention towards the use of natural and plant-based beauty and skin care products. Beauty and personal care product manufacturers are aligning with this clean beauty trend by adopting sustainable manufacturing practices.
  The increasing awareness of greenhouse gas emissions and their ill effects across the world is promoting the sales of personal care products manufactured using plant-based components. Personal care products including napkins, towels, diapers, toilet papers, and sanitary pads produced using cellulose fibers are gaining traction. Also, soaps, shampoos, lotions, cosmetics, and perfumes made from plant oils such as peppermint, lemon, eucalyptus, lavender, tea, soy, and coconut are anticipated to fuel the sales of plant-based personal care products during the forecasted period.

Challenges

• Lack of regulations on product formulations: Some of the beauty and personal care product companies are making use of unregulated ingredients, which is expected to hamper the sales of cosmetics. People are steadily becoming aware of clean labeling and making decisions based on what goes in the product. Thus, this can limit the adoption of certain beauty and personal care products, hampering overall market growth.
• Greenwashing and poor product quality lowering sales of beauty and personal care products: Greenwashing is also one of the factors lowering the goodwill of the company and ultimately the product. Poor product quality and packaging further lower the adoption of beauty and personal care products.