The cosmetics industry faces a great challenge: to adapt to the demands of an increasingly conscious and demanding consumer with regard to the environment and their own health. What trends will mark the future of this sector? In this article we analyze the reality and prospects of the cosmetics industry, based on data and the opinions of experts and benchmarks.
The cosmetics industry is an ever-growing sector that generates billions of dollars annually and has a major influence on both society and the environment.
Beauty products not only impact people’s health and well-being, but also biodiversity, climate and natural resources.
As a result, the cosmetics industry faces the challenge of adapting to the demands of increasingly aware and discerning consumers, who are looking for more natural, sustainable, personalized and multifunctional products.
The reality of the cosmetics industry
According to a reportthe global cosmetics market size was valued at USD 262.21 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030.
One of the key factors driving the market expansion during the forecast period is the widespread increase in the adoption of skin care and personal care products coupled with the rise in the ageing global population.
Growing fashion trends and considerable product innovation in hair dyes and other skin care formulations and packaging contribute to the market expansion.
However, the cosmetics industry also faces a number of challenges, such as increasingly stringent regulation, fierce competition, market saturation and social and environmental pressure.
Consumers demand products that are safer, more effective, innovative and respectful of the planet and people. . They are also looking for greater transparency and information about the ingredients, origin, production process and impact of the products they buy.
Future trends in the cosmetics industry
In order to respond to these demands and maintain its competitiveness, the cosmetics industry must focus on innovation and differentiation, which are clearly reflected in the trends that will mark the future of the sector, which are as follows.
Sustainability
Sustainable development has become a global priority, in line with the UN 2030 Agenda.
Therefore, the cosmetics industry is not standing on the sidelines and is looking for new ways to market products by focusing on the creation and use of more environmentally friendly ingredients.
Actions such as the use of eco-design packaging,the use of renewable energies in production, the elimination of microplastics or nanoparticles in formulations and the promotion of responsible consumption are some of the initiatives being carried out.
Customisation
Each person has specific characteristics and needs in terms of skin, hair and body. This is why the cosmetics industry is increasingly offering products adapted to the genetic profile, skin type or lifestyle of each consumer.
Astudy by The Future Laboratory reveals thatpersonalisation of beauty products will be at the heart of the future of cosmetics and perfumery products.
The analysis notes that 42% of millennials say they are interested in collaborating with cosmetics companies to create products, so “listening to customers is key” to product range research and development.
In addition, 63% of this generation would be willing to share their data from the use of products in exchange for personalized offers.
For its part,Nielsen states how customer personalisation is changing the beauty industry. Some important trends are mentioned, such as clean beauty, multicultural, inclusive for all ages and gender neutral.
Natural ingredients
Natural or plant-based ingredients are increasingly valued by consumers, as they are perceived as safer and more beneficial for both their health and the environment.
According todata ecently published by Future Market Insights (FMI), the natural cosmetics market is estimated to reach US$ 48.4 billion in 2023 and is projected to reach US$ 79.6 billion by 2033. The market is expected to grow at a CAGR of 5.1% from 2023 to 2033.
The growth of natural cosmetics can be attributed to several factors, including growing consumer awareness of the benefits of using natural ingredients, increased demand for organic and plant-based products, and the increasing availability of natural cosmetics in mainstream retail channels.
The natural cosmetics market is also being driven by the growing clean beauty trend, which emphasizes the use of products that are free of harmful chemicals and environmentally sustainable.
Innovation
The cosmetics industry is constantly searching for new ingredients, formulations, textures or applications that surprise the consumer and offer a unique experience.
Innovation is based on scientific research to create more efficient and innovative products. According to Stanpa, cosmetic companies invest an average of €307 million per year (3.4% of their annual turnover) in R&D.
In conclusion, these are the main trends shaping the current cosmetics sector. At Starbrands we are very aware of their evolution and we base the creation of our products on the current trends.
If you are a leading player in this ecosystem, we encourage you to take a look at our partner program and see how we can help you grow by following these trends. Go ahead!
