The global beauty and personal care industry is expected to be valued over $500 billion in 2020, with an expected annual growth rate between 2-4%. While people are spending more in beauty and personal care segments, the competition for market share is as fierce as ever. Beauty and personal care companies have been leading the charge in driving sales from digital and influencer marketing techniques, but as we look into the challenges and opportunities ahead in 2020, it’s all about product differentiation. In this report, we cover the 2020 beauty and personal care trends related to product development, regulatory, and marketing for beauty and personal care companies.
“All-clusive” Beauty Products
As the world focuses more on diversity and inclusion, personal care companies are leading the way for inclusivity. Product innovation includes lines that span across race and gender. Whether it is makeup for men, as Covergirl announced its first “Coverboy” in 2016, or beard grooming products, men’s personal care is expected to hit $166 billion in 2022. In a recent Vogue article, the author asks the question, “As the world’s perception of beauty becomes more diverse, how are make-up brands evolving in tandem?” This is a direct challenge to beauty and skin companies who must find a way to develop products that are diverse, inclusive, and an accurate expression of current beauty trends.
Consumers expect to identify with brands they buy and want to associate their values with the brand values. As a result, beauty companies who strive to innovate and launch new products and line expansions quickly cannot forget to ensure that consumers stay connected with the brand. Some companies can use science and technology to solve this potential disconnect between personalized inclusion and relationship with consumers at the brand level and the need for constant new product innovation.
Consider the potential benefits to skin DNA analysis – skincare has always been personalized to the individuals. Now, consumers are able to take advantage of their unique genetic markers to create customized skincare routines to create individually tailored skincare regimens. In 2019, L’Oreal introduced the My Skin Track pH by La Roche-Posay as a wearable sensor and companion app to easily measure personal skin pH levels to create customized product regimens to better care for skin. This isn’t just for the dermatologist offices; consumers can buy this product directly.