Overall optimism in beauty and personal care in 2024 is driven by technological developments, which span a wide range, from traditional and generative artificial intelligence, to blockchain, to new formulation and ingredient launches. The beauty and personal care industry is still grappling with inflation, although rates are expected to moderate in 2024. As a result, greater channel competition is projected, with gains most pronounced for discounters, online marketplaces and e-commerce.
This report comes in PPT.
Beauty and personal care companies are already incorporating artificial intelligence, ranging from daily consumer-facing activities, such as enhanced website search and handling customer service requests, to B2B activities. Greater consumer reliance on diagnostics presents opportunities in generative AI, while other technologies, like 3D printing and biometrics, widen options to tailor solutions and personalise offerings.
With consumers being increasingly educated about skin health, the search for additional benefits beyond basic functionality is growing. Consumers’ quest to control health outcomes supports ingredient-led innovations in beauty, where players should continue centring hero-ingredients to meet the increasing need for solutions-based benefits.
Global inflation is expected to moderate in 2024, but the beauty and personal care industry is still being “moderately” or “extensively impacted” by inflation, according to industry professionals, particularly in Latin America and Western Europe. Beauty brands’ top three actions in response to inflation have been to increase prices of some products/services, accept lower profit margins, or increase prices of all products/services.
With inflationary pressure reducing spending power among consumers, about two thirds of beauty and personal care professionals expect the discounter channel to gain share. This rise will also be accompanied by expected greater momentum from retail e-commerce and online marketplaces, and increased digital engagement from consumers.
This is the aggregation of baby and child-specific products, bath & shower, deodorants, hair care, colour cosmetics, men's grooming, oral hygiene, fragrances, skin care, depilatories and sun care. Black market sales and travel retail are excluded.
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