World Market for Beauty and Personal Care

Delivery

This report comes in PPT.

Examining five trends shaping beauty and personal care industry

As beauty and health products become more expensive due to high rates of inflation globally, consumers are forced to make more selective decisions when it comes to the products they buy.

The result has been a polarisation of spending across the product categories. Private label, price-accessible brands and “dupes” are emerging as a competitive alternative to balance consumer needs of efficacy and affordability. While inflation appears to have peaked globally last year, unit prices are likely to either remain steady or increase further. The biggest challenge will be to adopt a multi-faceted approach to ensure consumer loyalty, while beauty consumers increasingly make trade-offs to find the best intersection of value, efficacy and indulgence.

Momentum for ingredient-led beauty continues as consumers search for efficacy, international beauty concepts and sustainable sourcing.

While the “clean beauty” movement still involves avoiding certain ingredients (eg sulfates, parabens, etc) or embracing naturally-derived ingredients, this trend is a new take on “clean”. Instead, it highlights the benefits of specific ingredients (with many sourced from international beauty concepts such as ayurveda) and demonstrates how bioengineered ingredients can be just as effective.

With the perception of health and beauty becoming blurred, hybrid offerings of beauty brands and adjacent wellness categories are increasing.

As consumers' changing perception of beauty towards "a part of holistic wellness“, brands need to make a strong connection between the efficacy of their products and holistic health, which also can be proven scientifically, to gain consumers' trust. Only brands that have earned trust in the minds of consumers will be able to expand more easily into other categories.

Women’s health expands into a continuum of wellness needs, which companies are increasingly entering to position themselves as women’s lifelong wellness partners

Over the last few years, there has been a proliferation of multiple women-centred and women-founded health start-ups and substantial venture capital investment in this space. This has led to the development of products and services that help women achieve optimal care across a continuum of wellness needs from menstruation to skin, sexual health, incontinence as well as mental and gut health. The female wellness spectrum is under-penetrated and will be a key focal area in not only developed but also emerging markets.

Emotional values such as internal health benefit and social value identities have become essential factors in making a purchase decision.

Firstly, active ingredients and fragrances that are able to alleviate internal concerns, such as sleep issues, stress and anxiety. Neuroscience will be used as a biometric signal to evaluate emotional functionality, which opens a new opportunity space for fragranced products. Secondly, for social values, in the long term, it will become a must for brand to provide value that allows consumers to express their identities through purchasing.