Welcome to this overview of the Beauty and Personal Care industry, brought to you by Antropomedia Express. Leveraging the latest market data and insights into digital anthropology, this newsletter delves deep into consumer behaviors, market trends, innovative technologies, and strategic recommendations to navigate the evolving beauty landscape.
Market Overview
The Beauty and Personal Care market is a dynamic and expansive industry with a projected revenue growth of 2.8% CAGR from 2018 to 2028. In 2023 alone, the market generated significant revenue, highlighting its major impact on global economies.
Statistical Insights
- Global Market Value: The global beauty and personal care market was valued at approximately $500 billion in 2023.
- E-commerce Growth: Online sales of beauty products have increased by 15% year-over-year, indicating a shift towards digital purchasing.
- Consumer Spending: Average annual spending on beauty products per capita in the United States exceeded $200 in 2023.
- Sustainability Demand: 65% of consumers globally prefer to buy products from brands that advocate sustainability.
- Digital Adoption: Over 80% of beauty consumers in Asia now use at least one online platform for product discovery and purchases
Trends in Beauty and Personal Care
One of the most exciting trends is the use of generative AI in beauty applications, transforming how consumers interact with beauty brands and products. This trend allows for unprecedented levels of personalization and experimentation in beauty.
- AI-Driven Customization: Technologies that use AI to customize skincare and makeup products to individual user's skin type and preferences are gaining traction.
- Sustainable Packaging: Biodegradable and reusable packaging solutions are being widely adopted to address environmental concerns.
- Virtual Try-On Solutions: Augmented reality apps that allow consumers to try products virtually before purchasing are becoming increasingly popular.
- Smart Skincare Devices: Devices that analyze skin conditions in real-time and suggest personalized skincare routines.
- Beauty Supplements: Growth in the nutricosmetics sector, offering supplements for skin health and anti-aging.
Innovations in Beauty and Personal Care
AI and AR Beauty Platforms
Revieve, an AI and AR beauty platform based in the US, has released Match My Look to help people find the exact makeup items they used to make certain looks. When a user uploads a picture, the tool uses Revieve's Beauty ML and Google Cloud's Vertex AI to figure out what goods are in the picture and where to buy them. Machine learning algorithms are used to look at data from Revieve's product catalog and customers who use its AR try-on services. It's kind of like Google's reverse picture search. It began in February 2024.
Portable Design Devices
Imprintu is a portable device made by LG Household & Health Care (LG H&H) in South Korea. It lets users choose a pattern through a mobile app and then stamp it on their skin or clothing. The brand showed off the device at CES in January 2024, along with designs made by LG's EXAONE Atelier, an AI that has been trained on 350 million pictures, words, and videos. LG H&H said at the event that it was going to test a service that will let Imprintu users use AI to make their own drawings. As of December 2023, LG opened its first Imprintu shop outside of Korea in Bangkok. The service went live in the second quarter of 2023.
AI-Powered Fantasy Portraits
In November 2023, Snapchat teamed up with NYX Professional Makeup to release Beauty Bestie, an augmented reality filter that lets users build their own makeup looks after answering short questions about their likes and dislikes. After applying the look to their face in AR, the user can click through to NYX's website to buy the items they need to make the filter happen in real life. You can also read tips from makeup artists (also in AR), see what NYX makeup artists think are the latest makeup trends, and save your best looks. The lens was made by Arcadia, which is Snapchat's own creative company.
STEM Fempowerment
The beauty company OLAY, which is owned by P&G, teamed up with the online school Coursera in March 2024 to offer the Introduction to Cosmetic Science and Ingredients specialization. The goal was to get more women, especially women of color, interested in working in the field of cosmetic science. As of now, only a little more than a quarter of the US workforce are women working in STEM fields. This project shows OLAY's goal to double the number of women working in STEM fields and triple the number of women of color working in STEM fields by 2030. To help reach this goal, OLAY and Coursera are giving away USD 2 million in scholarships over three years. The idea is for 5,000 people with a Coursera Plus subscription to receive these awards. The free course, taught by OLAY's own scientists, will cover the basics of skin care, how ingredients affect skin, and the safest and most effective ways to make cosmetics.
Digital Product Passports
Ulé, a French beauty brand started by Shiseido, released a digital product passport for its C-Bright serum in February 2024. This was a big step toward sustainability and product tracking. It gives a clear picture of the product's lifespan, ingredients, and production, which fits with Ulé's eco-friendly philosophy, especially its support for vertical farming. The passport, which was made in partnership with web3 provider Arianee, uses blockchain technology to make sure that each one is unique and can't be transferred. This makes the product more real and builds customer trust. This is a step toward EU rules that will require digital IDs by 2026 to stop false claims about being green. The price of Ule's C-Bright serum is EUR 69.
Tribefacturing
e.l.f. Cosmetics and Liquid Death, a business that makes canned water, have worked together on a heavy metal-themed makeup collection. The limited-edition Corpse Paint Vault costs USD 34 and comes in a coffin-themed box with five things. The collection, which came out in March 2024 and sold out in just one week, was based on the rebellious spirit of heavy metal music, which became famous in the 1960s and 1970s. It comes after e.l.f. Cosmetics' huge financial success, with net sales rising by 85% to USD 270.9 million.
Digital Anthropology Bot
Consumer Behavior Across Regions
North America: High expenditure on premium beauty products, with an emphasis on anti-aging and skincare innovations
Asia Pacific: Leads in digital engagement and e-commerce, with a notable preference for personalized beauty solutions.
Europe: Shows a strong preference for natural and organic products, reflecting a growing trend towards sustainability.
Latin America: There is a rising trend towards body positivity and natural beauty, with a strong preference for locally sourced, natural ingredients. Social media platforms play a crucial role in shaping beauty standards and trends in this region.
Global: There is an increasing demand for inclusive and diverse beauty products that cater to a wide range of skin tones and types, driven by a more global awareness of multicultural beauty needs.
Digital Anthropology Insights
Digital anthropology offers valuable insights into consumer behavior and cultural trends:
- Brand Communities: Understanding how brands create communities around their products can inform more effective marketing strategies.
- Cultural Relevance: Analyzing how beauty products are perceived in different cultures can help tailor products to meet diverse consumer needs.
- Digital Consumer Tribes: Identifying and engaging with digital tribes can lead to more targeted and effective marketing campaigns. For example, Metal Goddesses for the e.l.f. Cosmetics and Liquid Death alliance.
Recommendations
- Embrace Technology: Incorporate AI and AR to offer personalized experiences and enhance consumer satisfaction.
- Focus on Sustainability: Develop eco-friendly products and packaging to appeal to environmentally conscious consumers.
- Expand Online Presence: Invest in e-commerce and digital marketing strategies to capitalize on the growing online consumer base.
- Innovate Continuously: Keep pace with technological advancements and consumer expectations by regularly introducing new products.
- Engage with Communities: Build brand communities around shared values and interests to foster loyalty and enhance brand reputation.
In Short
The Beauty and Personal Care industry is at a pivotal point where technology, sustainability, and personalized consumer experiences are driving change. By leveraging these insights and adapting to evolving market conditions, businesses can thrive in this dynamic industry.
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