The cosmetics industry provides a wide range of products that are significant to fulfill certain requirements of end-users. The industry is constantly developing with the advent of the Internet and the usage of smartphones. According to a recent report by Fortune Business Insights™, the global cosmetics market size is set to reach USD 438.38 billion by 2026. The rising awareness among customers about the adverse effects of toxic chemicals is making them gradually shift towards organic makeup products. Also, the rising concerns of well-being are surging because of changes in sleep cycles and busy working hours.
COVID-19 Pandemic to Hinder Growth Fueled by Mask-wearing and Working from Home
The outbreak of the COVID-19 pandemic has shocked the beauty industry as prominent brands switched their manufacturing to produce cleaning agents and hand sanitizers. While mass-market and brick-and-mortar stores remain open, their revenues and customer traffic have declined. The Boots UK, for instance, announced that between March and April 2020, its overall sales lowered by two-thirds. Given the realities of mask-wearing, social distancing, and working from home, it has become less important to wear makeup. However, one possible exception is above-the-mask cosmetics. Alibaba, for instance, stated that in February 2020, sales of eye-makeup surged by 150%.
A Delicious Collaboration: e.l.f. Cosmetics & Chipotle to Launch Limited Edition Products
Customers, especially women, are on a constant exploration journey when it comes to beauty and personal care products. They often enjoy finding new brands and buying unique products. In today’s world, younger customers are inclining rapidly towards natural, artisanal, and locally-made products by rejecting the reputed brands their parents preferred. The need to post everything on social media platforms is a major reason for seeking out innovative products.
e.l.f. Cosmetics, for instance, collaborated with the American chain of fast-casual restaurants Chipotle in March 2021. They aim to revolutionize marketing on TikTok, a video-sharing social networking service popular with youngsters. The collaboration would result in the development of limited edition makeup products, namely, Eyes Chips Face Makeup Bag, Extra Guac Face Sponge Set, Make It Hot Lip Gloss, and e.l.f. x Chipotle Eyeshadow Palette. The company wants to cater to the social-savvy Gen Z customers.
There’s No Stopping: Celebrity-owned Beauty Brands are the Talk of the Town
While the past few years seem to have resulted in a mass influx of new cosmetics lines, celebrity beauty brands are definitely the one that’s rising. Today, there are countless celebrity-fronted collaborations, endorsements, and collections. They are no longer satisfied with having a collection or a product as part of an existing brand. The trend has shifted to full ownership.
The National News, for instance, declared in a report of August 2019 that the success of celebrity beauty brands is dependent on the evolution of conventional marketing. Social media enables celebrities to connect directly with their fans and helps them understand the usage of their products. At the same time, the growth of e-commerce channels has made such products more accessible. In February 2021, Sofia Vergara announced her plan to launch a beauty brand by joining hands with Chris Salgardo. Later that month, Kris Jenner, the mother of Kylie Jenner, mentioned launching a new beauty line that would include fragrances, hair-care, cosmetics, false eyelashes, nail-care, and skin-care products.
Dior Makeup Relaunches Refillable Rouge Dior Lipsticks to Encourage Recyclability
Nowadays, several cosmetics manufacturers are striving to bring sustainability by introducing unique products. In March 2021, Dior, a French luxury fashion house, for instance, relaunched the entire collection of its Rouge Dior lipsticks, including 75 shades in four finishes: velvet, matte, satin, and metallic. The best part about these lipsticks is that they are refillable. Peter Philips, the creative and image director of Dior Makeup, came up with the idea of recycling and eco-friendly packaging six years ago. According to him, Christian Dior first launched refillable lipsticks in the early 50s. Hence, the new launch would help the company gain more customers who can purchase the lipstick as a luxury object and then buy refills of the same.
Building Gender Equality: Anusha Swamy and Hari Vatsa Unveil ‘Myst Cosmetics’ in India
Various young and independent brands are presently supporting a surge in creativity. Every day, a new brand is popping up across the globe, carrying a new concept about how to remain or become more beautiful with minimal makeup. These beauty brands are launching online and physical retail channels to increase sales.
For instance, in February 2021, Anusha Swamy, a Chennai-based make-up artist, joined hands with Hari Vatsa to unveil a new brand named Myst Cosmetics. The duo developed genderless products that are rooted in body positivity and diversity. The ingredients in these products are cruelty-free and vegan, with the packaging made mainly of tin, cardboard, and paper. It first unveiled ‘Drama,’ a single eyeshadow palette to reach out to women, cis-men, and drag queens of varying skin tones.
Yatsen Holding Limited Acquires Eve Lom from Manzanita Capital to Strengthen Position
Major cosmetics companies are engaging in the acquisition strategy to drive creativity and draw more founders. These are taking place as big beauty brands are threatened by local, independent brands that customers are shifting towards for product diversifications. In March 2021, for instance, Yatsen Holding Limited, a China-based producer of skincare and cosmetics products, signed an agreement to acquire Manzanita Capital’s prestige skincare brand called Eve Lom. As per one of the company officials, “This acquisition would help us enhance our product offerings and enrich our global presence.”
Future Looks Bright: Emergence of AR and VR to Help Companies Gain Impetus
The COVID-19 pandemic has changed in-person shopping experiences to virtual ones. Several companies are expected to move on to augmented reality (AR) and virtual reality (VR) by developing ways to offer both autonomy and trust to do online makeup shopping in the near future. Sephora, for instance, has an app that allows customers to try products virtually. State-of-the-art technologies are anticipated to streamline sales of cosmetics, and brands will have to keep up with the competition to gain more trust and exposure.
Socurce of Information:
https://www.fortunebusinessinsights.com/cosmetics-market-102614
Written by
Reeti Banerjee