Beauty market

After the reopening in 2021 of most brick-and-mortar stores and growth in e-commerce, the beauty market again proved resilient in the face of the crisis, as reflected in sales volumes, which stood up well to rising prices. Apart from North Asia, which was impacted by the public health situation in China, the market grew significantly in all geographic Zones, with double-digit growth in SAPMENA – SSA and Latin America.
Despite successive crises, the global cosmetics market demonstrated its robustness and resilience in the face of widespread economic slowdown. The market is constantly innovating and adapting to the new expectations of consumers, who are looking not only for quality, performance and innovation but also meaning in what they buy, including in beauty.

Social commerce is a massive social media trend that is revolutionising online buying practices. Consumers prefer to buy products and services recommended by people they trust: they are looking for an inspiring, informative, secure buyer experience. Social commerce fulfils these needs by offering a better buying experience that fosters discovery, personalisation and trust thanks to the expertise and authenticity of individual influencers. Micro-influencers, who are seen as more transparent and sincere about the brands they promote, are becoming the ambassadors of choice.

According to a study carried out in January 2022, the global social commerce industry is estimated at USD 492 billion and is set to grow three times faster than traditional e-commerce, reaching USD 1.2 trillion by 2025. Growth will likely be driven mainly by generations Y and Z, who will account for 62% of global social commerce spending by 2025.

Gaming is one of the fastest growing media sectors, with a huge number of beauty product consumers incorporating makeup into their streaming activities. The convergence between gaming and beauty provides creative new marketing opportunities, enabling brands to craft innovative and engaging promotional campaigns to reach new audiences.

Immersive experiences in the metaverse provide a tremendous opportunity for beauty brands to strengthen their relationship with connected consumers as well as their loyalty, by bringing the real and digital worlds closer together. The booming metaverse market is set to reach USD 800 billion by 2024. Consumers can, for example, express their creativity and character with a personalised avatar offering an infinite variety of looks covering makeup, hair and even fragrance, defining beauty from a new angle – that of Web 4.0.

Beauty and wellness often go hand-in-hand, and both sectors are changing to accommodate new consumer needs. The wellness market is a highly innovative sector that is drawing more and more players, particularly in the areas of personalised nutrition, vitamins and beauty.

At a time when consumers are increasingly online and looking for greater authenticity and personalisation, sustainable development and inclusion are becoming priorities for beauty and wellness companies. The inner/outer beauty trend continues to grow and consumers are ever more inclined to choose solutions with a focus on health, wellness and naturalness. 51% of people surveyed by Euromonitor said beauty means “looking healthy”, followed by “feeling good about yourself” and “having self-confidence”.