Does industry offer her what she really wants?
Last year, the beauty industry had $ 570 billion in world income, the industry increased by 9.3% and was expected to increase by 8.4% per year until 2028, according to Euromonitor International.
Figures like this do not occur in most sectors and especially when they are already as large as the beauty industry. It is therefore not surprising that the company continues to attract investors in search of growth that pay high values, even for small businesses.
The high prices paid for beauty companies continue to attract entrepreneurs to space. In turn, they create a continuous flow of startups that attract even more investors interest. The cycle continues to build; Consumers want a novelty, entrepreneurs create startups, invest investors. As long as consumers want what is offered, it can last a long time.
What do consumers want?
For a certain time, consumers from around the world spent more in skin care than on any other part of the beauty activity. This is clearly what they wanted so far.
The accent on skin care has also worked well to facilitate online purchases because, unlike so many cosmetics, you do not need a beauty bar to decide to buy.
But the growth of other sub-sectors, including color cosmetics, perfume, deodorants, sun care and men’s grooming, should be higher than skin care until 2028, according to the Presentation of Euromonitor during the Beauty Fifty Fift Matter event.
Even more than the categories of faster growth products, when you dive into what consumers say they are interested, you are starting to see a concentration far from the creation and sale of traditional beauty products.
Euromonitor questioned consumers about their perception of health and well-being. The majority of consumers said that “being healthy” meant mental well-being, feeling good, having a healthy immune system, emotional well-being and the absence of illness.
A huge 80% or more said they would pay more for personalized products depending on DNA tests or detailed hair or skin diagnosis, medical approval or drug formulation. But most beauty and well-being products are not sold this way. So many consumers want it and pay it, but they will not get it.
The main medical concerns for older consumers were menopause and joint / muscle pain while for young consumers, it was stress, anxiety and menstrual pain.
But when the respondents in the industry were interviewed the most important launches of new products or services in the past year, the largest number (more than 40%) said new formulations and sustainable packaging.
Disconnection and opportunity
The beauty industry markets products to help consumers appear better, but in recent years and especially that the accent on skin care has developed, the marketing accent has been on health , well-being and healthy skin.
But consumers’ interest in health and well-being focuses on things that the beauty industry is not paying attention. It is a missed opportunity.
Consumers want real and proven solutions for medical and emotional problems. But the industry focuses on new formulations for existing products.
The industry approach will continue to generate success for a while. But it lacks a huge opportunity.
There are many startups using DNA and hair analysis / skin to create deeper and personalized solutions. The big players dip their toes in the water, but the youngest and small businesses are much more concentrated on it.
What these companies do will resonate with consumers, because it addresses the well-being problems that consumers care about. Large beauty societies could also do it, but they should rotate well-being inside the human body and not only on the surface.