While beauty showed a quick turnaround from the pandemic in 2021, this year is a different story.
“As inflation is broadening, growth will be slightly slower in 2022 and in the coming years,” said Dana Kreutzer, Project Lead of Consumer Products Practice at Kline. “In 2021, dollar volume was largely driven by increased prices and less promotional activity in certain product classes such as makeup. Fragrances and makeup have rebounded after a multi-year slump, while skin care remains resilient,” added Dana Kreutzer.
Several key trends are contributing to beauty’s success, including:
- Brands are crossing over into new categories, with many facial skin care or personal cleansing brands tapping into hand and body, sun care, or hair care, such as The Ordinary.
- Hybrid beauty is big with products offering makeup, skin, and SPF benefits.
- Consumers are turning to derms for expertise more frequently. This is helping bring more support for skin care but also hair care brands.
- Digital efforts are now a mainstay with TikTok, in particular, creating a path to success for products, such as Glow Recipe’s Watermelon Dew Drops that went viral.
- While e-commerce is now a core focus for most marketers, newly formed partnerships such as Ulta x Target and Sephora x Kohl’s are keeping things fresh
Which trends are likely to continue to drive the beauty industry forward? What challenges could hinder growth? Find out from this report, based on key insights from Kline’s recently published Cosmetics & Toiletries USA and Beauty Retailing USA reports. Click here to download.
