Beauty Rises

The beauty industry is a dynamic segment that is ripe for disruption, and is expected to reshape itself around an expanding array of products, channels, and markets before this decade is over.

- NANDINI BANERJEE

Beauty is a dynamic segment that is ripe for disruption, and it is estimated that the global industry will have reshaped itself around an expanding array of products, channels, and markets before this decade is over. Consumers, particularly younger generations, will spur this shift, as their own definitions of beauty morph while their perceptions of everything — from the meaning of sustainability and the role of influencers and key opinion leaders to the importance of self-care — will evolve.

Overall, beauty is expected to be characterized by “premiumization,” with the premium beauty tier projected to grow at an annual rate of 8 percent (compared with 5 percent in mass beauty) between 2022 and 2027, as consumers trade up and increase their spending, especially in fragrance and makeup. At the same time, it is expected that the landscape will become even more competitive, as a range of independent brands that successfully came to market over the past decade seek to scale. This intensifying competition has prompted incumbent brands and retailers to change as well. The consumers today are increasingly shopping across price points and studies have found that both online and offline stores influence their shopping behavior. Their preference for omnichannel shopping is expected to continue to fuel legacy brands’ shift online and independent labels’ move into a brick-and-mortar presence.

NOVEL INTENTIONS