{"id":217796,"date":"2020-09-07T05:04:10","date_gmt":"2020-09-07T05:04:10","guid":{"rendered":"https:\/\/nexuswise.com\/my\/213440-2\/"},"modified":"2021-07-12T12:05:39","modified_gmt":"2021-07-12T04:05:39","slug":"new-beauty-market-disruption-but-not-interruption","status":"publish","type":"post","link":"https:\/\/nexuswise.com\/my\/new-beauty-market-disruption-but-not-interruption\/","title":{"rendered":"New Beauty: Market Disruption, But Not Interruption"},"content":{"rendered":"
Health and wellness will continue to be top priorities for consumers even after the coronavirus pandemic.<\/p>\n
The beauty industry is constantly evolving, responding to consumer demands of the day and age. Health\/wellness, hygiene, and feeling\/looking more youthful have been consistent priorities over time. The global coronavirus pandemic, however, has amplified many of these and other concerns, creating opportunities for proven products to meet shifting market needs.<\/p>\n
In total, according to estimates from SPINS in February 2020, beauty accounts for $41.6 billion annually in the U.S. Hair care is the largest segment with dollar sales reaching $10.3 billion and sales growth of 1.1%. Skin care and personal cleansing were also growing, but other segments, including cosmetics, were experiencing declines.<\/p>\n
Natural\/clean formulations, science-driven solutions with demonstrated efficacy, sustainability, transparency, and convenience have been top drivers for today\u2019s market, according to experts.<\/p>\n
While beauty\/personal care (particularly premium and luxury products) seems to be among the top industries negatively impacted by the economic downturn, according to Euromonitor International data from May 2020, consumer health generally appears resilient. More than 30% of respondents to an April 2020 Euromonitor survey said they believe consumers will be buying more health and wellness-related products permanently as a result of the coronavirus pandemic.<\/p>\n
Interestingly, 65% of global consumers consider mental well-being as a key factor in perceptions of health, and 34% take measures to manage stress, anxiety, and mental health, according to Euromonitor.<\/p>\n
Meanwhile, the dietary\/nutritional supplement market in the U.S. is worth about $36 billion, according to IRI sales data from 2019, and is expected to grow at healthy 10% CAGR over the next five years. With demand continuing to surge for preventive\/wellness solutions, particularly immune health and sleep\/stress products and ingredients, opportunities persist despite obvious challenges.<\/p>\n
Reshaping the Market<\/span> \u201cThe desire for clean products\/ingredients continues to grow with consumers who want less chemicals in their products due to increased concerns about those chemicals,\u201d said Molyneaux. \u201cIn addition, many brands both niche and mainstream have put new efforts into formulations as well as marketing communications. We\u2019ve also seen more new brand initiatives from larger mainstream companies such as Ulta\u2019s new clean product certifications. These types of programs are educating mainstream consumers and growing the categories.\u201d<\/p>\n According to analysis from market research firm Mintel, COVID-19 is impacting the way consumers approach beauty and personal care products, especially when they consider ingredient safety, cleanliness and shelf life.<\/p>\n \u201cAs the majority of Americans limit their interactions outside the home due to the COVID-19 pandemic, facial skin care routines become less of a priority, as consumers shift focus to their physical and mental health,\u201d noted Clare Hennigan, senior beauty analyst at Mintel. \u201cIn addition, economic instability leads to more conservative category spending. As a result, the market is expected to see slower than expected growth in 2020. Once safety measures are lifted, typical skin care routines will likely fall back into place, leading to market recovery. A renewed focus on health and hygiene drives NPD (new product development), increasing demand for clean formulas, and creating opportunities for touchless formats.\u201d<\/p>\n In a blog post in March 2020, Hennigan also discussed how the pandemic and economic downturn may affect the natural\/clean beauty market. While the concept of \u201cclean beauty\u201d began with focus on \u201cnatural\u201d formulations, the movement has evolved to consider \u201csafety, transparency, sourcing\/manufacturing practices and a slew of other factors that play into the final product,\u201d she noted.<\/p>\n \u201cThe natural movement continues to shape the beauty industry as women become more conscientious of the ingredients in beauty products and seek out what is considered safe,\u201d Hennigan said. \u201cHowever, efficacy is also top-of-mind, with more than one-third of women agreeing that they care more about the effectiveness of a product than the ingredients it uses. While women expect brands to use natural ingredients, they ultimately choose a product based on efficacy, making it increasingly important for brands to link ingredient safety with function.\u201d<\/p>\n Market Forces<\/span> The beauty-from-within movement has gained significant traction as people search for holistic health solutions, said Tim Hammond, vice president of sales and marketing, Bergstrom Nutrition. \u201cConsumers now understand how powerful skin support can be when addressing and improving the underlying aspects of skin health.\u201d<\/p>\n The beauty supplement market is driven by recognition that true \u201cbeauty\u201d reflects a healthy body and good lifestyle practices. \u201cIt is also a celebration of one\u2019s unique features; beauty is health, and health is beauty, no matter what age or gender,\u201d said Sam Michini, vice president of marketing and strategy, Deerland Probiotics & Enzymes.<\/p>\n \u201cMen are also making up more of the beauty care market, including supplements, and the gender-neutral beauty market is ramping up. According to NPD Group\u2019s iGen Beauty Consumer report, nearly 40% of young adults aged 18 to 22 have shown interest in and support of gender-neutral beauty.\u201d<\/p>\n Bornet noted better understanding of the role nutrition plays for skin health and the idea of healthy skin from the inside-out. \u201cConsumers are simplifying their routines and embracing a minimalist lifestyle, which includes seeking skin care products that provide multi-tasking benefits to address their skin concerns rather than purchasing multiple creams and products.\u201d<\/p>\n Consumers are also spending more time researching products and ingredients to inform their purchase decisions, he said. \u201cThey are most interested in natural ingredients backed by science to support their skin health without the potential irritation or side effects of other products.\u201d<\/p>\n Katie Ferren, vice president, sales and marketing, Blue California noted increasing interest in ingestible beauty\/wellness products, citing data from Euromonitor International, which indicated the beauty supplement market now accounts for over $80 million in sales in the U.S. alone.<\/p>\n Mainstream retailers have embraced the category, said Ferren, and at the same time it is also supported by online specialty brands. \u201cFrom a consumer demographic perspective, Baby Boomers and now Gen Xers are looking for products that support beauty from within, and they are a large portion of the population with higher disposable income levels.\u201d<\/p>\n Meeting Expectations<\/span> Figure 1. Percent Growth in Attributes Consumers Indicate are Very Important Toward Their Personal Care Product Purchase (2015 \u2013 2019) (Orange shading denotes conventional attributes; Green shading denotes environmental\/sustainable attributes)<\/strong><\/p>\n
\nHousehold penetration for natural and functional topical products, as well as beauty from within formulations, has been increasing, according to Maryellen Molyneaux, managing partner, Natural Marketing Institute (NMI).<\/p>\n
\nAn increasing number of individuals in their 20s and 30s are interested in starting skin care routines early to prevent signs of aging later in life, noted S\u00e9bastien Bornet, vice president of global sales & marketing at\u202fHorphag\u202fResearch, which supplies Pycnogenol French maritime pine bark extract. \u201cOne-in-five young women are concerned about skin health and wrinkles before hitting their mid-20s, and one-in-three women under the age of 35 regularly use products to prevent signs of aging.\u201d<\/p>\n
\nIn terms of what consumers expect from products and brands, while \u201cconventional\u201d attributes such as \u201ceffective\u201d and \u201cgood value\u201d are highly important to personal care product purchases, according to Molyneaux, growth is strongest across sustainable attributes, and they have shown the most growth over the past 5 years (Figure 1). \u201cEffective and good-value are declining, indicating consumers are more interested in clean products,\u201d Molyneaux noted.<\/p>\n