The Urban Dictionary of Surge in Cosmetic Industry

Five distinct segments comprise the beauty industry: skincare, personal care, makeup, perfumes, and beauty technology. Asia is the region with the most revenue from beauty and personal care products. By 2028, the enormous nation should generate over $290 billion in revenue annually.

The most well-liked industrial segment is personal care products, which include hair care, bathing products, deodorant, shaving products, oral care, etc. The United States presently holds a dominant position in this market, with projected sales of over $90 billion by 2022.

The beauty and personal care market is becoming more and more popular for a variety of reasons, but COVID-19 is one of the main ones. In most nations, the pandemic's surge in the value of physical health also led to a rise in the emphasis on the importance of mental and overall wellness. 

In addition, social media has had a bigger impact on the sector. With more people having free time during the pandemic, publishing reviews on the platform became quite popular, and sharing personal product experiences helped boost sales significantly.

Factors Driving the Growth of Beauty and Cosmetics Sales

According to our US Beauty Consumer research, the cosmetics and beauty industry saw the fastest growth among US retail categories last year, with $94.36 billion in consumer expenditure.

In 2024, many customers want to spend more on cosmetic products, demonstrating the influence of longstanding phenomena like the "lipstick effect," millennial buying patterns, and social media-driven viral dupes.

1. The Lipstick Effect is Still Present

According to our researcher Sky Canaves, "Consumers are continuing to spend on beauty even while they cut back on other areas because it's seen as an affordable luxury." The lipstick effect has happened before during recessions, but this time it's amplified by the pandemic's enduring pattern of people paying more attention to their health and well-being. 

Big-name stores and brands are being affected. Premium skincare and perfumes helped Ulta Beauty post better-than-expected Q3 2023 sales, while e.l.f. Beauty had a 76% YoY increase in revenue in its fiscal Q2 2024.

2. Social Media Beauty Communities Are Expanding

Because of that, beauty awareness has become much more common, particularly among younger customers. As compared to other generations at those ages, Gen Z and even Gen Alpha now exhibit a far more nuanced understanding of beauty, according to Canaves. 

Customers are also prepared to purchase things online without trying them on in-store because they are willing to believe the advice of influencers and producers. According to an eMarketer survey, nearly half (48.0%) of US beauty shoppers bought new items based on online reviews from other consumers, as we mentioned in our research The Beauty Path to Purchase.

3. Product Swindlers Motivate Research

Consumers are spending more and discovering a wider range of products and brands due to the rise of con artists and companies offering lower-priced replicas of luxury goods. That may be the beginning of a new purchasing experience, one that starts with a ruse and progresses to the most costly—and genuine—option available for the goods. 

As per Morning Consult, over thirty-one percent of consumers have purposefully bought a fake. Millennials (44%) and Gen Zers (49%) have larger percentages.

4. The Influence of Millennials

According to Canaves, "Millennials are really in that sweet spot where they have more discretionary income than younger demographics and are very interested in beauty." Additionally, they go out a lot, and there's a strong relationship between attractiveness and authentic experiences like dining and travel. 

According to our US Beauty Consumer research, millennials report the highest amount of online beauty expenditure, with over a quarter (24.4%) of the cohort having spent $1,000 or more in the previous year. Over the coming year, a large increase in online beauty spending (at least double present levels) is anticipated by over one-third (36.0%) of millennials.

5. Giants in E-Commerce 

For instance, Temu isn't typically associated with beauty, but due to its affordable prices and large customer base, it has grown in popularity as a location to purchase styling and grooming supplies, according to Canaves. People will merely test them out because [Temu] goods are probably only a few dollars. 

Additionally, customers are filling their baskets with items by taking advantage of sales and discounts, according to her. According to Comscore, Temu attracted 65.2 million unique internet users in just five months, overtaking Target in the US.

India's Burgeoning Beauty Supply Side Sector.

1. India's Beautifying Industry: A Bright Future

According to Euromonitor International, the Indian cosmetics market is showing itself to be a goldmine of prospective growth opportunities, with a forecast CAGR of 6.7% over the next five years. 

Numerous variables, such as the developing middle class with higher disposable income levels and increased consumer awareness of skin care products, are responsible for this remarkable expansion.

2. The Cosmetics Industry's Rise in India

The growing desires of customers are fueling the flourishing Indian cosmetics business. Consumers are willing to spend money on high-quality beauty items as they grow increasingly self-conscious of their appearance and overall health. 

This offers beauty supply companies a fantastic chance to reach the sizable consumer base that exists in India.

3. A Major Player in the Indian Market: Beauty Sourcing

Bridging the gap between premium suppliers and the Indian beauty market, Beauty Sourcing has emerged as a significant player in this promising field. concentrating on the beauty supply-side industry, including packaging, OEM/ODM cosmetics and skincare products, hair, and nails. At the COSMO TECH EXPO INDIA 2023, Beauty Sourcing made a name for itself as a supply-side sourcing hub.

4. A Wide Variety of Products

Beauty Sourcing offers a wide variety of high-end suppliers to the Indian market this time around at COAMO TECH EXPO INDIA 2023, especially in the packaging industry. To meet the needs of different cosmetic enterprises, the platform provides a wide range of options, including droppers, bottles, jars, and creative packaging solutions.

The Development of Technology

Advanced technical advances have been made to increase the quality of surgeries as the cosmetic surgery industry grows. This is demonstrated by the increasing use of technical instruments, like ultrasonic saws, in cosmetic operations. Even while these technologies are fantastic, some may not be very important or useful for cosmetic surgery. 

It's fun to experiment with new technologies, but occasionally you have to be careful not to fall for the tricks. When doing an ultrasonic rhinoplasty, we employ ultrasonic saw technology, which increases our accuracy and lowers the possibility of patient harm. Says Dr. Esmail.

Conclusion

In conclusion, the COVID-19 epidemic, the growing emphasis on mental health and wellness, and the growing power of social media have all contributed to the astonishing expansion and resilience of the beauty and personal care industries. Retail will be a lucrative sector to watch with its continually expanding digital presence and creative ideas.