No one can deny the significance of the beauty industry. Most people use beauty products daily; beauty products have been an exciting trend over the past few years, especially after Covid 19 consumers have become fully aware of what they should use on their skin and how it can affect their health and well-being. Beauty products free of harmful chemicals like butylparaben and propylparaben are trendy nowadays. Using personal care and skin care products instead of cosmetics is also trendy on social contacts after Covid; about 22% of women changed their skincare routine after the Covid-19 pandemic. In addition, the concept of beauty products has changed to include sustainability throughout production.
The biggest beauty market, the amount of money spent on beauty routines, the top beauty industry figures, and the impact of social media on the beauty market are all covered in this piece.
What is the Beauty Industry?
The beauty industry means producing skincare, cosmetics, and personal care products. The Oxford Economics and British Beauty Council Divided the beauty industry recently into three categories and subcategories, which are as follows:
- Personal care and Maintenance: skin and body care, hair, personal care and hygiene, dental care, sun care, hair removal, and nail care.
- Personal Enhancement: accessories and applications, cosmetics, fragrance and perfume, hair enhancements and nail colour.
- Service: beauty treatments, hair services, and holistic treatments.
What Are the Top Beauty Industry Statistics?
Generally, the beauty industry is flourishing and will keep on growing; here is some eye-opening statistics which teach a lot:
- The beauty industry produces over 100$ billion in revenue worldwide.
- The men’s personal care market is growing and is projected to hit 276$ billion by 2030.
- Skincare is predicted to generate 177$ billion by 2025.
- Beauty companies spent around 7$ billion on advertising in 2022.
- Cosmetics online retail makes approximately 17$ billion.
The beauty industry was not going well during the pandemic in 2020, but it got better by 2021 and is expected to flourish in 2025. Here are some of the brand’s statistics in 2021:
- L’Oréal is in the lead among beauty products companies with over $35 billion (US dollars) in global sales.
- Unilever company has over $24 billion (US dollars) in global sales.
- Estée Lauder has over $16 billion (US dollars) in global sales.
- P&G has over $14 billion (US dollars) in global sales.
- Shiseido company with over $8 billion (US dollars) in global sales.
What is the Largest Beauty Market?
North Asia represents about 35% of the global beauty market, considered the most significant worldwide beauty marker. China is regarded as a leader in this region. North America is in second place with 26% of the market, and Europe is in third place with 22%.
How Much Do People Spend on Their Skin Care?
Remote work and lockdowns affected personal care routine; 22% of women reported spending more money and time on beauty products and skin care after the pandemic; they use, on average, five skincare products daily (cleansers, exfoliators, moisturisers, scrubs, etc.), 40% of facial skincare consumers reported using the products more often. American women spend, on average, $3000 yearly on beauty services and products. Therefore, most women believe self-care is a serious investment. However, men spend around $2000 annually on beauty services and products, so men get the same care as women and believe in its benefits. Some market experts predict the men’s personal care market will reach over $279 billion by 2030.
How Can Social Media Affect Beauty Marketing?
The beauty industry is constantly growing because beauty brands are always finding new innovative ways to connect with their customers. In addition, beauty brands and influencers always try to adapt to customers’ preferences. As a result, top industry marketers are expanding their web experiences and product lines to meet new demands; they try to create a positive customer experience and provide non-toxic or cruelty-free products that align with their values.
Beauty influencers have the largest followings on social media, digital advertising is growing at a rate of 2.2% yearly, and beauty companies spent an estimated $7.7 billion on advertising in 2022. Makeup digital marketing is 34% of the total spent in the beauty industry, although many still like to try products in person. 1/3 of beauty product consumers interact with social media with a solid 11.5% open rate; women aged between 18 and 54 say that YouTube is their first source for beauty-related content; they depend on watching “makeup transformation” videos. In addition, 82% of beauty consumers use Instagram at least once daily.
Instagram is the best match for beauty brands to approach their audiences, 67% of beauty consumers say they turn to influencers to learn more about new products, and 42% of shoppers say they’d buy a product advertised by an influencer. In comparison, 43% said they were uncertain, and 15% said “no.” Some beauty influencers have massive reach; for example, Nikkie de Jager, a Dutch cosmetics influencer, has about 14 million YouTube followers. Huda Kattan, a cosmetics artist, has over 50 million Instagram fans. Additionally, with over 25 million fans on Instagram, Kylie Cosmetics is the most popular beauty company.
Haircare has always been a stable section of the beauty industry; recent colouring trends are pointing to more growth potential:
- The global hair care market (includes colourants, shampoo, conditioner and hair oil) is worth over $75 billion.
- The hair care market is predicted to reach $134.3 billion by 2028.
- Hair colouring products make up 1/5th of the global hair care market (many consumers need products to manage their coloured hair at home after the pandemic).
Consumers are becoming more aware of the products they put on their bodies. So, they are over environmental responsibility, harmful chemicals, and animal cruelty; they are more into clean, natural, and organic beauty products. Here are some of the recent statistics:
- Sales of clean cosmetic items total $400 million a year.
- Beauty products without parabens sales are increasing by 80% quicker than the rest of the products.
- When making a purchase choice, 40.2% of consumers claim to search for natural ingredients; many modern consumers highly emphasise sustainability. But 17.6% of people claim they look for names.
- Through 2027, the market for organic cosmetics is anticipated to expand by 8.72% yearly.
- Compared to the US, the EU has prohibited over 150 times more chemicals for cosmetics use.
According to statistics, the future will be bright for the beauty industry, which is expected to continue growing. Beauty products are organic and healthier than before, online shopping and marketing experience will help flourish the whole industry, and consumers will be willing to get premium products. One of the greatest challenges facing clean beauty brands has been the high prices associated with its products, as mass-produced products tend to be significantly cheaper.
However, improved performance across the whole spectrum of clean beauty product lines suggests that this may no longer be a significant obstacle; some premium skincare brands like Aesop showed an average growth rate of 40% between 2020 and 2021 despite the economic downturn due to Covid-19. In addition, social media influencers are encouraging consumers to get more products and shift from in-store to online shopping, which will develop a potential explosion of e-commerce brands.