The beauty and cosmetics industry is seeing a renaissance, as consumers adjust to a hybrid work-life existence in this post pandemic era, but don’t expect makeup buying habits to return to what they were.
Aligning with the convenience of fast, low-maintenance looks adopted during the past couple of years, flexible and low-key beauty lifestyles are gaining prominence. Natural and vegan cosmetics also continue to grow in popularity as the world becomes more conscious of ingredients and their overall environmental impact. And with inflation surging, consumers are prioritizing fewer products that deliver more effective results, personalized to their preferences and needs. For brands, this translates into an expanded set of consumer expectations to be met, many of which will shape the landscape of the cosmetics and beauty industry.
In order to help our brand and agency partners navigate the year ahead, we’ve put together a primer on some key trends to watch out for in the cosmetics industry and offer up some strategies to contend with today’s changing consumer profile.
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Cosmetics buyers today can take their pick from a plethora of offerings from old-guard brands as well as the rising tide of indie entrants -- all catering to their specific requirements and desires for expression. As a result, consumers are purchasing across an ever wider range of brand and price categories in order to best suit their needs. 71% of buyers said they tried a beauty or personal care product that was new to them in 2022, with 54% claiming to have used novel makeup products. As e-commerce and social commerce are making it easier than ever for consumers to access new cosmetic products and experiment with the latest trends, brands have a unique opportunity to reach entirely new audiences and demographics. See also our tips on beauty industry marketing.
The beauty & cosmetics industry is seeing an increased consumer focus on product usability and overall sustainability, driven by a desire for ethically manufactured products that also straddle the line with skincare. Despite economically challenging times, it’s becoming evident that consumers will still spend on cosmetics that make their life simpler and that address their values. For brands, connecting with today’s beauty buyer will involve keeping pace with growing consumer needs for open sourcing, transparency, and greater inclusivity - and with consumers prioritizing attributes over brand names, agile brands will tap into data-driven promotional strategies to increase their visibility in a crowded marketplace.
Snipp provides promotions and loyalty programs designed to engage customers across the entire path to purchase - in-store, at home and online. Clients can run one-off promotions to evergreen loyalty programs that meet objectives at a brand, shopper, category, and portfolio level and customizable by region, language, channel, retailer and more.
SnippCARE, our modular Customer Acquisition, Retention & Engagement platform, powered by our market-leading receipt processing platform for purchase and non=purchase validation, enables implementation of ROI-driven, omni-channel programs, globally. We capture zero-party data in real time and build proprietary data sets, driving engagement, personalization and brand loyalty and enabling intelligent decision-making. It’s tailor-made for brands to build deeper relationships with their customers.
For over a decade, we have worked with the world’s leading organizations in both B2C and B2B spaces, across industry verticals including CPG, retail, pharma, utility, home and outdoor, alcohol, tobacco, lifestyle and more.