Personal Care Brands Jumping on Personalization and Convenience, Per NielsenIQ
The impacts of COVID-19 on the beauty industry are still being felt and personal care brands must invest in keeping up with new trends, according to NielsenIQ’s Global Beauty Innovation Report.
Monitoring industry trends across 14 markets, the report found that CPGs are increasingly focused on delivering clean and sustainable products, employing eco-friendly packaging, and reducing their carbon footprint. This trend is especially prominent in South Korea, where clean beauty has become a lifestyle choice.
Consumers across the world are scanning ingredient lists when deciding what to buy. They are also seeking products that support their physical, mental, and emotional health. That has led luxury brands to pursue products devised to improve emotional well-being along with healthy skin appearance. As a result, the French cosmetic industry has tapped into neuroscience research. Consumers want brands to address their individual needs by developing hair and skin quizzes.
More findings from NielsenIQ: The 5 things CPGs should know about Gen-Z consumers.
UK consumers prioritize product results and efficacy over brand names. That provides an opportunity for growth by enlisting celebrities, dermatologists, and influencers to promote products on social media. But brands need to be sure to spend wisely. For instance, China has 20 million influencers dubbed key opinion leaders, but 80% of sales can be traced to just 7% of them.
Beauty Preferences and Trends
At-home beauty treatments and direct-to-consumer products surged in popularity during the COVID-19 lockdown, and interest in the convenience they offer remains strong. Electric cosmetics and muscle stimulation devices were among the winners. Consumers are also increasingly able to access high-quality products at affordable prices thanks to innovative challenger brands that rival their high-end counterparts.
Innovation alone isn’t a recipe for success, with one-third of new launches failing due to a lack of support during their first year. However, brands that keep up with the biggest trends can win big.
Those who embraced innovation in 2023 were 2.5 times more likely to see overall sales growth as they attracted new buyers, created new usage occasions, and ensured their brand stayed top of mind. Optimizing the use of creative elements in ads is key to success, ensuring that promotions reach the target audience.
“Despite increasing caution in consumer spending, consumers are less willing to cut back on their beauty expenditures compared to other fast-moving consumer goods products, with 80% indicating they intend to maintain or increase their spending in this area,” NielsenIQ vice president of global client development Claire Marty said in a statement. “The beauty industry's global popularity continues to rise, with industry sales maintaining a double-digit growth rate across all regions, and is expected to bring an increase in scale of $300 billion over the next decade.”
