Because our definition of “beautiful” tends to evolve, there is always a potential for growth within the cosmetic industry. Although there is a certain perception that this industry only caters to certain demographics, the fact is that all of us are consumers for this industry at some point.
In 2015, the cosmetic industry generated $56.2 billion in the United States alone.
Did you know that the average person takes more than an hour to get ready for work on a Monday, but only 19 minutes to get ready for work on a Friday?
Home care will always be the cornerstone of the cosmetic industry. From lipstick to facial cleansers and everything in-between, we don’t give a second thought to the things we do to make ourselves feel confident in our looks every day. It’s just something that we do. This is why these cosmetic industry trends will affect us all in some way.
Cosmetic Industry Trends to Focus Upon
- Hair salons and barber shops, for example, rely on 5-15% of their revenue from hair care product sales.
- Products that promise no animal testing or that are all natural tend to establish loyal niche markets and can often charge a premium price.
- 82% of women now believe that social media drives modern cosmetic industry trends.
- The UK cosmetics market was worth £8.438 million in 2013, but the European Union cosmetics market was worth £72 billion.
- The markup margin for face makeup, such as foundation and blush, is 31%-36%, Lipstick/lip gloss is 29%-34%, while eye makeup is 28%-33%.
- An estimated $14 billion in natural or organic beauty products were sold in the US and Europe in 2015.
- Sales of nail polishes have seen a worldwide growth of 11%.
- Since 2011, premium makeup brands have been seeing an average of 5% growth after steep declines during the recession years of 2008-2009.
- In the US, consumers spend more on the cosmetic industry than they do on foreign cars or televisions. Not bad for an industry that doesn’t have its products reviewed by the FDA before they hit store shelves.
The cosmetic industry has always been strong. This is because we all want to be confident with the reflection that we see in the mirror. To make sure we have this confidence, we purchase supplies and services within the cosmetic industry. It’s a simple value proposition: we purchase items or services that make us look and feel good. If that doesn’t happen, then we don’t go back. This is the challenge for the cosmetic industry trends today. What makes one person feel beautiful is what may make another feel like a complete mess.
Cleaning Up the Mess in the Cosmetic Industry
- Out of 33 brands tested, about 60% of lipsticks were found to contain lead.
- 86% of women admit to using mascara that has exceeded its expiration date. 79% of mascara tubes in a recent study referenced by Style Caster were found to contain staph bacteria.
- 75% of men over the age of 18 use zero facial skin products according to research conducting by the NPD Group.
- 40% of women in the US suffer from some sort of hair loss at one stage of their life.
- With $768 million in sales in 2011, nail polish and nail care products saw a 32% growth surge in in 2011 and sales have continued to be strong. 2012 figures showed $932 million in sales.
- Just 4% of women globally feel that they are beautiful. In 2004, just 2% of women felt this way.
- 80% of women say that every woman has something beautiful about her, but do not say the same thing about themselves.
- Hair that is wet and treated with color has a 200% greater chance of experiencing damage when compared to untreated hair.
- 33% of women state that they refuse to go out into public without wearing some sort of makeup.
Here’s the issue: for the cosmetic industry to be able to continue innovating, they must be able to identify problems that people are facing today. For example: how do men keep their faces clean if they aren’t using a facial cleanser? Discovering a product that would encourage men to take care of that skin could be a major boon for the cosmetics industry. The same is true for makeup products that don’t harbor bacteria or have a longer shelf life. We all want to look good, but not all of us have the cash on hand to be able to constantly update the cosmetics we keep at home. The cosmetic industry trends which focus on these key areas will likely see the most success.
How We All Make Ourselves Beautiful
- There are 86,000 hair care business locations in the United States, taking a 24% market share and first place in the cosmetics industry.
- 23.7% of purchases in the cosmetic industry involve facial skin care, which takes a close second in the industry for total market share.
- Actual cosmetics make up 14.6% of the cosmetic industry, while perfumes and deoderants each claim about 20% of the market share when combined.
- Fragrances only make up 9.5% of the market share, but account for over $500 million in total sales.
- Women will spend an average of about $150 per year on cosmetic products, with women living in the US West spending about 10% more than the national average.
- 57% of women admit purchasing their cosmetics from a retail discount store in the past 180 days, such as Walmart or Target, as a way of saving money.
- 80% of the revenues that are gathered by the cosmetic industry annually come from just 10% of its customer base.
- 45% of women admit that they cut back on their cosmetic purchases when they are concerned about how much money their household is earning.
- 82% of cosmetic industry consumers say that wearing makeup helps them to feel more confident about themselves.
- Another 86% of consumers say that wearing makeup improves their self-image.
- Globally the APAC region leads in sales growth, with women nearly matching US women in the amount spent every year on cosmetic supplies.
- Professional skin are assistance is expected to generate over $10 billion in revenues for the cosmetics industry by 2018.
For guys, the cosmetic industry might involve scissors, aftershave, and subscription boxes from the Dollar Shave Club. For women, the industry is essential to their self-confidence. Yet both genders play an enormous role in the trends that we see from the cosmetic industry. Most consumers are going to do their best to look beautiful without spending a whole lot of cash. This is why there is such a push to purchase makeup at discount stores, especially in times of recession or stagnant wages.
The Future of the Cosmetic Industry
- Products and services that are focused on the retired or retiring population will have an increased focus because many in this age demographic have available money to spend.
- Cosmetics for kids will also see an increase in attention, especially from a skin care point of view. Millennials in particular are very concerned about making sure their children have the proper levels of protection needed.
- Consumer-specific services will continue to evolve. A great example of this is Cookie Cutters, which offers hair care options for kids in a fun environment.
- Men’s products and services is a relatively new specific category for the cosmetic industry, but one that will continue to see slow and steady growth over the years.
- Beauty franchises derive up to 15% of their revenue from product sales, so there will continue to be an importance placed on putting the right product on the shelves. These products will literally make or break a business.
- From an employment standpoint, massage therapists had 168,800 people employed in 2014 with a an incredible 22%growth in this section of the industry by 2024!
- Hair care providers and cosmetologists are expected to see a 10% growth rate in the next decade, as are manicurists and pedicurists.
- Sustainable and organic cosmetics will also be a growing trend, especially for Millennials, as they strive to find products that are healthy for them and the rest of the world.
There are numerous opportunities available within the cosmetic industry right now. The struggle is to find what niche each business will be able to capitalize upon. Some local markets may see a large number of men seeking personal care options. Other markets, such as a military town like Oak Harbor, WA may see very little in the way of facial skin care needs for men. For the cosmetic industry to thrive, these trends must be evaluated locally by each business to determine its viability. These local factors, when combined with expected national and global trends, show that we all will continue to want to be beautiful in our own unique way.