The beauty industry is entering an era of post-saturation
While the beauty industry is undoubtedly experiencing a renaissance of innovation and consumer-centricity, the influx of new brands and products has pushed the industry past the point of oversaturation. As the rules of the game get tougher, the industry is entering into a period of filtering with only the most viable brands coming out on top. Brands looking to grow in 2024 will need to have a clear differentiating factor to remain successful.
Skin at the Forefront
With consumers more informed and discerning than ever before, they’re applying the same criteria to products as they do to their nutritional, exercise, and supplement choices, leading to a significant shift towards functionality. Consumers are pushing the importance of healthy complexions as the basis of beauty, giving rise to the skinification trend. With brands like Beekman 1802 highlighting the opportunities for skinificaiton of cosmetics, haircare and bodycare; brands are mimicking the skincare category and its complementary product categories to diversify their product offerings.
Skincare is increasingly becoming intricately linked with health and wellbeing with an increasing number of black consumers turning their hair routines into a wellbeing practice (Stylus, 2023). Achieving flawless complexion is no longer enough; it’s about nurturing and supporting the skin as a vital part of overall health. Consumers are recognising that the skin reflects their inner wellbeing.
Transparency Reigns Supreme
Demands for transparency continue as ingredient savvy consumers search for products and ingredients that are safe for their bodies and the environment. Despite ingredients such as hyaluronic acid, retinol, and vitamin C becoming household names, Angela Caglia of Angela Caglia Skincare, who will be speaking at this year’s Beauty Connect, highlights that consumers need help understanding the complete list of ingredients, rather than just relying on the key ingredients highlighted by many brands on their websites and marketing claims that lack scientific evidence.
Undoubtedly, brands are proactively becoming more transparent about their ingredients, production processes and sustainability efforts. However, transparency often transcends physical product and encompasses the social realm as well. Brands need to recognise that their impact touches the lives of individuals and society at large. Having recently caught up with Jenn Harper, CEO of Cheekbone Beauty, she told us about the importance of social impact as a brand and how Cheekbone Beauty give back through their Cheekbone Scholarship Fund. Jenn will also be joining this year’s Beauty Connect as a mainstage speaker.
The Age of Authenticity
Beauty trends have exploded since the rise of TikTok, with the platform managing to position itself as the go-to community platform for beauty consumers and brands looking to launch, grow and build followings with viral reach (THG Ingenuity, 2023). However, the rise of social media coupled with increased consumer scepticism has meant that authenticity has come into question like never before.
Whilst brands have collaborated with influencers in the past, TikTok has democratised content creation allowing creators to use the platform in a less filtered and more authentic way. With consumers resonating with relatable experiences, creators can build authentic relationships with their audiences.
The Sci-Fi Universe
From lab-grown ingredients to microbiome friendly products, biotech is reshaping formulation like never before. The ability to bypass natural resource extraction enables brands to align with growing environmental consciousness. However, up until now, brands have mainly been focused on plant-based biotech ingredients. Angela Caglia is looking to introduce the first to market proprietary product BIOMSC™️ which utilises the first commercialised human Mesenchymal stem cell conditioned media.
THE UNSEEN has focused on bringing materials from other sectors across into the beauty space to solve the sustainability of raw materials or to bring never before seen colours and categories to the community. A key issue that Lauren highlights is regulation meeting the speed of material innovation; how do brands safely bring new materials into the colour cosmetics sector to make better products for people and the planet? You can meet Lauren Bowker, Founder of THE UNSEEN at this year’s Beauty Connect.
Whilst oversaturation poses challenges to the beauty industry, it also offers opportunities for brands to innovate and differentiate themselves to create meaningful connections with their consumers. Brands looking to excel in 2024 can identify opportunities for growth whilst connecting with retailers, Investors and M&A experts at this year’s Beauty Connect (November 6-8 | Los Angeles).
For more information go to beautyconnectla.com
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