For people who are unaware of the size and scale of the beauty industry, let us begin the article, by stating some numbers-
- According to Forbes, the total market capitalization of the beauty industry is $572 Billion Dollars.
- Every 4 out of 5 American women have stated that they regularly follow the latest beauty trends.
- On average, an American woman uses 12 products on her body every single day. This includes hair products as well.
- The industry employs more than 1 million individuals in a direct or an indirect capacity across verticals.
- The average annual spend on cosmetics in the United States comes to roughly $3000 USD.
While there are hundreds of facts, which can be outlined to educate audiences about the size and scale of the industry, the above five ones are the most important ones.
In this article, we are going to speak to Amanda Jo of Organic Bunny and ask her about the top 5 trends changing the industry in 2021.
- The Rise of Digital Sales and Marketing-
We all know how consumer purchasing behavior is increasingly becoming influenced by digital. Brands are quick to capitalize on this insight and are investing heavily in digital platforms. This has allowed them to reach audiences in new and innovative ways.
Whether it is optimizing performance through social media, or starting high-performance E-commerce websites, beauty and cosmetic brands are leveraging them like never. This change will be accelerated by the pandemic where digital behavior is increasing every single day.
2. The Growth of Organic and Natural Brands-
With every passing day, consumers are becoming more aware of what they are putting on their skin. In some cases, there is a definite shift from chemical-based products to natural and organic ones. There are smaller, boutique brands, which are coming up in a major way.
The growth of digital platforms and the internet has also made information more easily available. Consumers can go to websites and check whether certain chemicals are safe for human use or not.
3.Increase in Governmental Regulations-
For a very long time, non-formal organizations, who are not part of the government are calling for beauty brands to be more regulated. Bodies like the EWG have routinely argued that the brands be brought under strict compliance by authorities like the FDA.
This is because, the industry has been successful in evading the use of chemicals, engage in predatory practices, use false advertising, and marketing to boost branding and sales. All these practices have been termed by groups like the EWG as being unethical.
4. Addition of Technology to the User Experience-
Amanda Jo states that brands are looking to exploit upcoming technologies like Artificial Intelligence, Machine Learning, Augmented Reality, and Virtual Reality to promote better user experiences. In other words, the emphasis on tech is going to increase in a major way.
This will allow brands to gain a competitive edge over their competitors as well as woo audiences in innovative and exciting ways. Many brands are investing in data analytics to understand their customers better and enable more sales and revenues.
5. The Popularity of Beauty Influencers will Increase-
Consumers who use beauty and skincare products always look for credible and authentic information. This is where the role of social media influencers is going to increase. With newer platforms like TikTok and others emerging, influencer importance in beauty will grow.
However, influencers also need to be certain about their brand endorsements and sponsorship details in front of audiences. It is important to maintain an impartial tone and be honest in front of their followers.
List of Top 5 Trends Changing the Beauty in 2021 according to Amanda Jo
The Final Word
It is true that the multi-billion-dollar beauty industry is experiencing a change. However, it is also true that big brands hold a majority share in terms of market value. Yes, smaller brands are trying to make inroads, but they have access to fewer resources. According to Amanda Jo, 2021 is going to be an interesting year for the industry especially in terms of sustainable products and digital transformation.