From alcoholic beverages to travel and hospitality, the year of 2019 has marked a period of great change across industries. And, as we’ve discussed previously, beauty is one of the fastest-moving categories, with trends popping up and fading into the background at the blink of an eye. However, some of the changes in beauty are happening at a more macro level – many of which are made possible by continued advancements in technology.

In this article, we dissect some of the macro shifts happening in the beauty category and note how these changes are manifesting themselves in the marketplace. Let’s dive in!

Tech-Enabled Product Development 

Just like personalization is making its way into the world of health and nutrition, beauty brands are building connected systems that allow consumers to have their very own personalized skincare treatments. From L’Oreal’s wearable sensors that help monitor sun damage and skin pH levels to Shiseido’s AI-enabled mobile app that detects users’ skin conditions and dispenses a personalized formula each day, big brands are doing their part to help consumers tailor products to their exact needs.

For brands, the benefits are twofold. These technological innovations help them gather valuable data on their consumer base and also encourage loyalty within their own product systems. Going forward, there will be concerns to address – affordability and increased time in skincare routines, just to name a few – but consumer demand for personalized products should win out in the end.

Direct-to-Consumer Disruption

In case you haven’t noticed, there’s been a major influx of direct-to-consumer and indie brands in the beauty industry. While many of the industry’s giants remain on top, these privately-held ones are growing faster than their big corporate counterparts. To stay on top of this shift, there’s been an influx of incubator programs and M&A activity amongst big brands. From Sephora’s Accelerate program, which has invested in female founders since 2016, to L’Oreal’s Open Innovation program, there’s been a conscious effort to increase innovation. Other companies, like Ulta Beauty and Henkel, have acquired tech companies in hopes of enabling future product development.

Inclusivity in all Forms

Thanks to Rihanna and Fenty Beauty, inclusivity has become one of the most hot-button topics in the industry. This shift has caused brands to consider which audiences are currently being underserved and has challenged them to create products and services that bring those consumers into the fold. Fenty Beauty, of course, is a champion for people of color, but other brands are making an effort to include men, Latinx consumers, the Baby Boomer generation, teens, and children, too.

Farm-to-Face Movement and Sustainable Packaging

Plant-based ingredients aren’t just for food. In fact, ingredients like turmeric, coconut oil, and probiotics have been used in beauty products for years. However, sourcing ingredients can prove challenging for natural or organic brands when crop shortages can submarine the manufacturing process altogether. As a result, we’re seeing brands partner closely with farmers – or even operate their own farms – to counter these risks and control the production process.

The production process isn’t just changing in terms of the products themselves, though. With the increased focus on sustainability in virtually every sector of consumer goods – CPG and its replenishable products, especially – and pressure from governments across the globe, beauty brands are looking to reduce use of single-use packaging. From recyclable paper bottles to refillable dispensers, expect this trend to take flight in the coming years.

Is your beauty brand looking to share its latest innovation with consumers? Contact us today to learn how our suite of experiential-led services can help you build brand awareness, encourage product trial, and earn lifelong loyalists.

Source: CB Insights