How the personal care industry will be disruptively innovative in the next 10 years

The beauty and personal care industry, driven by a demand for cosmetics and skin care products, is undergoing radical changes. The industry is thriving due to technology and product innovations, in addition to high-profile mergers and acquisitions, the introduction of virtual passes and the rise of online marketplaces.

Personal care products, cosmetics and even aesthetically pleasing makeup have a long and storied history in India. A growing number of domestic and international manufacturers have gradually expanded their presence, and the Indian beauty and retail market as a whole has seen newer products introduced over the years due to the strong influence of Western trends and the growth of Indian entrepreneurs.

The increasing number of working women, shifts in consumer preferences and higher disposable incomes all contribute to the industry’s rapid expansion. In 2018, the global skin care market was valued at USD 134.8 billion and is expected to grow at a CAGR of 4.4 percent through 2025, demonstrating the rapid expansion of the global cosmetics market. Zion Market Research predicts that the global beauty industry will be worth $863 billion by 2024.

Fast growth

Demand for premium products is growing in India as Indian consumers move from functional products to more sophisticated and specialized cosmetic products. Although the market is highly saturated, it is still one of the best investments for market players as consumers understand the need to look flawless. But the increasing priority given to health is inspiring new developments in industry and trade. The increasing interest in sun protection products such as sunscreen, lotions and face creams, along with products such as liquid collagen, also contributes to the optimistic outlook. Skin care accounts for about 45 percent of the personal care market.

Naturally derived ingredients from plants and other natural sources are becoming increasingly popular in the skin care industry. These products are preferred because they effectively transfer the antioxidant benefits of superfoods without irritating the skin. As a result of the global impact of the pandemic, many customers began to think more about ethically sourced, packaged and manufactured goods. The natural and organic cosmetics market is expected to grow to $22 billion by 2024. Empowered by digital technologies, the modern consumer is smart, environmentally conscious and choosy about the brands they support.

Improved product knowledge

The level of product knowledge among consumers has undoubtedly increased. Consumers today pay more attention to the information about who and what a product is intended to serve than to the marketing strategies used to sell it. Well-informed consumers prefer products that adhere to scientific principles. It’s also changing as companies have started making everything from facial cleansers and moisturizers to eye creams, face masks, sunscreen and even men’s makeup, which were previously ignored by the beauty industry. These products come in ever-expanding varieties, and they all seem to have reworked packaging and distribution to appeal to a younger audience.

The next generation’s belief in non-binary gender classification has prompted the cosmetics industry to adopt gender-neutral makeup lines to gain more acceptance from all people. There are many new products that make no effort to target a specific gender. Unisex products designed to meet the needs of both genders are replacing the once-popular practice of gender-specific marketing.

Going beyond subways

While it is true that the global pandemic has slowed down the development of the cosmetics industry in the country, the widespread growth of the digital and manufacturing sector has led to a booming demand for cosmetic products that is not limited to metro and mini-metro urban centers . Considering how fast e-commerce has grown, several new cutting-edge companies have sprung up to meet consumer demand.

The beauty industry continued to thrive, albeit at a slower pace, despite the difficulties caused by the pandemic. India’s personal care market experienced an immediate boom as a result of the country’s improved living standards, with Euromonitor International predicting annual growth of 9.7 percent between 2018 and 2023 before the pandemic hit. Consumer preferences have changed significantly over the past two years, resulting in an increasing preference for online shopping.

There is an increase in demand for the on-demand delivery of highly customized goods and services. Many people have different skin tones, hair textures and preferred fragrances, so there is a real demand for custom cosmetics in the health and beauty industry. The success of cosmetics and hygiene product manufacturers depends on their ability to deliver a unified, personalized and convenient omnichannel shopping experience.

Brands must be able to respond quickly to newly formed consumer expectations and changing behaviors and an effective response to the changing marketplace if they are to remain competitive and achieve economies of scale. The expansion of consumer-friendly e-commerce options, such as clickable brand websites and social media platforms for advertising personal care products, can only be good for business. The digitization of customer approach channels makes it possible to attract new customers and provide a great customer journey to existing customers.

Insight into self-care

Younger generations like Gen Z, who are acutely aware of social and environmental issues, will have a major impact on the future of the personal care industry, which will become more proactive, aware and motivated towards wellness. The cosmetics industry couldn’t be in a better position right now. The self-care segment of the Indian beauty market is growing rapidly. There has been a recent increase in the number of consumers actively seeking a more sustainable, eco-friendly and holistic beauty routine.

Increased global awareness and prominence have led consumers to take an ethical approach to their habits. Today, the ingredients of a product are where the action is to establish its value. This bodes well for those who are conscious about their beauty products, whose popularity is expected to rise. The emphasis has shifted from superficial improvements to more fundamental ones such as self-care, hygiene and safety.

Consumers’ heightened sensitivity to the quality of the goods they buy and the reputation of the brands they prefer play an important role. It is not only about the item itself, but also about the history of the company. Healthy and eco-friendly alternatives that won’t break the bank have become a top priority.

Looking further into the future, we can also expect cosmetics to have a dual purpose as skin care products. Hybrid cosmetics with skin benefits are a growing beauty category that is expected to explode next year, according to a recent Mintel report. Cosmetics with skincare benefits are a hot commodity, with both indie and mainstream brands racing to be first to market.

There is growth potential in the personal care industry, but it will have to adapt to changing consumer tastes. Data-driven customization can help make the strategy more customer-centric and responsive. With the cosmetics industry taking the lead in advocating for diversity and inclusion, we can expect a rapid rise in the popularity of organic and all-natural products in the future.

How the personal care industry will be disruptively innovative in the next 10 years

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