Expand your offerings to include these four fast-growing, customer pleasers.
A close look at recent industry reports and findings revealed these four product categories of beauty market growth. Be sure to include them in your product curation this year!
Market research firm Spate reported more than a 49 percent increase in Google searches in the CBD category in 2019. It’s no surprise the CBD global skincare market is expected to reach $1.7 billion by 2025, according to Grand View Research, with a mind-boggling expected compound annual growth of over 30 percent.
Short for cannabidiol, CBD is one of the chemical compounds that can be extracted from hemp. Unlike the cannabis compound tetrahydrocannabinol (THC) found in high amounts in hemp's cousin marijuana, CBD is non-psychoactive. It is regarded for its calming and anti-inflammatory properties. CBD and CBD oil are being used to address an array of skin concerns from acne to dryness to sensitivity. Beauty skincare brands are embracing CBD for its reparative, antiaging properties, featuring it in serums, moisturizers, eye creams and more. Although clinical research testing the efficacy of CBD is still pending, most experts agree that topical application of CBD is not harmful, and will likely provide benefits.
North America has been the largest consumer base for CBD-infused skincare products and is expected to lead the pack as cannabis cultivation laws are expected to continue to loosen throughout the U.S.. With countless celebrity endorsements, CBD has gained enormous popularity. As growth continues, beauty retailers are making shelf space a priority (including Sephora and Ulta, who both began carrying CBD product in 2019).
Sustainability as the Standard
“Green” is officially the new black in terms of natural ingredients, manufacturing and the packaging of beauty products. Countless brands and manufacturers, including heavy hitters like L’Oréal, Unilever, Estée Lauder Companies and Procter & Gamble, have made public commitments within the last few years, promising to limit or convert plastic packaging into recyclable, compostable and refillable options.
The environmental benefits of sustainable beauty are only one part of the growth, along with increased customer demand for accountability. Fifty-five percent of people polled in a recent report by J. Walter Thompson Intelligence titled The New Sustainability: Regeneration, said they are more likely to buy beauty products if the company claims to be sustainable. The same report found that 77 percent of people think products with a negative environmental impact should cost more.
The landscape for a generalized beauty approach with limited options is a thing of the past. At CosmoProf North America 2019, Andrew McDougall of market intelligence agency Mintel shared information on the growing desire for “bespoke beauty,” a market that focuses on a customer’s uniqueness rather than age, skin or body type. The firm recently surveyed several European groups about beauty topics and the results are fascinating. McDougall’s report, titled Personalisation in Beauty, found 68 percent of Italian consumers showed interest in making a customized beauty product in-store or online while 78 percent of Italian consumers have interest in taking a personality test to identify their beauty needs.
Not surprisingly, technology comes into play when mentioning bespoke beauty. Fifty-eight percent of Spanish consumers report being interested in 3D printing services to create personalized products or packaging. Virtual options to “try on” a product (like makeup) before buying have already gained popularity, while apps that help make product or application suggestions based on individual data or previous purchases continue to grow.
Fem Care Appeal
Several factors have contributed to intimate care, or “fem care,” market growth, including the rise in unabashed female entrepreneurs and the self-loving customer base of millennial and Generation Z exposed to social movements like #MeToo. Feminine hygiene and sexual wellness products are no longer taboo, and the beauty industry is taking note. Recent reports by Grand View Research show the global feminine intimate care market size was valued at $1.1 billion in 2018 with a forecasted compound annual growth of 3.4 percent through 2025.
The number of sexual wellness and women’s health products on display at the Indie Beauty Expo has tripled each year from 2018, with increased interest from attendees. These products included a range of lubricants and vibrators, intimate skincare regimes and products to aid in menstruation like organic sanitary aids and menstrual cups. Below-the belt-spa treatments have gained popularity in recent years too, including vagina steaming and the “vanicure.” Avonda Nelson Urben, founder of the intimate care line The Perfect V, developed the vanicure, a service that includes cleansing and exfoliating of the hips, inner thighs, lower stomach and pubic regions.