The Nielsen Company recently released ‘The Future of Beauty” report. This synopsis highlights some of the key findings.
1. BEAUTY IS GOING NATURAL
Today’s transparency-minded consumers are searching for authentic brands and products, and each will likely seek different natural appeals on his or her path toward a more natural beauty regimen.
In 2017, products featuring natural claims represented 3.1% of the U.S. personal care market, generating $1.3 billion in annual sales last year. That’s up from 2.1% of the market in 2013 (representing sales of $230 million). Comparatively, beauty has been slower to go natural (natural products currently make up 1.4% of the market), but sales are growing quicker than in personal care.
Paraben-Free Is The Way To Be
Over the last two years, facial cosmetics have gone from just 43% paraben-free to 54%. Overall, just 35% of beauty products contain parabens, down nearly 7 points over the last two years.
2. BEAUTY IS PERSONAL
Consumers have always wanted their beauty products to reflect their individuality. Over the last five years, the number of unique facial cosmetic colors available on shelves has grown 22%. With 679 unique colors of foundation from which to choose, consumers are able to self-select their own version of beauty. And in the process, brands that haven’t adapted have lost share.
A more targeted, personalized and ultimately relevant method of building brand loyalty is emerging as indie brands drive innovation in the market. The path toward building a relevant brand is being authentically relevant to individuals, at scale.
3. BEAUTY IS CONNECTED
In 2017, Americans spent over $12 billion on beauty and personal care products online over the last year (30% of dollars flowing through online channels).
Nielsen’s research shows that more than one-third of ‘Google Home’ owners have used their devices to buy a personal care item, followed closely by 29% of Amazon Echo owners.
WHAT’S NEXT FOR BEAUTY?
Old playbooks no longer work. Consumers are as focused on the transparency of brands and their practices as well as what goes into the products they make. The beauty brands that will be successful, will be authentic and true, flexible enough to be relevant to a wider array of consumers, and harness the digital tools and platforms to achieve this at scale.
For additional insights and the full article, download Nielsen’s Future of Beauty report.