6 Beauty Industry Trends for 2023-2026
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Until the pandemic hit, the global beauty market was surging.
Now, experts suggest that COVID’s impact on the industry could cause a revenue decline of up to 35%.
Historically, though, the beauty industry has been resilient.
After experiencing only a slight decline during the 2008 recession, personal care spending was back on its rapid growth trend by 2010.
And current market research projects that beauty and personal care spending will top $784.6 billion by 2027.
Here are the top trends impacting the beauty, cosmetics, and personal care industries in 2023 and beyond.
1. Beauty Brands Focus On Hyper-Personalization
Research shows that 80% of today’s consumers are more likely to make a purchase if the company offers a personalized experience.
Industry research shows that consumers increasingly demand personalized products.
More specifically relating to the beauty industry, 58% of shoppers say they are more likely to buy from a business that offers an online quiz to recommend specific beauty products for them.
And, 45% of respondents say they are more likely to purchase from a business that offers a virtual reality or AI experience that allows them to try out a product online.
Beauty brands are implementing these personalized experiences in high-tech ways.
Haircare company Prose invites customers to take a 25-question quiz and then analyzes over 80 factors to create custom formulas for shampoo, conditioner, and other hair care products.
The tech company Revieve has created several interactive modules as part of their Digital Health-Beauty-Wellness Platform.
Shot of Revieve's AR-based skin advisor.
They offer AI-powered recommendations to customers interested in skincare, makeup, sun protection, and nutrition.
The technology is already being used by No7, Ulta Beauty, and Schwan Cosmetics.
Beijing-based AI developer Megvii is widely known for its facial recognition program that’s part of China’s surveillance network.
In April 2020, they released a new application of their software: FaceStyle.
This AI system can identify facial features, analyze skin conditions and complexions, and simulate virtual makeup application for users.
2. At-Home Treatments are Here to Stay
When COVID-19 lockdowns went into place, consumers were forced to turn to beauty treatments they could do at home.
According to Nielsen, during the fifth week of the pandemic, sales of hair clippers increased 166% and sales of hair dyes rose 23%.
Market research company NPD Group reported that spending on nail care products went off the charts in March and April 2020, the early days of the pandemic.
And overall purchases of prestige nail products climbed 24% year-over-year.
NPD also reported that the sale of base coats and top coats surged 102% year-over-year.
Google search growth for "base coat" has increased by 184% over last 10 years.
Google search trends also revealed an emphasis on at-home beauty and personal care treatments.
Many of 2020’s top search terms were related to beauty and skincare treatments that people hadn't normally done at home.
The no.1 beauty search term was “how to cut men’s hair at home”, followed by number-three “how to color your hair at home”, and number-nine “how to trim your own hair.”
With the lingering effects of the pandemic expected to stick with us, experts suggest that the demand for at-home self-care treatments will remain high.
3. Women Demand Clean Beauty
According to the Environmental Working Group, the average person applies nine personal care products to their body daily.
In those nine products, there’s an average of 126 unique ingredients.
In 2023 and beyond, more and more women are questioning what exactly those chemicals are and what they mean for their bodies.
Searches for "clean beauty" are up 51% in 10 years.
A recent report from nosto said that 68% of people are looking for products described as “clean” and 59% of people are influenced by products that are described as “natural and organic”.
A global survey from 2020 showed that women are also seeking greater transparency from beauty brands - 61% thought that brands didn’t do enough to explain the “clean” or “green” labeling on their product packaging.
Nearly 70% of women looked for alternate sources, like a Google search, to determine if the ingredients were truly clean.
If beauty brands can handle this increasing pressure to truly create natural and organic products, experts say their revenue will reap the benefits.
The global market value for natural beauty and cosmetics is poised to grow more than $18 billion in the next five years.
Estimates show that the natural beauty market is set to see continued growth through 2027.
4. It’s All About the Eyes
As face masks became a key line of defense against COVID-19, sales of eye makeup have soared.
British retail giant John Lewis Partnership reports that mascara purchases have been up 58%, sales of eyebrow makeup have increased 34%, and eye makeup purchases have increased 19% over 2019.
Luxie Inc., a makeup brush company in San Jose, California, reported that sales of their eye makeup brushes have increased by 40% since the pandemic started.
Their lip brushes aren’t garnering any interest.
Reps from Luxie also say that the false eyelash trend, which was expected to end in 2020, has held strong.
This interest in all things related to eye makeup has been so profound that beauty experts say it’s knocking out the “lipstick index”.
First brought up in 2001, it’s an economic theory that suggests women reach for lipstick as an affordable pick-me-up in times of economic downturns.
It’s thought that those lipstick sales can sustain beauty brands through recessions.
But recessions during which everybody is wearing a mask?
It’s not happening. In late March and early April, Amazon's “lip care and color” sales in the US fell by 15% - the steepest decline of any retail segment.
The term #maskmakeup has around 75 million views on the social platform TikTok.
Mask makeup tutorial videos are huge on TikTok.
Many of the videos focus on eye shadow and “mask-proof” makeup that won’t transfer from the skin to the mask.
5. Growing Demand for Men's Beauty Products
Skincare and makeup for men is one of the fastest-growing trends in the beauty industry.
The market for men’s skincare products was worth $12.34 billion in 2021 and is forecasted to grow to $18.92 billion by 2027.
Searches for “men’s skincare” are up 103% over 10 years.
While searches for “moisturizer for men” have also increased over the last decade.
Searches for “moisturizer for men” are up 112% over the last 10 years.
Makeup for men has been gaining popularity, too.
The men’s segment of global beauty and fashion products has reportedly grown faster than the women’s segment for the last decade.
That explains why Chanel launched their first line of makeup for men in 2018. And why Estée Lauder’s Lab Series brand specifically targets men. Sephora also rolled out a line of men's products as well.
But according to The NPD Group, traditional cosmetic brands that target women have also seen large sales boosts by featuring men with their products.
The male beauty market is actually part of the “Korean Wave” phenomenon: South Korea’s cultural impact on the rest of the world.
Roughly 75% of South Korean men get some kind of beauty or grooming treatment every week.
Like women’s versions, men’s skincare and beauty products vary greatly in price point: from $3 supermarket lotion to $300 anti-aging serums from Tom Ford and Sisley Paris.
With plenty of room in between for DTC startups.
For example:
Stryx raised a $135k pre-seed round in 2019. The startup is known for its concealer and tinted moisturizer for men.
Stryx’s concealer tool.
War Paint makes makeup for men as well. The startup was launched in late 2018, sold 15,000 products in its first 6 months, and raised a $1.5 million seed round in 2020.
Ceylon’s target market is men of color. The startup makes skincare, haircare and grooming products. Its biggest direct competitor, beauty retailer Walker & Company, was acquired by Procter & Gamble in 2018.
Menaji and MMUK also make cosmetics for men, with signature products like Menaji’s “urban camouflage” concealer stick and MMUK’s kits that include clear mascara, lipstick and more.
Beardbrand’s focus is on beard oils, cleansers and grooming tools.
And while eCommerce giant Manscaped was originally a hair-trimmer brand, it also sells a range of skincare products for men.
6. Calls for More Diversity and Inclusion
As companies across the board have begun to address injustices throughout society, beauty brands are making moves, too.
Data shows that sales of multicultural beauty products are growing at a rate that’s double the conventional beauty market.
In fact, it’s estimated that black women spend 80% more on beauty products than their non-black counterparts.
One of the best-known multicultural makeup lines in Fenty Beauty.
Founded by musical superstar Rihanna in 2017, Fenty Beauty was named to Time’s list of The 25 Best Inventions of 2017.
The brand has continued to evolve and now features 50 shades to offer nearly every woman the chance to have her makeup match her complexion.
Searches for "Fenty Skin" spiked in August 2020. But remain relatively high with 212% growth in 5 years.
Since the release of Fenty Beauty, some beauty brands have come around to offering more inclusive makeup options, but many black women say it’s not nearly enough.
We are seeing small steps, though, as leaders work to close the funding gap that impacts black female entrepreneurs in the cosmetics industry. And create products that can be used by a wide variety of demographics.
Conclusion
That's it for our list of important beauty industry trends for 2023-2026.
Technology, COVID-19, and societal issues have impacted the beauty industry in a big way over the last few years. Whether that's a call for new products containing natural ingredients. Or a move towards ecommerce.
And we can expect more innovation and change in this space heading into 2023 and beyond.