Customized skincare to be $62 billion market within a decade as demand for personalization grows

Skincare has been growing ever more specialized in recent years, with increasingly well-informed consumers demanding the best active ingredients. The newest frontier is customization.

A new report from Future Market Insights has valued the global customized skincare market at $29.3 billion. By 2034, it forecasts that this figure will have increased to $62.4 billion, at a 7.8% CAGR.

“Custom skincare” searches are up 150% in the last 5 years.

The Indian market is expected to lead this growth, with a CAGR of 10.7% over the next decade. Customized skincare in Australia is also projected to outpace global market growth, at a CAGR of 8.2%.

Growth in the United States and United Kingdom is forecast to be a little slower, but the customized skincare market is still expected to grow at a CAGR of 4.5% and 4.9% respectively.

Changing consumer expectations, advances in technology like AI, and a wider cross-industry demand for customization and personalization are all driving this trend. Let’s explore in more detail.

Increasing specialization of skincare

According to the American Academy of Dermatology, there are five primary types of skin: oily, dry, normal, combination and sensitive.

Searches for “skin type” are up 91% in the last 5 years.

For a long time now, there has been growing understanding from both consumers and manufacturers that different skin types have different needs. This has spawned increasingly specialized products.

For example, the Beauty Pie Trends Report 2025 has picked out “waterless skincare” as a major upcoming trend. Water tends to have a drying effect, so products that cut it out entirely appeal to those whose skin is already prone to dryness.

Additionally, waterless products place all the emphasis on active ingredients. These are many and varied — as one example, tranexamic acid is currently showing strong search growth.

Searches for “tranexamic acid moisturizer” are up 150% in the last 2 years.

Another trend listed in Beauty Pie’s report, tranexamic acid, targets dark spots and discoloration. Over a period of 8-12 weeks, daily use is said to restore a natural, even look.

The https://explodingtopics.com/pro database also shows major search growth for:

• Niacinamide body lotion for locking in moisture
• Glycolic acid exfoliating toner for gently removing dead skin cells
• Bakuchiol eye cream for reducing wrinkles around the eyes

Keeping on top of the latest trending active ingredients is a great way for skincare brands and creators to rank highly on Google and produce successful content. Exploding Topics is a highly useful tool in this regard, especially when combined with the Semrush toolkit.

In one case study, an SEO agency used the Semrush Keyword Magic Tool to generate nearly 25,000 relevant skincare keywords. That helped the client, L'Oréal Turkey, receive 1 million organic impressions in just 10 months.

“SkinTok” - The Role of TikTok

Sure enough, there is a thriving skincare creator ecosystem. “SkinTok” has attracted 450 million posts on TikTok.

Influencers are further educating consumers on skin types, active ingredients, and more. There are more than 500,000 posts under the “niacinamide” hashtag alone.

These creators are also typically selling a product.

In the US, in 2024, 84% of Gen Z consumers have purchased beauty products based on influencer recommendations. 61% do so at least “occasionally” (as opposed to rarely or never).

The majority of Gen Z consumers sometimes listen to influencer beauty recommendations.

Gen Alpha is also increasingly engaged. 66% of beauty users aged 12-14 who use social media say that it helps them to discover new brands and products.

And 50% of consumers aged 18-24 said they started thinking about anti-aging products while still in their teens.

On TikTok, these consumers are increasingly not even having to leave the platform to make their purchases. The explosion of TikTok Shop and social commerce has created a highly direct sales funnel.

According to e-commerce statistics, 81% of US TikTok Shop sales are in the beauty and health categories. While the impact of the impending TikTok ban could be significant, the effect on consumer awareness of specialized skincare has already happened.

Customized skincare arrives

The average skincare consumer is more informed now than a decade ago. But the rapid specialization of the industry has also left some feeling overwhelmed.

In a survey last year, 72% of consumers said they needed clarification on some of the scientific terminology being used in the beauty industry. 69% said they had bought a health or beauty product without understanding the label.

Even as skincare users seek to keep up with the latest ingredients, the one thing they really know is what effect they want from a product. They understand their own skin needs.

The result is a growing demand for skin consultations, where experts can match consumer needs to the wealth of available active ingredients.

“Skin consultation” searches are up 76% in the last 5 years.

Especially since the pandemic, consumers are used to being able to access healthcare professionals remotely. There’s Lifestance for therapy, Sesame for general appointments, and even a growing interest in vet telehealth.

It’s no surprise that people expect a similar service when it comes to skin health. Clinikally is one company seeking to meet that demand.

Searches for “Clinkally” have increased by 134% in the last 2 years.

The startup is based in India, which is among the leading growth markets for customized skincare. It offers online access to dermatologists.

Products that are recommended by the dermatologist are delivered directly to the consumer. 98% of customers report positive results after the first Google Meet consult.

As well as clinical recommendations like these, we are also starting to see true customized skincare: unique formulations tailored to individual consumers.

After a free consultation, subscription-based service Skin + Me handpicks appropriate ingredients. They then send out the customized skincare products monthly.

Skin + Me claims to have multiple advantages over “generic” skincare.

The startup offers ongoing check-ins. If a user’s skincare needs change, they will alter the formulation of the products for free.

Dermatica provides a similar service.

“Dermatica” searches are up by 324% in the last 5 years.

Users share their treatment goals and upload some selfies. This information is then reviewed by a dermatology team, who devise a personalized formula.

SimilarWeb estimates Dermatica’s annual revenue at $10-15 million.

AI Skincare

Across numerous industries, AI is making it easier than ever to offer personalization. It’s no different in skincare.

The next logical step from skin consultations? AI skin consultations.

Searches for “AI skincare” are up by 300% in the last 2 years.

Brands have long been offering virtual consultations of one kind or another. Cerave’s Skincare Finder Quiz is a prime example of a simple but effective multiple-choice questionnaire.

Consumers specify their primary concerns and goals from a list. The quiz ultimately returns a customized routine.

Cerave users can answer a few quick multiple-choice questions, and get a personalized skincare routine.

As AI gets more powerful, the possibilities improve. Brands are now offering AI skin analysis, using face scanning technology to return skincare recommendations.

Haut.AI provides its AI skin-scanning technology to various skincare and beauty brands including Ulta Beauty.

“AI skin analysis” searches are up 6400% in 2 years.

Its AI has been trained on more than 3 million data points. It has a reported 98% accuracy rate.

And brands using Haut.AI technology have seen a 62% growth in customer conversion and 34% increase in order value. Haut itself is profitable, with revenue figures in the “several millions”.

Lots of major brands are adopting similar technology. Lancome E-Skin Expert is built on a database of 40,000 skin pictures, and analyzes 9 clinical skin parameters.

For instance, I now know that “radiance” is what I should be targeting with my skincare routine.

The Lancome E-Skin Expert assesses a variety of skin markers before returning product recommendations.

Use of tools like these is hugely popular with Gen Z. In the US, 57.7% of consumers who are engaged with digital beauty solutions are under 34, highlighting the huge potential for growth in the market.

A particularly nascent area is the use of AI to not only offer product recommendations, but to create brand new customized skincare products — effectively a combination of the Dermatica and Haut.AI innovations.

An early player in this space is SkinCeuticals, a L’Oreal brand. Its “Custom D.O.S.E” product uses a proprietary algorithm to help devise personalized skincare serums.

SkinCeuticals is harnessing technology to offer custom skincare products.

Currently, customers need to visit select professional locations to get a scan from

the SkinCeuticals diagnostic tool, which is guided by a skincare professional. From there, as the name suggests, a custom dose is formulated.

Clinical studies have shown a 42% improvement in skin clarity among Custom D.O.S.E users, a 34% improvement in skin texture and an 18% improvement in radiance.

The dawn of personalized everything

It’s worth examining where customized skincare fits into the bigger picture. Supercharged by the growth of AI, there has been a surge in hyper personalization.

”Hyper personalization” searches are up 161% in the last 5 years.

Across all sectors, 81% of consumers prefer companies that offer a personalized experience.

When working with accurate data, AI can generate a detailed customer profile in seconds, optimizing communications, offers, and tone accordingly. It unlocks a far more personalized experience.

The Segment State of Personalization Report 2024 found that 73% of business leaders think AI adoption will fundamentally change personalization and marketing strategies. 89% of decision-makers consider personalization invaluable to business success over the next 3 years.

And with the growth of AI analytics, this won’t just be “reactive” personalization. 86% of respondents anticipate a significant shift to “predictive” personalization, harnessing the power of AI to meet consumer preferences based on more than just their previous purchases.

Much of this is about personalizing the sales experience. But AI is also helping to create more bespoke products.

To use the example of skincare: this isn’t just a product for people like you, it’s a product made especially for you.

AI tutors customize the content being offered based on the assessed needs of the individual user.

“AI tutor” searches are up 1229% in the last 2 years.

One tutor, Squirrel AI, uses a Large Adaptive Model that has been trained on data from more than 24 million students and 10 billion learning behaviors. Its courses are divided into thousands of “knowledge points”, and the AI is designed to spot gaps in students’ understanding.

In another industry altogether, EightSleep uses “Autopilot” AI in its intelligent sleeping pod, which gradually learns more about the user and adjusts accordingly.

EightSleep pods use “autopilot” technology which adapts to the individual user.

The pod alters factors like temperature and tilt. It has been shown to reduce snoring by up to 45%.

Dominate the skincare market by keeping on top of trends

Personalization is happening everywhere. But the skincare market is home to some of the most exciting developments.

As the new report from Future Market Insights shows, customized skincare is already a lucrative niche, and it is set to grow at a rapid rate. It has become a significant segment within the $189.5 billion global skincare market, and is projected to grow as a percentage of the overall industry over the next decade.

Ready to capitalize on the growth of the customized skincare market? With the industry forecast to be worth $62.4 billion by 2034, and growing at a 7.8% CAGR, there's never been a better time to strengthen your market position.

Discover how the Semrush toolkit can help you:

• Target the right keywords in a market where "custom skincare" searches have grown by 150% in 5 years
• Identify emerging active ingredient trends, like the 223% spike in "bakuchiol eye cream" searches we’ve seen over the past 2 years
• Reach the 84% of Gen Z consumers who purchase beauty products based on digital content
• Generate thousands of relevant keywords, just like the ones that helped L’Oréal Turkey achieve 1 million organic impressions in 10 months
• Stray on top of the latest changes in SEO

Join the brands successfully navigating the growth of customized skincare. Sign up for Semrush today.