Gold Mining in the $445 Billion Global Beauty Industry
With a steady and considerable increase in disposable income over the past decade, improvement in the lifestyles of individuals drives the demand and growth of the beauty industry on a global level.
In fact, Euromonitor International’s 2017 edition reveals a strong beauty and personal care industry in 2016 with a respectable 5% growth, while BPC forecasts points to an increasingly premium future over 2016-2021 with a CAGR of 3.6%. The beauty business is blooming like a newly-developed gold mine in today’s rising GDP per capital environment.
In an era when the beauty industry at the global level is experiencing exceptional growth, beauty companies are adapting changes and implementing emerging technology to both operate and differentiate marketing strategies and to target potential clientele.
The billion-dollar natural beauty movement, for example, has become a thriving changing sector of the industry in recent years as a growing number of consumers rejecting chemical-filled cosmetics for pricey, plant-based alternatives.
The ever increasing demand for natural cosmetic products among customers also reflect the crave for innovation and variation of cosmetic companies as the growth of independent brands were up by 42.7% in 2016 while traditional makeup was down 1.3%.
The striking expansion in cosmetics can also be attributed to the constant flow of information and opinion from not only beauty bloggers or celebrities, but also from friends and friends of friends and an entire universe of strangers. The concept of enhancing one’s physical features leads consumers to become more conscious of cosmetic usage in their daily lives.
With millennials outperforming baby boomers’ devotion in cosmetic sales, the beauty industry is now approaching and targeting the tastes and needs of Generation Z to snatch up the loyalty of younger buyers to build legacy beauty brands.