In the dynamic beauty industry, meeting consumer demands has become increasingly crucial, especially in the wake of the COVID-19 pandemic. Today, NielsenIQ (NIQ) has released its Global Beauty Innovation Report, utilizing the NIQ BASES innovation measurement tool to offer a detailed view of beauty industry trends and innovations across 14 markets.
According to the report, personal care brands embracing innovation in 2023 are 2.5 times more likely to experience overall revenue growth compared to those with stagnant or declining innovation. Successful innovations attract new shoppers, create new usage occasions, justify price premiums, and help maintain brand awareness. Brands with strong products see an average 30% increase in volume in their first year compared to competitors, and effective marketing can boost ad sales by 20%, highlighting the importance of both product quality and impactful promotion.
Claire Marty, Vice President of Global Client Development, notes: “Despite consumer spending caution, beauty remains a priority, with 80% of consumers intending to maintain or increase their spending. The beauty industry continues to thrive, with double-digit growth rates and expected expansion of $300 billion over the next decade.”
Key trends accelerating innovation in the beauty industry include:
- Clean and Sustainable: There is a rising demand for clean and sustainable products, focusing on ethical sourcing and eco-friendly packaging. In South Korea, clean beauty has become a lifestyle choice, emphasizing sustainable practices.
- Ingredient Focus: Consumers globally are prioritizing products based on ingredient lists, valuing transparency. In the UK, effectiveness is favored over brand names.
- Trusted Advisors: Influencers, celebrities, and dermatologists shape beauty choices on social media. In China, a small percentage of opinion leaders drive the majority of sales.
- Personalization and Inclusivity: Brands offering personalized experiences, such as tailored hair and skin quizzes, are gaining traction. In Brazil, Afro-consumption is a key topic, with a preference for natural hair products.
- Wellness-Focused: There is a growing demand for products that enhance physical, mental, and emotional health. In France, the cosmetics industry is using neuroscience to address both body and mind, blending luxury with wellness.
- Convenience and Accessibility: The popularity of direct-to-consumer (DTC) and at-home beauty treatments surged during the pandemic and continues to rise, with innovations like electrical and muscle stimulation devices gaining traction.
- Luxury for All: The democratization of luxury is evident as high-quality products become more affordable. Saudi consumers value premium ingredients and are willing to invest in top-notch beauty and personal care.
The report highlights that one-third of new launches fail due to insufficient initial support, emphasizing the need for a strong concept coupled with robust product backing.
For more insights on beauty trends, download the NIQ Global Beauty Report and join the Beauty Inner Circle for exclusive updates. NIQ also offers detailed consumer insights through its SpendZ Report and other market analysis.
About NIQ
NielsenIQ (NIQ) is a global leader in business intelligence, providing comprehensive insights into consumer shopping behaviors and growth opportunities. After merging with GfK in 2023, NIQ now operates in over 95 countries, covering 97% of global GDP. For more information, visit www.niq.com.
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