New NielsenIQ (NIQ) Global Beauty Innovation Report Reveals Future Trends in Beauty

In the rapidly changing beauty industry, meeting consumers’ evolving needs has become crucial, especially after the disruptions caused by the COVID-19 pandemic. NielsenIQ (NIQ) has released its Global Beauty Innovation Report, utilizing the NIQ BASES innovation measurement tool to offer an in-depth look at current innovations and future trends in the beauty sector across 14 global markets.

Brands in the personal care sector that have embraced innovation in 2023 are 2.5 times more likely to experience overall sales growth compared to those with stagnant or declining innovation revenue. Innovative products not only attract new customers but also create new usage opportunities, justify higher prices, and help maintain brand visibility.

Brands that deliver standout products can see an average 30% increase in volume in their first year compared to their less successful peers. Effective marketing and creative execution can boost ad sales by 20%, highlighting the importance of not just having a great product but also executing marketing strategies that connect with the target audience.

Claire Marty, Vice President of Global Client Development, notes, “Even with more cautious consumer spending, beauty remains a priority for many, with 80% of consumers intending to either maintain or increase their spending in this category. The global beauty industry continues to expand, with sales maintaining double-digit growth rates across all regions and expected to increase by $300 billion over the next decade.”

Key trends driving innovation in the beauty industry include:

  • Clean and Sustainable: There is a growing demand for clean and sustainable products, focusing on ethical sourcing, eco-friendly packaging, and reducing carbon footprints. In South Korea, clean beauty has become a lifestyle, with manufacturers emphasizing eco-friendly packaging and sustainable practices.
  • Ingredient Focus: Consumers globally are prioritizing products based on their ingredient lists. They are interested in both what is included and what is excluded. In the UK, consumers value effectiveness and results over brand names.
  • Trusted Advisors: Celebrities, dermatologists, and influencers are increasingly influencing beauty decisions via social media. In China, over 20 million Key Opinion Leaders (KOLs) exist, with 80% of sales driven by just 7% of these influencers.
  • Personalization and Inclusivity: There is a growing preference for brands that offer personalized experiences, such as quizzes for hair and skin types. In Brazil, Afro-fashion is a key topic of personalization and inclusivity, with women moving away from hair straightening products.
  • Wellness Focus: As wellness becomes a priority, there is rising demand for products that support physical, mental, and emotional health. In France, the cosmetics industry is integrating neuroscience to address both body and mind. Luxury brands are developing products that enhance both skin appearance and emotional well-being.
  • Convenience and Accessibility: The popularity of direct-to-consumer (DTC) products and at-home beauty treatments, which surged during the COVID-19 pandemic, continues to grow. This includes advancements in electrical cosmetics and muscle stimulation devices.
  • Luxury for All: There is a trend towards making high-quality products more accessible. The democratization of luxury is driven by innovative brands offering exceptional products at more affordable prices. For instance, Saudi consumers value high-quality ingredients and are willing to pay a premium for personal and beauty care.

Successful product launches in the beauty industry require a balance between compelling ideas and strong execution, as one-third of new launches fail due to inadequate support in their first year.

For further insights into beauty trends, download the NIQ Global Beauty Innovation Report and join the Beauty Inner Circle for exclusive tips. NIQ also offers unique insights into global consumer trends, including the latest SpendZ Report on Gen Z spending habits and the Consumer Outlook Report on trends, behaviors, and sentiments.

About NIQ
NielsenIQ (NIQ) is a leading global provider of consumer insights, delivering comprehensive understanding of shopping behaviors and uncovering growth opportunities. Following its merger with GfK in 2023, NIQ now operates in over 95 countries, covering 97% of global GDP. NIQ provides a holistic view of retail and consumer insights through advanced analytics and cutting-edge platforms, delivering the Full View™.

For more information, visit www.niq.com.

The original text of this report is the official version. Translations are provided as a supplementary service, and the original language text is the only legally binding version.

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