- Personal Care Brands embracing innovation in 2023 are 2.5 times more likely to see sales growth.
- 20% of 2023 innovation launches in Europe were in skin and hair care categories.
- Effective activation leads to 20% lift in ad-driven sales.
CHICAGO–(BUSINESS WIRE)–Sep. 12, 2024
In the ever-evolving beauty industry, understanding and fulfilling meaningful consumer needs has become paramount, especially following significant shifts post COVID-19. NIQ today released its Global Beauty Innovation Report, powered by NIQ BASES Innovation Measurement providing a comprehensive view of the state of innovation and future trends in the beauty industry across 14 markets.
Personal Care Brands embracing innovation in 2023 are 2.5 times more likely to see overall sales growth compared to those with stagnant or declining innovation sales. Strong innovations attract new buyers, create new usage occasions, justify price premiums, and keep brands top of mind.
Brands delivering strong products can see a significant upside, with an average Year 1 volume increase of 30% compared to their less successful counterparts. Effective activation leads to a 20% lift in ad-driven sales, especially when creative elements are optimized. This underscores the importance of having both a great product and ensuring that the marketing and promotional efforts are well-executed and resonate with the target audience.
Claire Marty, Vice President, Global Client Development, commented, “Despite increasing caution in consumer spending, consumers are less willing to cut back on their beauty expenditures compared to other FMCG products, with 80% indicating they intend to maintain or increase their spending in this area. The beauty industry's global popularity continues to rise, with industry sales maintaining a double-digit growth rate across all regions and is expected to bring an increase in scale of $300 billion over the next decade.”
Breakthrough Trends accelerating innovation in Beauty Industry:
- Clean and Sustainable: The trend towards clean and sustainable products is growing in the CPG category, focusing on ethical sourcing, eco-friendly packaging, and reducing carbon footprints. In South Korea clean beauty has become a lifestyle choice with manufacturers focusing on eco-friendly packaging and sustainable production practices.
- Ingredient Focus: Global consumers are shopping with an ‘ingredients first’ mindset, prioritizing products based on their ingredient lists. Consumers are interested both in which ingredients are included and also in which are not. UK consumers prioritize results and efficacy over brand names.
- Trusted Advisor: Celebrities, dermatologists, and influencers are shaping beauty decisions through social media. In China, the number of Key Opinion Leaders (KOLs) exceeds 20 million and is growing, while 80% of actual sales come from merely 7% of KOLs.
- Personalization and Inclusivity: Consumers increasingly prefer brands that address individual needs, leading to more tailored experiences like hair and skin quizzes. Afroconsumption is the hottest personalization and inclusivity topic in Brazil, with women opting out of hair straightening products.
- Wellness Focused: Consumers are prioritizing their well-being, leading to a demand for products that support physical, mental, and emotional health. The cosmetics industry in France is leveraging on neuroscience targeting both body and mind. Luxury brands are creating products improving both skin appearance and emotional well-being.
- Convenience and Accessibility: Direct–to-consumer (DTC) products and at-home beauty treatments surged in popularity during COVID-19. This trend continues to grow as electric cosmetics and muscle stimulation devices have surged in popularity.
Luxury for all: This trend in beauty reflects the growing availability of high-quality products at affordable prices. Democratization of luxury is driven by innovative brands offering exceptional products rivaling high-end counterparts. Consumers in Saudi Arabia value high-quality ingredients and are willing to pay a premium particularly on Personal and Beauty care. Successful activation in the beauty industry hinges on the synergy between a compelling idea and a robust product with one third of new launches faltering due to lack sufficient support during their first year.
For more insights on Beauty Trends, download a copy of the NIQ Global Beauty Innovation Report and join the Beauty inner Circle to gain premium insights. NIQ also regularly provides unique, proprietary insights across global consumer trends, including its latest SpendZ report, a comprehensive look at the spending trends of Gen Z, Consumer Outlook reports analyzing trends, behavior and sentiment.
About NIQ
NielsenIQ (NIQ) is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together the two industry leaders with unparalleled global reach. Today NIQ has operations in more than 95 countries covering 97% of GDP. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™.
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