Georgia Nelson How to make the market work for you.
It’s no secret that the pandemic saw a huge surge in beauty products and tools. From perfecting skincare routines to discovering face masks and microcurrent devices, many beauty consumers took their beauty habits to the next level. And it seems the demand is still on the rise.
A recent survey conducted by Fact.MR predicts that the premium beauty and personal care products market is set to rise at a compound annual growth rate (CAGR) of 6 per cent over the next decade, reaching a whopping US$100 billion by 2031.
Premium beauty and personal care products for women are predicted to account for majority of sales in the industry, but as awareness and consciousness of skin and personal care for men rises, so too will the demand for products.
The survey found that as awareness around skincare and cosmetics becomes more mainstream, the demand for premium beauty and personal care products will also increase. It also suggests that celebrities and influencers (think the Kar-Jenner family, Emily Ratajkowski and the Hadid sisters) have had a major impact on this increase, influencing and redefining beauty standards and creating hype around luxury cosmeceutical and beauty products.
Other factors found to influence the increasing demand for luxury beauty include more disposable income, unconventional product launches, and innovative marketing strategies (we can all learn a thing or two from the likes of Glossier and Dr Dennis Gross).
“Increasing disposable income coupled with rising awareness regarding personal care is expected to majorly drive sales of premium beauty and personal care products.”
– FAct.MR senior research analyst
So what does this mean for spa and clinic owners?
Well, more demand and bigger budgets have been met with more specifically formulated products in every consumer segment, especially when it comes to cosmeceuticals. Consumers are now able to target specific skin concerns and are willing to pay a premium price for a more curated skincare range. Clinics are able to tap into this by expanding cosmeceutical and luxury product offerings, from serums to SPF.
Interestingly, a major category set to dominate premium beauty sales is sun care. With UV now positioned as a major influence on premature ageing among a variety of other skin and health problems, sun protection routines have become an essential step in everyone’s morning routine and aren’t going away anytime soon. The Fact.MR report also notes that the demand for premium, low-harm, high-SPF products is expected to continue to rise substantially over the next decade.
Now may also be the perfect time to delve more into premium beauty and cosmeceutical products for men as the male aesthetics market grows.
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