11 October 2022
Author: The Future Laboratory
Over the next few years, the beauty industry will undergo transformation as brands respond to a backdrop of global uncertainty, consumers embrace new mindsets and disruptors push the needle of the sector forward.
Within the beauty industry, myriad social, economic and cultural factors are combining to cause tensions but also to present opportunities for innovation. ‘At present, we have a convergence of hyper-savvy, hyper- knowledgeable consumers, confident about beauty purchases but also wary of economic pressures,’ says Marcia Kilgore, founder of DTC beauty buyers club Beauty Pie. ‘It’s a perfect storm, creating challenges that future-facing brands must strive to meet.’
These converging shifts are leading to the rise of the ‘Question Everything’ economy, as beauty brands are freshly tasked with catering to highly informed consumer expectations across every tenet of product and engagement offerings.
To understand how the beauty industry will transform over the next few years, we must first explore the influential social, cultural and economic shifts happening today that are shaping the lives of beauty consumers.
How will brands find the right balance of logic and magic?
: Doubling Down On Quality In A Time Of Inflation - A growing group are doubling down on high-quality beauty and its relative affordability to provide respite at a time of crisis.
: Discernment Mindsets - Trust fatigue and increased access to information have heightened consumer savviness and discernment, transforming expectations around beauty brands, product efficacy, sustainability claims and approaches to luxury.
: Community Culture - The pandemic and influencer saturation have accelerated the growth of community-led beauty, as consumers seek authenticity and emotional engagement with brands
Discover our Accredited Beauty macrotrend – a look at how as consumers seek proof points on product quality, efficacy and sustainability, scientific evidence will drive the healthification of the beauty industry.
By 2025, the three driving forces of Inflated Industry, Discernment Mindsets and Community Culture will have radically transformed the beauty industry.
Future-facing beauty brands will embrace innovation as they seek to deliver meaningful beauty products, services and experiences to customers who need, demand and expect more than ever – and those that don’t will be left behind.
In the report, we break this down into key macrotrends including:
: Beautility Rising - Consumers will seek to derive value and personal transformation from every touchpoint, as a once- siloed sector presents a holistic definition of beauty and health intertwined.
: Beauty Recoded - Future-facing brands are ripping up the beauty business rule book to deliver meaningful beauty for all, embracing new, disruptive business models that are transforming the beauty landscape.
: The Fairness Equation - By 2025, fairness will be solidified in the beauty industry lexicon – welcoming a new era of openness, honesty and accountability around everything from pricing and product ingredients to supply chains and sustainability.
This is just a snippet of the Beauty Futures 2025 report. Click below to download the full report PDF.
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