The new trends in the premium cosmetics industry are evolving the recipe for success as brands and consumers switch roles. While cosmetics companies see digital e-commerce and digitally-enhanced in-store and virtual try-on apps as the way of the future, a substantial percentage of beauty customers said they wouldn't buy any beauty product that they would have tried just virtually. They want to have real-world, hands-on experience of new products before they press the button.
This need gives the physical retail brands the edge to introduce new products. Consumers, mostly females, are on an experimental journey. They enjoy new products and finding new brands. This is part of a larger paradigm shift with younger consumers rejecting their parents' favorite existing brands and opting for artisanal, local, natural products in all categories of consumers. The need to always be 'Instagrammable' also helps.
What are premium cosmetics?
Premiumization, in essence, refers to the capability and willingness to spend on exclusive. Premium cosmetics are elegant and futuristic brand products that reflect each product’s technological and innovative prowess. From the name of the brand to its packaging, from the storytelling of the product to its launch, every aspect is sought after to convey elegance and modernity. The technologies used in premium cosmetics products are given dedicated focus to ensure maximum impact. The aesthetic appeal of cosmetics serves to create a premium experience for consumers.
The major types of premium cosmetics products available for the customers
Makeup
Diversity and inclusiveness drive makeup sales and brands are widening their product to include shades for every ethnicity variation. The focus on healthy skin and advanced tools and techniques continues, particularly among consumers who are obsessed with creating a flawless look for their profiles on social networking platforms. Consumers are becoming more concerned about their skin's state and are willing to invest more in premium quality face makeup. Luxury products recently launched are focused on developing a deluxe outer pack made from premium materials that consumers would want to keep and use again.
Skincare
Affluent consumers have an appetite for knowledge about skincare and are responsive to learning about and participating online with luxury brands. Premium skincare cosmetics brands have the opportunity to develop digital appeal and credibility by tapping into the global consumer demand for entertaining and educational content.
The high-class beauty and skincare industry are driven largely by rapidly vanishing trends. The ability to leverage rising, robust trends and comprehend the greater implications that drive them is vital for the growth of brands. Search data is a trustworthy information source that gives insight into healthy trends by looking directly at consumer interests and considerations.
Haircare
As Haircare witnesses increasing premiumization through a spike in the number of launches claiming to integrate novel formats and functions, prospects for premium hair care become an interesting subject for analysis. Collaboration with hair appliances brands provides scope for premium hair care growth. A potential way forward is to combine the hair care devices with hair care products, comparable to the trends in skincare.
Another field of opportunity would be to replace the impact of hair straighteners which are now common household products but which are harmful to hair with heat from these appliances. There are various hair products in the hair straightening segment, but these products only complement the effect rather than actually straightening the hair. However, more advancement in the formulation could help to closely recreate the impact of hair straighteners and therefore have the potential for growth in the premium segment.
Why have premium cosmetics become a big thing lately?
An evolving trend towards a fashionable lifestyle is one of the main factors responsible for the growth of the luxury cosmetics industry. This is mainly due to an increase in consumer purchasing power coupled with a dedication to these products. At the same time, as the economy is looking to expand, income is rising and living standards are going up. There’s a passion for anything about fashion that’s becoming important to be part of the social circles and the hangouts.
Along with celebrities or A-listers, even the middle-class population wants to be on the same boat and aims to emulate the trend. They don’t want to be found wearing the same shoes, clothes, bags, or glasses, and make-up are no exception to this trend. The escalating geriatric population and the use of cosmetics by young people encourage domestic producers to provide low-cost ranges without compromising quality.
Here are the top 3 trends that keep the premium cosmetics market up and going:
Men’s grooming trends
Men's beauty segment is often identified as a high-growth beauty niche, as image-conscious male consumers are increasingly curious about categories of beauty and grooming products. Chanel debuted in South Korea in September 2018 with their men's makeup line, Boy de Chanel. The collection was launched globally in November 2018 on Chanel's e-commerce platforms and debuts in Chanel boutiques, starting in January 2019. Now that the men's makeup domain has become an influential legacy brand, the rest of the industry is likely to be following suit. And that is a step towards a premium cosmetics industry that is more inclusive.
The rising industry of premium skincare cosmetics
The skincare industry has shown a moderate rise in retail value, with premium products recording above-average growth. Premium face masks, premium basic moisturizers, as well as premium anti-agers all experienced strong growth from small bases as a number of women started to treat themselves to products of higher quality skincare that give added value. Rapid-growing niche brands ascended the rankings leading to several large multinationals purchasing them.
The desire of consumers for high-effectiveness skincare has helped the specialized brands to flourish in a crowded space as they are seen as experts in their field. The world of skincare is indeed about to become very personal. New digital technologies and advances in science mark the advent of an era of hyper-personalization. This fundamental change is reshaping the industry and how cosmetic products are designed: ingredients can be chosen to fit the specific type of skin, local environment, genetic heritage, or individual needs or desires.
Virtual Reality and Augmented Reality makeup tutorials
Beauty vlogging is not new, but premium cosmetics brands have rapidly expanded their involvement with YouTube personalities with their make-up tutorials and how-to videos attracting massive audiences. Instagram is also beginning to emerge as a social network of choice for affluent beauty shoppers with its shoppable elements, bringing the point-of-sale right into the point-of-discovery.
Digitization has become a key driver with a direct effect on the premium cosmetics market's growth rate. Increased internet and social media penetration have now become major mediums for enhancing brand awareness. In addition, the influx of information on cosmetics online, with professional services, also pushes up the demand for personalization, for product development to meet needs and requirements and lifestyle.
Keeping the trends aside, here’s what the industry shapers are up to:
In May 2019, Coty launched Alessandro Michele's Gucci Makeup to extend its market outreach. This makeup features three new ranges of Gucci Make-up lipsticks with different formulations.
In March of 2019, P&G launched a Waterless hair care collection, a new haircare brand. The product range includes ultra-lightweight Foam Dry Shampoo, residue-free Dry Shampoo Spray, Dry Conditioner range and alcohol-free Hair Refresher collection. The alcohol-free hair refresher provides instant odor-detox, anti-freeze, and static control benefits.
In September 2019, Estee Lauder introduced Beautiful Belle Love, a new range of fragrances for the modern brides. Beautiful Belle Love recreates the oriental fragrance with a special oriental gourmand that incorporates ingredients from the four corners of the world.
Summing up,
The premium cosmetics market is particularly anti-cyclical, so much so that it originates from a famous economic phenomenon, the lipstick effect. This theory, which is only partly verified, alleges that in an economic downturn customers will still buy premium items, privileging smaller items such as lipsticks, however.
Free Valuable Insights: Global Premium Cosmetics Market to reach a market size of $194 billion by 2025
Many studies have demonstrated a statistically significant correlation for the broader category of beauty. In recent years, however, growth in the cosmetics industry has exploded, in a trend that ties many to a wider generational pattern of attention to physical well-being. Millennials are often cited as the principal drivers behind the beauty segment's meteoric growth.
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