The beauty market in 2024 shows strong growth and innovation. Global revenue is expected to reach $650.10 billion. Experts predict an annual growth rate of 3.40% from 2024 to 2029 (Source).
Key Insights
Skincare continues to lead the beauty sector, contributing 42% of the industry’s revenue. By 2025, it is projected to generate $177 billion (Source).
E-commerce plays a vital role, accounting for 41% of beauty sales in the first half of 2024 (Source).
Trends Driving the Industry
- Artificial Intelligence (AI): AI in beauty is growing and may exceed $13 billion by 2030. Autonomous beauty tools, such as nail polish robots, are gaining traction (Source).
- Sustainable Products: Consumers prefer clean, natural, and organic products. The natural cosmetics market is expected to hit $59 billion by 2031 (Source).
- Personalization: Personalized beauty products and inclusive ranges are attracting diverse customers (Source).
- Social Media Influence: Platforms like TikTok continue to set beauty trends with viral content and product recommendations (Source).
Consumer Behavior
Gen Z influences the beauty industry with a focus on ingredient transparency and sensorial experiences (Source).
Minimalist beauty routines are on the rise. Multifunctional products and simplified skincare are becoming popular (Source).
Industry Movements
- Mergers and Acquisitions: L’Oréal acquired South Korean skincare brand Dr.G to expand into innovative skincare markets (Source).
- Product Innovation: Semi-permanent makeup like cheek blush tattoos is gaining popularity among low-maintenance beauty enthusiasts (Source).
Tips to Convert New Customers from Discovery to Purchase Today
The next two years will be crucial for beauty brands to build direct-to-consumer businesses with a comprehensive digital strategy.
Gone are the days of dependency on brick-and-mortar.
The beauty sector is particularly poised to maximize the potential of social commerce which is required to remain relevant and grow market share.
Millennials and GenZ prefer to discover beauty products online, which is why beauty brands must prioritize these new channels to have the next wave of growth by converting social users into social shoppers.
Tiktok is a great platform for discovery, especially now that it offers tools that enable brands to manage marketing campaigns from their existing Shopify dashboards. Pinterest also enables influencers to add shopping links directly to its Shopify partnership that allows users to test different shades of makeup.
Amazon Live is re-energizing livestreaming shows that give brands and influencers the ability to tag promotions, interact with users and earn commission on sales.
Most beauty start-ups boom because of short video makeup guides. Because of this, even the highly successful beauty brands joined the trend and seemingly increased sales for the past year.
Building a strong brand that leverages all digital platforms has never been more important for finding, acquiring, and building a brand’s tribe.
Conclusion
In 2024, the beauty market thrives on growth, technology, and consumer preferences. Brands that focus on sustainability, personalization, and innovation are well-positioned to succeed.
Who are your favorite beauty brands?
