The beauty industry experienced deep pain over the past year as it saw some big shifts.
The makeup category suffered losses, especially among teens, with Piper Jaffray reporting a 21% year-over-year decrease in spending among that group. It’s unclear whether teens are wearing less makeup or just spending their money on experiences at the expense of fashion and cosmetics. Whatever the reason, the markets weren’t kind to industry stalwarts Estée Lauder and L’Oréal, while retailer Ulta also saw a dip. It’s clear the $532 billion global beauty industry is undergoing changes as skincare gains more prominence.
Why did the industry decline in 2019? The lack of innovation in color cosmetics was a big contributing factor. Meanwhile, the rise of skincare, with its anti-aging claims, also impacted the potential growth of color cosmetics. A lot of retailers, especially Sephora and Ulta, depend on new brands or products for growth. In the end, 2019 proved to be a lot more of the same, with new eyeshadow palettes seemingly launching almost every day.
Of course, beauty has beenhistorically cyclical. For example, lipstick and lip liner declined when lip gloss became a subcategory. Change happens much faster now due to many factors, including social media, the magnitude of indie and new brands launching, and retailers’ focus on the beauty category.
Here are the biggest issues to look out for in the beauty industry.
1. The Retail Landscape Is Shifting
For years, Sephora led the incubation of new brands, but its position is now being challenged by mass retailers including Target, Walmart, and CVS. Within the color cosmetics industry, mass retailers are gaining, while prestige retailers are not. The reason? Younger consumers are savvier than ever, and they’re spending less on the category. They’re still buying, but they realize there’s far less quality differentiation among products, which is good news for mass retailers.
Amazon continues to be a formidable player. It doesn’t offer the same experience as other retailers, but it has increased editorial content with expert recommendations to help improve the beauty experience on the site. Recently, it had a big win when it became the exclusive distributor of Lady Gaga’s color brand, and it also launched its first private-label skincare line. The big question with Amazon is how many brands will partner with it. Direct-to-consumer brands must decide whether to partner with Amazon as the costs of doing business and marketing increase.
Where growth won’t be coming from is department stores. To younger consumers, they seem stodgy and outdated. While pockets of department stores are upgrading their beauty floors, they’re quiet. And if the fate of Macy’s, which announced the closing of 20 to 30 stores, is any indication, department stores aren’t doing well overall.
2. Ulta and Sephora Will Continue to Battle for the Top Spot
For the past few years, things looked bullish for Ulta versus Sephora.
Sephora is a marketing powerhouse and does quite well even beyond the beauty industry. Both its online experience and its ability to market across channels with personalized messaging are superior to those of Ulta. Another strength of Sephorais realizing or creating trends before they’re happening. It was the first retailer to take on labeling and the clean beauty trend. The company is also strong at incubating indie brands, but not so much at nurturing and growing them. Its services and classes get people through the door.
Ulta’s strength, meanwhile, is being an easier retail partner for brands to work with, while some brands have left Sephora because of difficulties working with it. Ulta’s biggest advantage is its combination of mass and prestige, and many prefer its shopping experience, considering it less intimidating and more inviting. It’s the top beauty destination for U.S. teens, according to Piper Jaffray (Sephora was a close second). However, Ulta has been slow to meet trends, such as skincare, or do enough to improve its marketing and online experience.
How this competition plays out depends on how each brand reacts and moves in the coming months. Both retailers need to focus on brand introductions and new products, as well as their online experience and in-store service.
3. The Rise and Fall of the Indies
Within the color category, growth is not coming from indie brands the way it is in the skincare category. Although there’s been a lot of softness in the color category at Ulta as consumers are more price sensitive, the two brands that are performing better there are Morphe and ColourPop, which come in at the less expensive end of prestige.
Glossier is a brand everyone focuses on, but it doesn’t show up in a lot of the data because of its distribution. The brand has been driven by marketing innovations that drive consumer love verses new product innovation. Even now, Glossier is focusing on its core star products, Boy Brow and Cloud Paint. The brand proves that innovation is not just around product but also around marketing and other elements, a lesson other brands should learn.
At the opposite end, there’s Urban Decay, which took the industry by storm a few years ago and had strong growth, starting with eyeshadow palettes and then moving into the lip category. But now it’s seeing significant declines.
It’s clear the explosion of indie brands has turned the whole industry upside down. But the danger lies in approaching a point of brand fatigue. The market is saturated. Consumers are confused. There are too many brands to follow. The burden will increasingly fall on retailers to incubate and elevate small brands.
4. The Growth of Skincare
Skincare will continue to grow, but given the level of growth we’ve seen, it will slow. A couple of factors have driven this growth. Of course, there’s all the new indie brands and the clean beauty trend, but then there’s also the ancillary product categories – including face and body rollers – used in multistep routines, like those popular in Asia. For years, Korean and Japanese people have maintained skincare routines that are 10 to 15 steps, and that’s spreading to the rest of the world.
Consumers have now been educated to expand their skincare routine, and we’re seeing growth in skincare products beyond moisturizer, cleanser, and “the three steps.” Retailers are dedicating more shelf space to skincare, which might help it maintain growth, but retailers will have to be agile.
5. Other Trends to Watch
Clean beauty is here to stay. As brands launch and innovate in this area, consumers will react and buy. The interesting thing about clean beauty is there’s no definition for it. While a loose definition would be products that are mindfully created and produced without any proven or suspected toxic ingredients, anyone can define it however they like. As a result, retailers and brands are really controlling this area. This past summer, Sephora launched a green icon so consumers could more easily identify clean brands. Target has also hopped on that bandwagon.
Men are also a rising segment for the beauty industry. The industry has seen more men purchasing color cosmetics, and in Japan, more young men are wearing makeup, a trend that may hit the U.S. Wellness and sustainability will also continue to trend.
The trend of minimalist makeup is on the outs. For example, there’s a lot of talk right now about the “no-makeup” look or “natural-looking” makeup because of the decline in color cosmetics. The past few months have shown a trend toward young girls with huge fake eyelashes, extreme fake nails, and bright eyeshadow, an indication that some of this cohort is not as interested in the natural look.
6. Social Media Will Move Toward Smaller-Scale Influencers
Even though acquisition costs continue to rise, social media remains a focus in the beauty space. Companies are pouring more resources into micro and even nano influencers, who have greater credibility and authenticity compared to mega influencers. Brands must work harder to identify these relationships and nurture them. Speaking of mega influencers, many are launching their own brands, so they aren’t viable partners for companies anymore.
Beauty brands should also keep an eye on the TikTok platform, which is increasing its capabilities for brands from an information and data metric standpoint and for brands to integrate with influencers. Teens are moving to TikTok, and some brands have had success there, particularly NARS and MAC.
As the beauty industry shifts, retailers, brands, and influencers will all adjust their strategies to rise above the fray. The opportunities may be smaller in terms of dollars but will be necessary for growth.
About Laura Elkins
Laura Elkins is a global brand marketing professional with consumer-packaged goods, luxury fashion, and cosmetic brand expertise. Currently, she provides consulting services to startups and Fortune 500 companies. Laura’s expertise is derived from her more than 25 years of experience in brand marketing. She held leadership positions at Estée Lauder companies for over 10 years, most recently as Senior Vice President of Global Marketing for MAC Cosmetics, where she led the global and regional marketing teams.
This article is adapted from the GLG TeleconferenceBeauty Outlook 2020. If you would like access to this teleconference or would like to speak with Laura, or any of our more than 700,000 experts,contact us.
FAQs
The beauty industry has many flaws, including chemical-laden products, inadequate ingredient labels, and concealed substances. The primary cause of these issues is the absence of regulation as we have mentioned.
What are the problems with the cosmetic industry? ›
Unfortunately, things like excessive packaging, plastic pollution, and unsustainable resource consumption are huge problems within the cosmetic industry that have devastating impacts on the environment. Beauty packaging alone amounts to 120 billion units each year.
What contributes to the beauty industries biggest impact on the environment? ›
Plastic pollution
About 8 million tonnes of plastic enter the ocean each year, and cosmetic containers inevitably contribute in no small measure. Some of these plastics wash ashore and become an eyesore, but plastic pollution has more devastating consequences. Plastic waste is a severe environmental issue.
What are the challenges of a beauty salon? ›
Here are the top fifteen challenges you may encounter while running a salon and possible solutions;
- Hiring staff. ...
- Staff training. ...
- Choosing the right products. ...
- Customer loyalty. ...
- Price distortion. ...
- Marketing your services. ...
- Maintaining consistent income. ...
- High bills.
It has been found that overall the beauty industry has a negative effect on a woman's self-esteem, body image, and perception of beauty. By using upward comparisons, women are constantly comparing themselves to standards of beauty that society shows to them.
What are the 6 common hazards found in a beauty salon? ›
Potential Risks in a Salon
- Slippery floors due to product spills and hair clippings.
- Burns from dryers and curling irons.
- Cuts from razors.
- Repeated exposure to hair products and coloring agents.
- Chemical hazards in hair dye causing injury to customers.
Beauty is often considered a superficial quality, but it has tremendous power over us. An expression of our ever-evolving and surprising diversity, beauty can inspire great joy and creativity, but it can also become a tool of oppression.
What problems do beauty standards cause? ›
Negative body image can lead to a number of mental health problems, such as eating disorders, depression and anxiety. It can also lead to social isolation and low self-esteem. Positive body image, on the other hand, has been linked with better mental health, higher self-esteem and healthier relationships.
What are the ethical issues in cosmetics? ›
Ethic Issues in the Cosmetic Industry
In more recent years, the beauty industry has been criticized for practices surrounding: false claims and misleading advertisem*nts, the unethical sourcing of ingredients, child labor, the use of harmful ingredients, animal testing, and excessive packaging.
How does the beauty industry affect mental health? ›
Our mental health is affected because we become anxious that we're never beautiful enough, skinny enough, or young enough. Thus, we become depressed about our looks. Some turn to self-harming behaviors such as binging, purging, and dieting to control our looks.
Perfumes, hairsprays and deodorants pollute the environment as much as car emissions. Studies have shown that scented products emit the same level of chemical vapours as petroleum emissions from cars in the form of 'volatile organic compounds' (VOCs).
How does beauty affect the economy? ›
Appearance-based discrimination costs the U.S. roughly $500 billion, the team found. “People are not being hired if they're applying for jobs and seen as living in a larger body,” Austin said. “People are not being hired with darker skin shades. They may be hired, but given lower pay.”
What are 3 impacts that the fashion industry has on the environment? ›
While the fashion sector is booming, increasing attention has been brought to the impressive range of negative environmental impacts that the industry is responsible for. Fashion production makes up 10% of humanity's carbon emissions, dries up water sources, and pollutes rivers and streams.
How has the pandemic affected the beauty industry? ›
With the closure of premium beauty-product outlets because of COVID-19, approximately 30 percent of the beauty-industry market was shut down. Some of these stores will never open again, and new openings will likely be delayed for at least a year. The global beauty-industry market has been consistently resilient.
What is the common problem of the salon? ›
However, the most common problems are usually related to the following three facets of the business: Staff management and motivation. Retaining existing clients. Marketing your salon to bring in new customers.
What is a weakness in a salon business? ›
Weaknesses can be reflected in the hair salon's register receipts, but not always. For instance, lack of proper stylist training and poor customer care can hinder the hair salon's income, but still not limit it. Identifying the hair salon's weaknesses is the first step to making strategic improvements.
What are the possible environmental issues in the salon? ›
The most notable environmental issues for salons are:
- The use of chemical products (dyes, bleaches, solvents)
- Air pollution (odours)
- Water use and wastewater disposal.
- Energy use.
- Solid Waste (Paper towels, product containers, other packaging)
Beauty isn't just superficial, and is actually a key part of how we understand and interact with the world around us. Beauty infuses our inner life and helps us form relationships with our environment, from food to landscape to art, and even with each other.
How does social media affect beauty? ›
Social media platforms often feature images of people with seemingly perfect faces and bodies, often using filters and photo editing tools to enhance their appearance. This can create unrealistic beauty standards, leading to body dissatisfaction and low self-esteem in both women and men.
Why is beauty so important in society? ›
Beauty creates harmony
Everyone desires to look good, it's not only to be liked by other people but also for loving oneself more. This explains the importance of beauty as a value in our society and the increasing attention of new generations of students to this value and how to maintain it through time.
7 Common Health and Safety Hazards in the Hair Salon
- Ergonomic hazards. ...
- Chemical hazards. ...
- Burns and cuts. ...
- Slips, trips, and falls. ...
- Noise hazards. ...
- Mental health. ...
- Fire hazards. ...
- Do you need help creating a health and safety policy?
Here, we've rounded up some tips to prevalent hazards that may lead to an unpleasant moment for the salon owners.
- Salon Uniform is Indispensable. ...
- Maintain Proper Hygiene. ...
- Respiratory & Dermatological Complications. ...
- Fire Risks.
Here are a few ways to begin to change your focus and rebuild your self-worth and reject our culture's body standards:
- Go On A Media Detox. ...
- Indulge in Positive Messages. ...
- Affirm the Positive. ...
- Practice ACT. ...
- Practice Non-Judgment.
Tips to overcome unrealistic beauty standards
- Accept yourself.
- Go on a Social Media Detox.
- Indulge in Positive Messages.
- Read self-help books.
- Try positive affirmations.
- Practice Non-Judgment.
- Find what you are good at.
- Seek professional help.
The need to wholly submerge in the ideal standards can be for two main reasons, one being the societal context and the other being the obsession created by themselves or by social media. There are numerous beauty standards set around the world that are positive as well as unrealistic.
What is the social issue of beauty standards? ›
Unrealistic beauty standards are a plague to today's society. Women look around and see expectations of what to look like everywhere around them. This can lead to mental health issues and other issues. It can also cause women to try to change themselves to fit society's image.
What are the beauty industry unrealistic standards? ›
These standards are typically Eurocentric and include being thin and tall, having long hair, fair skin, a small nose and high cheekbones. These confines strip women of their agency, and thus keep them out of spaces of power.
What are the possible factors that can affect the beauty? ›
Many factors can play into personal attractiveness — the way you dress, the way you act, the way you carry yourself, even things that are hard or impossible to change, like social status and wealth, race, and body size and shape.
What are the six ethical issues? ›
These principles include voluntary participation, informed consent, anonymity, confidentiality, potential for harm, and results communication.
What are the 12 ethical issues? ›
What Are the 12 Ethical Principles? Business ethics is an evolving topic. Generally, there are about 12 ethical principles: honesty, fairness, leadership, integrity, compassion, respect, responsibility, loyalty, law-abiding, transparency, and environmental concerns.
Stress causes changes to the proteins in your skin and reduces its elasticity. This loss of elasticity can contribute to wrinkle formation. Stress may also lead to repeated furrowing of your brow that may also contribute to the formation of wrinkles.
How many people are affected by beauty standards? ›
According to the report, 16% of the U.S. population aged 10 years or older – 45 million people – experienced body dissatisfaction. And across the board, women bore the highest financial costs of body dissatisfaction and appearance-based discrimination.
How does beauty affect happiness? ›
Personal beauty raises happiness, with a one standard-deviation change in beauty generating about 0.10 standard deviations of additional satisfaction/happiness among men, 0.12 among women.
How much waste comes from the beauty industry? ›
The Ugly Side of Beauty Products
It's obvious that beauty products have an ugly environmental impact. According to statistics from the Zero Waste Week research, plastic packaging waste from the beauty industry reaches over 120 billion units of packaging annually.
How does the beauty industry affect climate change? ›
Despite this, cosmetic makers often tout natural ingredients, implying that they are less polluting and therefore better for the environment. On the contrary, the “natural” ingredients in personal and skin care products often contribute to pollution, habitat destruction, and climate change.
What is the problem with modern beauty standards? ›
The pursuit of modern beauty standards can have serious consequences for an individual's mental health. Individuals who struggle to conform to these standards can experience anxiety, depression, and low self-esteem, which can negatively impact their quality of life.
What is the issue with Sephora? ›
When California fined the beauty brand this summer, it was the first enforcement action under the California Consumer Privacy Act. The state said Sephora illegally sold consumers' personal data using third-party trackers to get targeted ads and discounts on analytics.
What is the next trend in the beauty industry? ›
An Emphasis on Sustainability
Another prominent trend shaping the cosmetics industry is a growing focus on sustainability. Consumers, particularly Millennials and Gen Z, are becoming increasingly aware of the environmental impact of the products they use and are looking for cosmetics that are eco-friendly.
What are today's standards of beauty? ›
So, what do the current western beauty standards look like? Typically, a curvy figure, tanned skin, big eyes, plumpy lips, thick thighs, large busts, and big butts are the main aesthetic appeals for a female.
What are harmful beauty standards? ›
Toxic beauty standards are those that promote a narrow definition of beauty, often based on Eurocentric features and body types. These standards are often perpetuated by the media, celebrities, and influencers, and can lead to feelings of inadequacy and low self-esteem in those who do not fit the mould.
Social media platforms often feature images of people with seemingly perfect faces and bodies, often using filters and photo editing tools to enhance their appearance. This can create unrealistic beauty standards, leading to body dissatisfaction and low self-esteem in both women and men.
Who is the biggest competitor to Sephora? ›
sephora.com Top 7 competitors
The closest competitor to the sephora.com is ulta.com that ranks 5153 worldwide, 968 in United States, and 4 in Beauty. According to our estimations ulta.com is getting 21.9M visits in May 2023 and the authority score of this domain is 79.
Why is Sephora closing in JCPenney? ›
(BIPOC is an acronym that stands for Black, Indigenous and people of color.) Sephora didn't renew its 15-year contract with JCPenney and moved its in-store shops to Kohl's, which has said it plans to put Sephora in all 1,100 of its stores. About 600 are open now.
Why are beauty standards a problem? ›
Negative body image can lead to a number of mental health problems, such as eating disorders, depression and anxiety. It can also lead to social isolation and low self-esteem. Positive body image, on the other hand, has been linked with better mental health, higher self-esteem and healthier relationships.
How do you solve unrealistic beauty standards? ›
Here are a few ways to begin to change your focus and rebuild your self-worth and reject our culture's body standards:
- Go On A Media Detox. ...
- Indulge in Positive Messages. ...
- Affirm the Positive. ...
- Practice ACT. ...
- Practice Non-Judgment.
The market is oversaturated, and everyone knows it. Celebrity beauty brands are officially on their way out — but that doesn't mean the beauty business is slowing down. The global cosmetics market is expected to grow from $382.88 billion in 2021 to $643.03 billion by 2030.
What are 2023 beauty standards? ›
We're putting away shades with bronze, peach and red undertones in favor of cooler colors in 2023—and we have the grunge aesthetic to thank for that. “The '90s grunge look is coming back, which is all about unfussy, smudgy cool gray tones,” says Patinkin.
What is the beauty trend in 2023? ›
Coquette beauty is officially the leading emerging beauty trend of 2023. Defined by pinks, Lana Del Rey style eyeliner, doe eyes and rosy cheeks – this trend is the epitome of hyper-feminine glamour.
What are the beauty trends in 2023? ›
Twinkling, metallic lids, bold lip shades, barely-there brows, and layers of blush are probably already taking over your For You Page, as they're some of the biggest beauty and makeup trends for summer 2023.
