The Future of the Beauty Industry: Trends, Innovations, and Career Opportunities - TSPA Georgetown (2024)

FAQs

What is the future of work in the beauty industry? ›

Comparing these data to the value recorded in 2018, it emerges that in the latest 5 years the beauty industry has grown by 19.9%, despite the pandemic and the complicated international scenario. For the next 4 years beauty will continue its steady increase, with an average annual growth for the 2024-2028 period of 9%.

The cosmetics industry is seeing a renaissance with increased consumer focus on product usability and overall sustainability, driven by a desire for ethically-manufactured products that also straddle the line with skincare.

Artificial Intelligence

AI is revolutionizing the beauty industry, offering benefits for both consumers and brands. Leading cosmetic companies like Shiseido, L'Oréal, Beiersdorf, and P&G are actively leveraging AI to create personalized cosmetic products.

Artificial intelligence and machine learning technologies help the cosmetic industry understand customer needs, preferences, and behavior and create customized products and services. They also help to optimize production processes, reduce costs, and improve quality.

Especially with the rapid boom of social media, the beauty industry is seeing a growing number of young consumers entering the market. The world is becoming smaller with such interconnectedness of social media platforms. Skincare routines and daily beauty definitions are being redefined.

The beauty industry is expected to top $101 billion by 2027. As the concept of beauty continues to evolve, the industry has been quick to react to the demands of consumers. Personal care companies are using technology and science in innovative ways, all with the hope of winning new customers.

Beauty trends in 2024 follow a similar streaming route to skincare. Makeup-skincare hybrids rule, and we want them to be even easier to use—stick formats for the win, versatile formulations for any part of our face—cheek, lip, and eye make the ultimate trifecta, and we want them loaded with skincare nourishers too.

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.

Following a solid recovery since the height of the COVID-19 pandemic, the beauty market is expected to reach approximately $580 billion by 2027, growing by a projected 6 percent a year (Exhibit 1).

Dewy Skin. Say goodbye to heavy, matte foundations and hello to fresh, dewy skin! One of the biggest summer 2024 beauty trends is dewy skin, with lightweight, luminous foundations and illuminating primers taking the spotlight.

How does the beauty industry impact society? ›

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.

Operating in a fast-paced environment like the cosmetics industry comes with its own specific challenges. Changing global cosmetics regulation for cosmetics manufacturers, innovation and cost-efficiency are some of the hurdles that make it difficult to succeed.

The Impact on Beauty Brands

Beauty brands have quickly recognized social media's potential in shaping beauty trends. They actively collaborate with beauty influencers to promote their products through sponsored posts, product launches, and limited-edition collaborations.

AI-driven algorithms have empowered beauty retailers to offer personalized product recommendations based on individual preferences and skin types. By analyzing customer data and understanding their purchase history, AI can suggest products more likely to meet their needs.

The Beauty & Personal Care market worldwide is projected to generate a revenue of US$646.20bn in 2024. The market is expected to grow at an annual rate of 3.33% (CAGR 2024-2028). The largest segment in this market is Personal Care, which is estimated to have a market volume of US$282.80bn in 2024.

Coined the 'lipstick effect', the theory suggests that despite tough economic conditions, consumers still choose to purchase luxury products but opt for lower cost items such as lipsticks. Is beauty recession-proof? Evidence shows the beauty industry holds up comparatively well when the economy downturns.

Job Outlook

Overall employment of barbers, hairstylists, and cosmetologists is projected to grow 8 percent from 2022 to 2032, faster than the average for all occupations. About 89,400 openings for barbers, hairstylists, and cosmetologists are projected each year, on average, over the decade.