Fast-tracking new products

Some of the most pronounced changes we see today include the way we view our personal identity, the use of technology to engage with our peers, online engagement when sourcing new products, and critically, the seamless merger of personal ethics and sustainability when it comes to skincare ingredients and new product development.1 Oleon Health and Beauty (Oleon) for example anticipates market trends through intimate customer approach. The focus is on consumer requirements and investigating how products can assist in meeting these conditions. For instance, the development of the “Jolee” range was directly aligned with these changing requirements, including the four pillars that resonated with the modern beauty consumer: sustainability, innovation, ease of use, and premium safety and quality. Moving to 2024 and beyond, consumers are expected to call for even bigger changes and concrete actions from companies. Sustainable and ethical products are no longer a differentiator, but rather the expectation of customers. The five trends outlined below could significantly impact new product development for beauty and personal care brands in 2024.

Act now for a greener future

Doing better, not just less harm with taking the call for ethical sustainability during manufacturing to heart. Oleon’s newly launched enzymatic esterification facility, situated in Oelegem near Antwerp, Belgium, is said to be an example for that ethos. The plant is built on the principle of enzymatic esterification - an innovative solution for the production of sustainable oleochemicals within a wide range of industries. By making use of all natural enzymes, the facility will greatly reduce CO2 emissions during the production of enzymatic esters for use in, amongst other sectors, the cosmetic and food industries, contributing to significantly less waste. In addition, the enzymes used can reduce working temperatures and increase product quality. This successful approach can now be seen in the launch of the “ACT” range, the reformulation strategy for existing beauty and personal products and in how natural, biodegradable, and regenerative ingredient portfolios could be developed in the future.

Driving value for consumers

While the beauty and personal care industry is regarded as being famously ‘recession proof’ (consumers often turn to cosmetics as an affordable luxury), there is no doubt that consumers are feeling the effect of high inflation and are planning their spending carefully.3 In particular, the concept of value is expected to evolve in dynamic ways.4 Ernst & Young’s Future Consumer Index shows that people continue to be worried about the future with 62% not expecting the economy to recover within the next 12 months, and 58% expecting living costs to increase over the next six months and into the first quarter of 2024. These fears are reflected in changing behaviours with up to 34% of consumers substituting their normal purchases with new brands, 28% switching to private labels and 50% purchasing less expensive alternatives or duplicates.5 While this is opening up new avenues for product development, brand owners that offer affordable duplicate products often have to work harder to establish the credential of these products.6 These items frequently have a less than stellar reputation, forged by the assumption that they are unethically produced, making use of untested and unregulated raw materials.7 To be seen as competitive, brands in this space should continue focusing on proving the full traceability of their products – including the provenance of its raw materials and ingredients, their formulations and manufacturing operations, and all certification, safety, and technical data. Brands should also address the issue of waste in the face of a ‘more is more’ ethos. The beauty industry is already under scrutiny for excessive amounts of unrecyclable plastic waste, and it is up to manufacturers and brand owners to offer packaging solutions that are recyclable or have a reuse value.

Redefining luxury 

To stay relevant as opposed to just exclusive, the luxury skincare segment must evolve by taking the requirements of a new and more sustainably focused luxury consumer into consideration. Prestige skin care ingredients and products are no longer seen as just a vanity addition to bathroom shelves, but should provide measurable evidence of an ingredient’s backstory, history, and provenance, and most importantly, its manufacturing footprint. The sector will continue to see dramatic changes, and driving this shift is a new generation of younger luxury shoppers with distinct preferences. These consumers are vocal in their requirements for sustainable ingredients and products, and quick to tailor their consumption habits to reflect their values. Brands that drive innovation through sustainability initiatives will find favour with the 67% of Gen Z and Millennial shoppers currently factoring sustainability practices into their purchasing decisions.These consumers will support brands that bring a new energy and vision to luxury skincare new product development while not losing sight of key performance requirements, including visible improvements in skin texture, hydration, elasticity and the use of advanced technology and science-backed ingredients.