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Photo: lordani/Shutterstock.com
Photo: lordani/Shutterstock.com

The Marketing Trends Presentations at this year’s In-Cosmetics Global show in Amsterdam provided fresh insights and data for the global beauty industry. New for this year was a complete day dedicated to key beauty trends from around the globe, focusing on Europe, Asia, North America, Latin America, Africa and the Middle East. 

As scientists’ understanding of the microbiome and the use of actives in cosmetics has grown, this provided the backdrop to presentations covering trends in healthy ageing, anti-pollution and probiotic skin care claims, athleisure, hair care and colour cosmetics. The sessions also include an examination of digital trends, opportunities for brands to expand in China and the reasons why customisation is very much in vogue.

Regional beauty trends

The Cosmetics Design team provided a region by region overview of beauty trends in the $465bn market, which is expected to reach $532bn by 2022, according to Euromonitor data. Simon Pitman alluded to the challenges in the mature European and North American markets, highlighted how fragmented the Latin American beauty market is and that Indonesia, India and China are leading the way in Asia Pacific.

European BPC trends 

2018 Mintel took its BPC 2018 trends and put them into a European context, beginning with Playing Mother Nature and the concept of natural beauty ingredients that encompass local approaches as well as technology developments. In the UK, half of consumers bought products made from natural ingredients over the past year, while 64% of Germans buy natural/organic in order to avoid unnecessary chemicals. “Consumers are willing to have natural identical formulations,” explained Vivienne Rudd, director of global innovation & insight. 

The buzzword is skin microbiome and consumers are starting to understand there is a link between gut health and skin health. Moving forward, Rudd suggested exploring fermentation as a way to deal with the rising demand for natural ingredients. The My Beauty, My Rules trend is about a break with conventional demographic targeting as consumers no longer want to be defined by gender, race, colour or age. Two thirds of Spanish consumers are interested in tailored/personalised products. A third of Italian consumers want products that accept people’s flaws rather than promote a beauty ideal. “Listen to the consumer, produce products that empower, recognise and respect diversity,” advised Andrew McDougall*, global beauty analyst. 

Trending US ingredients 

By category, Nikola Matic, director (chemicals & materials), Kline & Company, highlighted some of the key product trends. They included city stress and bluelight, UV and IR radiation in skin care, how masking is now established within men’s grooming, treatment delivery systems and the use of charcoal in hair care and the growth in scalp care products. Artisanal fragrance brands are exploring ancillary categories, such as Le Labo bath products. These trends explain the success of speciality ingredients which have the largest growth potential in personal care and are currently valued at $22.7bn by Kline. Dow Corning is the biggest personal care ingredient supplier in the US. 

"2018 is the start point to market in a new way as the consumer is no longer the same as five years ago."
Houda Lazaar, Innovation Business Developer, Bloomoon

Beauty routines in Asia

Florence Bernardin, founder Information and Inspiration, compared beauty routines and new product development in Japan, Korea and China. Japan is a more mature and sophisticated market where consumers use fewer products and are concerned with inner beauty. Ageing is a big issue with products targeting the different ages over 50. Korea is all about the experience and format – consumers look for nature with a twist along with a quest for glowing beautiful skin achieved through many steps. China is a young market where beauty brands target consumers in their first job and who have no time for sleeping or a social life. Pollution is a big problem so there is a strong focus on a dedicated cleansing routine. Double cleansing is well established among 81% of Japanese women and 73% of Korean women, with foam cleansers and enzyme cleansing powders a strong trend. Hydration is highly valued and achieved by applying watery/oil layers for perfect comfort and skin translucence. “Mists and balms are now the hydration best friends, perfect for layering and nomadism. New steps with new textures are also being created,” explained Bernardin. Asian women are mask addicts with many using one a day for immediate results from concentrated ingredients. 

Asian woman are mask addicts. Photo: Tom Wang/Shutterstock.com
Asian woman are mask addicts. Photo: Tom Wang/Shutterstock.com

Potential of Middle East & Africa

Megan Powell, consultant, and Vatsala Rathore, associate director, Butterfly, discussed how the $25.4bn MEA market (Middle East Africa market) will grow by 6.4% per annum over the next five years and is evolving into an interesting space with huge potential for marketers. There are big challenges, such as the lack of infrastructure, difficulty for brands to get stocked and heavy taxes. Yet, there are many unmet consumer needs affecting dark skin, curly hair and the Muslim lifestyle. Brands need to understand the tension between Muslim women doing their own thing in a strict religious society. “It should not be a superficial inclusion and brands need to show how women interact with others. It’s not about what she wears on her head,” said Powell. The way forward is in creating brands crafted with MEA consumers in mind that can be adapted by its consumers, that reconnect with local heritage and align with global values. The future will be about how beauty brands can forge deeper and more relevant connections beyond the stereotypes. 

Global growth drivers

The latest Euromonitor research shows a return to strong growth for global skin care, up 8% in 2017 and overtaking colour cosmetics as the fastest-growing beauty market. According to Kseniia Galenytska, senior analyst beauty and fashion, Euromonitor International, the largest sector in skin care is anti-agers, which are expected to be the main contributor to future growth up to 2022 due to an increased focus on product claims, such as anti-pollution. 

Galenytska’s presentation identified healthy ageing as one of the megatrends, led by the trend for healthy eating and lifestyle choices. Euromonitor research confirms the importance consumers place on using skin care to improve the look or feel of their skin and to achieve clear and healthy looking skin. “Consumers are looking to replace artificial ingredients, want fewer ingredients in products and put their trust in traditional and transparent products,” said Galenytska, adding that this is highest in North America and Europe. The trend is spilling over into beauty with brands such as S.W. Basics formulated with just three ingredients. Beauty athleisure is linked to the concept of healthy ageing as more people partake of exercise, which is creating a niche for products that support this trend. These include sweatproof cosmetics, such as Clinique Fit and Sweat Cosmetics. Healthy ageing is also about internal balance, and beauty brands are tapping into wellbeing, such as Moon Juice, a holistic one-stop shop in California selling items such as Brain Dust, Sex Dust and Dream Dust.

Maria Coronado Robles, senior ingredients analyst, Euromonitor, examined how skin care brands are embracing the concept of protection with anti-pollution and probiotic claims. “Air pollution is not just Asia’s problem,” she affirmed, “but a global phenomenon. By 2030, 60.5% of the world’s population will live in cities, rising to 82.9% in Latin America.” Products to slow urban skin ageing are therefore on the rise and sought by 25% of Generation Z consumers, the generation below millennials. In addition to skin care, Euromonitor has identified growth opportunities for anti-pollution ingredients in sun care, hair care, skin barrier and full protection products, with a possible interest in products that tackle the effects of vehicle particulate emissions. 

As highlighted throughout the In-Cosmetics Global show, the skin microbiome is a business opportunity. Many types of probiotics are now used in personal care, anti-ageing and dermocosmetic products from a wide range of brands, such as Clinique, L’Oréal and Elizabeth Arden, to Mother Dirt, Glowbiotics, Drunk Elephant, Gallinée, JooMo and Chuckling Goat. Coronado Robles discussed the challenges in developing probiotic beauty products, including the medium to long-term effects in using them.

"Brands need to show they are not just interested in millennials"
Lia Neophytou, associate analyst, GlobalData

Spotlight on different product categories

Consumers’ high engagement on social media is helping to fuel fast growth within the global $48.3bn make-up market, according to Charlotte Libby, senior beauty analyst, Mintel, whose presentation covered the latest fashions, colours, ingredients and packaging. Make-up fashions are heavily inspired by beauty influencers, especially in China where 41% of make-up users take heed of bloggers. New fashions include the use of liner on the inner corner of the eye to make it brighter; a return to body make-up, influenced by Fenty Beauty and temporary tattoos. The internet is a showcase for visual facial art, such as crystals, gems, flowers and studs, as well as techniques using artificial reality (AR). “New York Fashion Week has promoted a return to colour,” stated Libby, and is where new trends such as blush replacing contouring are taking place. Glitter is back in force as evidenced by MAC showcasing 13 new glitter shades. “We’re now seeing glitter for sensitive skin and there is an environmental consideration too – glitter must be biodegradable,” said Libby. The probiotic trend has also reached make-up with fermented ingredients used to promote healthy skin. Packaging innovations include formats that have more than one function and are attractive enough to look good in photos. 

The global hair care market is poised for growth, according to Global Data, which identified shampoo, conditioner and hair colourants as the three fastest growing segments, all increasing in excess of 4% per annum. Image consciousness is one of three drivers of consumer attitudes and behaviour. “Social media is putting pressure on hair appearance as 33% of global consumers claim it has made them more self-conscious about their appearance,” said Iliyana Mesheva, associate analyst, Global Data. Many consumers are taking a more holistic approach to hair care as they do in other parts of their life. The third driver is a shift towards more sophisticated hair care regimes with up to eight different steps, such as pre shampoo, serum, mask, pre style and after style. K-hair care has undoubtedly impacted this trend and is gaining more prominence globally. Customisation in hair care is also creating new hair care opportunities, such as niche Canadian brand Oleum Vera Do-It-Yourself kit of oil treatments, mask and rinses. Mesheva also highlighted new innovation opportunities through tech advances such as Schwarzkopf Professional SalonLab Analyzer, a handheld device that measures hair moisture, quality and colour and provides hyper-personalised hair care products. Waterless solutions are also expected to grow the hair care market, with products such as Ouai Anti-Frizz Hair Sheets made from hemp paper enriched with coconut oil and shea butter, and L’Oréal Paris Magic Touch Instant Root Concealer, a temporary quick fix solution to cover up grey hairs. Future opportunities include tailored product based on DNA samples and day and night treatments akin to those seen in skin care. 

The challenge for marketers is to rethink the "For Men" concept. Photo: Dmitry A/Shutterstock.com
The challenge for marketers is to rethink the "For Men" concept. Photo: Dmitry A/Shutterstock.com

Men’s grooming is due for a revamp, according to Louise Barfield, head of marketing, Two by Two, who believes that the industry is too quick to divide products up by gender. Despite the size of the global men’s market at $40bn, the challenge for marketers is to rethink the “For Men” concept. Barfield discussed some of the behavioural changes that are leading to the redefinition of masculinity, including the repositioning of leading brands Lynx/Axe and L’Oréal Men Expert to be more in line with modern men’s expectations. She suggested new ways to connect with men, including through online subscription services, health-tech and wearables and cross-category innovation, such as cycling brand Rapha’s Chamois Cream designed for cyclists who shave their legs. 

According to Madelyn Postman, director and co-owner, Leidar London, the baby toiletries market can be segmented according to a brand’s authority and story. For example, Burt’s Bees, Weleda and Earth Friendly Baby all have a strong brand story and are therefore able to command a significant premium compared to brands such as Sanex Kids, Johnson’s Baby, Baby Dove and many own label baby brands, which are up to 30 times cheaper per 100ml. It is a crowded and mature market which attracts new brands, dubbed “accidental entrepreneurs” by Postman. These are parents who become more aware of health, lifestyle and sustainable issues once they have children and often start brands as a result of allergies to existing products. The rise of the “mumpreneurs” is impacting on existing well-established brands, such as Johnson’s Baby, although many bigger brands are still attracted to the category with baby and children’s versions, such as L’Oréal Kids, Simple Baby, Nivea Baby, Baby Dove and Sanex Kids. “There’s a gap in the market, but is there a market in the gap?” asked Postman, who believes it can be done by telling an authentic story and getting your messaging right.  

Evolution of natural & organic cosmetics

Ecovia Intelligence valued the natural and organic cosmetics category at $9.6bn in 2016, with growth of 5–6%. Sales in Europe reached $4.1bn, growing fourfold in ten years, compared to a market value of $4.9bn in North America. “In Europe, 60% of natural and organic cosmetics are now certified compared with just 11% in North America,” explained Amarjit Sahota, founder and president, Ecovia Intelligence. Greenwashing is still a big problem in the category with too many conventional brands selling products as natural or organic. Sahota cited examples such as Natural Republic Aloe Vera and AS Watson’s Naturals range which carry labels to give the impression they are certified. With more than 30 standards now in operation globally, Sahota does not believe that they are the solution to greenwashing – they just make it worse. Looking to the future, he foresees more labels for single ingredients, such as rice, soy, sugar cane and palm oil, though this could lead to even more logos. Another trend will be a move away from fear-based marketing as consumers become more informed about natural and organics through apps. Packaging will also come under scrutiny, with a move towards plantable formats and single use minis. The biggest impact will come from consumers reducing the time spent in the shower at lower temperatures. “Consumer use is the biggest part of carbon footprint at 58%”, pointed out Sahota.

More sophisticated hair care regimes comprise up to eight different steps. Photo: Cheangchai Noojuntuk/Shutterstock.com
More sophisticated hair care regimes comprise up to eight different steps. Photo: Cheangchai Noojuntuk/Shutterstock.com

Fragrance in cosmetics

Latin America is an important growth market for beauty and personal care fragrances and is expected to grow as the Brazilian economy recovers from recession, commented Kim-Davy Hoeu, founder and director, KDH Concepts. By contrast, the market for fragrance ingredients in North America and Western Europe is sluggish, though they remain significant targets for new fragrance ingredients and notes. The MEA and Asia Pacific regions also demonstrate strong growth patterns. The largest markets for fragrances are bath & shower products, which account for 46% of the total, followed by deodorants at 23% and hair care at 20%, though it is body care which offers the greatest opportunities for growth. Apart from price, fragrance is the number one reason to purchase for global consumers, especially among young people aged 18–24. Fruity notes, including exotic and red fruits with a warm gourmand or oriental face are the most popular ones used in beauty and personal care products, followed by floral notes to promote relaxation and for use in beauty rituals. 

New beauty behaviours

Lia Neophytou, associate analyst, GlobalData, talked about the athleisure trend which brings the worlds of style and sports together in a new lifestyle trend. It has strong links to sports clothing, which grew by 20.4% in the UK to reach £5bn in 2017, healthy eating and exercise. Consumers, many of them millennials, want to look their best in the gym, giving rise to the hashtags #GymSelfie and #CleanLiving, led by influencers such as Kayla Itsines. “There is room to target other groups, such as Gen X and Boomers. Brands need to be inclusive and show they are not just interested in millennials,” stated Neophytou. She identified opportunities for beauty brands in this space, including developing beauty fitness brands that have staying power as well as for “post-gym” skin; functional outdoor products that protect against the elements and pollution, as well as cool down, post-workout recovery products; and optimising multifunctional products for use out of home. 

According to Paula Cardoso and Houda Lazaar from Bloomoon, the consumer must be involved in every step of the innovation process. Inviting the audience to put on 3D glasses, they showed a futuristic view of a connected consumer who will have her sleep cycle, natural cycle and physiological needs monitored in real time to create a hyper-personalised range of skin, hair and body care products. “2018 is the start point to market in a new way as the consumer is no longer the same as five years ago,” commented Lazaar. “She demands sleek, high quality products, organics, a commitment to sustainability and a wow factor. In short, a unique consumer experience.” It will require radical, disruptive innovation and a new way of designing an existing experience.

Accessing the Chinese market

Helen Miller, founder, Helen Miller Consulting, discussed the opportunities and challenges for beauty brands looking to expand their business into China. Getting established is complex and costly, involving large fees and an understanding of the changing nature of Chinese import regulation. “Brands seeking volume often struggle to get it,” she pointed out. “SME’s with no expertise or the resources to export may feel overwhelmed by what they don’t know.” Miller recommended employing a brand-focused Mandarin-speaking agent who can provide the gateway for businesses to trade in the world’s largest and fastest growing consumer market, valued at $1,973bn by eMarketer. This would enable brands to focus on their domestic, European and North American export strategies, leaving their agent to launch their products and drive sales to China. Miller described the Chinese retail landscape dominated by Alibaba and JD, while Koala is the leading platform with a 24% market share. Western brands are in high demand and perceived to be of higher quality, with many premium brands from corporates already using the online opportunity with platforms such as Koala, Mei.Tmall.com, JD.com, vip.com and Taobao.com. Chinese social media should also not be ignored as they have been found by AT Kearney to have ten times more influence on purchase decisions than in the US.  

Round table: are indie brands worth the hype?

COSSMA’s senior editor Angelika Meiss moderated the round table discussion about indie brands which included Camilla Marcus-Dew, co-founder, The Soap CO., Zeze Oriakhi-Sao, founder, Malée and Nick Vaus, partner and creative director, Dew Gibbons + Partners, who have rebranded and are now called Free The Birds. The Soap Co. has a unique positioning in the beauty market in that 80% of its staff have a disability or mental health condition. Marcus-Dew wanted to find a connection between good causes and good business in order to have a purpose in society. The range has been gaining ground with department store retailers, luxury restaurants and hotels. Oriakhi-Sao described Malée as the new face of beauty that opens the door for African beauty. Malée was her great-grandmother’s name, while the ingredients and scents were inspired by Oriakhi-Sao’s travels to Africa. Aware that the market was saturated with the same brands offering the same propositions, she set out to create authenticity and a soul to the brand. As a designer, Nick Vaus works with many indie brands that have this kind of energy and brings them to life with a visual identity. If the brief is about digital, Vaus will make the brand look consistent on all platforms. Passion, however, is not enough to succeed. When Marcus-Dew first set up she asked for favours, begged and borrowed from people to support the concept, design and PR. Oriakhi-Sao described how she did not have the luxury of failing. “The concept of failure is the biggest thing that holds you back,” she said. Vaus’ biggest advice to indie brands is to calm things down and bring clarity to the table. “Many just have one consumer in mind, but they’re not all 16-32. It’s easy to go off on a tangent.”

AUTHOR:

Imogen Matthews
Consultant to In-Cosmetics
Oxford, Great Britain

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