7 trends shaping the beauty industry in 2024
The beauty market, which includes skincare, fragrance, makeup, and haircare, is projected to reach about $580 billion in revenue by 2027 according to McKinsey’s 2023 report “The State of Fashion Beauty.” Its annual growth of approximately 6 percent is comparable to or slightly higher than that of other consumer sectors like fashion (apparel, footwear, eyewear), pet care, and food and beverages.
The top three largest beauty markets in terms of retail sales by 2027 will be:
1. Asia Pacific (excluding China), led by Japan and South Korea – projected to reach $151 billion.
2. North America – expected to reach $115 billion.
3. Europe – projected to hit $115 billion.
The industry’s growth across all sectors and its resilience during economic challenges make it highly appealing to investors.
Key trends shaping the beauty industry
As the beauty industry continues to expand its global footprint, it’s essential to recognize the unique potential it holds across different continents. Understanding the industry’s potential provides valuable insights into the diverse consumer preferences and cultural influences driving trends. Let’s delve into the seven trends that are currently shaping the beauty industry worldwide.
1. AI and personalization
AI is set to further transform the beauty industry, focusing on improved personalization. Beauty brands are already using AI for skin analysis, customized skincare, and tailored products. We expect more integration of technology with human expertise. AI helps track skin changes for early issue detection. Combining AI with professional assessments allows for personalized skincare routines tailored to their specific needs, ensuring accuracy and effectiveness.
2. Beautiful social media
Viral hair, makeup, and nail trends will continue to captivate in 2024, with many originating from platforms like TikTok and Instagram. Analyzing Google search volumes for emerging trends is key to uncovering the ingredients, products, and techniques that will dominate.
Instagram’s 2024 Trend Talk offers insights into Gen-Z trends shaping global culture, with #perfumetok gaining traction as over a quarter of Gen-Z plan to find their signature scent in 2024. Some other significant discoveries from the report that refer to the cosmetic industry are:
- Beauty is going to be all about individuality
- A New Hairstyle’ was Gen Z’s favourite beauty tip they learned from social media, followed by skincare
- Fragrance creators are on the rise
Neom Selects Radial as Partner of Choice
Neom identified Radial as their partner of choice to help facilitate their entry to the US market. After a thorough evaluation of various fulfillment and transportation solution providers, Neom determined that Radial was its best fit to launch B2B operations first, followed by B2C operations a year later.
3. Generation Alpha
The influence of Generation Alpha consumers is growing, prompting brands to prepare for this upcoming demographic. While Gen-Alpha may not have purchasing power yet, brands are already customizing products for them, acknowledging their future role as customers. Preteen influencers, such as the Kardashian kids, are shaping trends on platforms like TikTok, where ‘#generationalpha’ tagged videos are gaining momentum.
4. Body care
Body care is booming, extending beyond just facial skincare and beauty to encompass holistic well-being. This aligns with the “snackable wellness” trend, emphasizing convenient self-care practices. Body care provides both health and aesthetic benefits. Fragrance and texture play crucial roles in boosting self-confidence and overall well-being. Specialized body products are emerging with potent ingredients and formulations designed to nurture the skin’s microbiome.
5. Potent plant ingredients
In 2024, the “clean” beauty trend will spotlight potent plant ingredients. Herbalism and botany will lead the conversation, emphasizing the effectiveness of powerful plant extracts, from common garden weeds to rare indigenous herbs. This trend offers eco-friendly, high-performing alternatives to synthetic and unsustainable ingredients like retinol and palm oil, harnessing the healing properties of plants.
Radial’s Automation Partnership with doTERRA
The partnership between doTERRA and Radial Europe began in 2012 with modest orders. As doTERRA expanded into new European markets like Romania, Lithuania, and Latvia, sales and order volumes increased significantly. To maintain their commitment to quality and timely order fulfilment, doTERRA sought a trustworthy, flexible, and fast-acting 3PL partner in the heart of Europe. In August 2019, doTERRA and Radial solidified their cooperation with a permanent agreement, recognizing Radial’s ability to meet their evolving needs.
6. Sustainability in the beauty industry
In 2024, there will be a heightened emphasis on sustainability among consumers, particularly regarding reusable and recyclable products. A recent report found that 69 percent of people consider sustainability more important now than it was two years ago. Recognizing the beauty industry’s significant contribution to waste, there’s a growing demand for innovative solutions to improve product life cycles.
Initiatives like Boop, a retail site dubbed the ‘Outnet for beauty,’ are gaining popularity by offering excess beauty products a second chance, even those with older formulations or packaging quirks, while ensuring their safety for use.
7. Climate change
As climate change persists and global temperatures rise, there’s a growing emphasis on protective personal care products. Consumers seek items that defend against sun damage and pollution to protect both body and mind. Expect this category to evolve in response to the ongoing challenges posed by climate change.
Paula’s Choice offers a complete range of anti-pollution skincare products.
Fulfillment for health & beauty brands
Beyond the box: mastering e-commerce fulfillment for beauty brands
With the rise of online shopping, purchasing beauty products has become quick and convenient. However, cosmetics are very personal and subjective products, easily influenced by trends. This uniqueness creates various logistical challenges, such as sudden spikes in orders, handling thousands of SKUs, and coping with high return rates. Let’s explore the distinctive challenges and solutions related to order fulfillment in the cosmetics industry.
