Beauty and Grooming Sector Landscape – Consumer Behavior, Innovations, News and Deals Analysis

The global beauty & grooming market was valued at $332.5 billion in 2020 and the market is expected to grow with a CAGR of more than 4% during the period 2021-2025. The global beauty and grooming sector saw a downward volume and value trajectory between 2019 and 2020 due to the outbreak of COVID-19 and the market saw its biggest drop in 2020.

With widespread store closures and employees working remotely, the beauty and grooming sector has been hit hard during 2020 with less makeup, skin, and hair care as well as fragrances being bought as a result of greater consumer focus on essential goods. From 2021 onwards, volume is expected to recover, but at a far slower rate than pre-pandemic forecasts and it is predicted to surpass, 2019 volumes in 2025. Value, on the other hand, is expected to make a faster recovery compared to volume; it is forecast to exceed 2019 levels in 2022, with further growth expected through to 2025.

Asia-Pacific is a key region for beauty and grooming, taking the lead in volume and value terms and showing promising growth. West Europe, North America, and Latin America were the next top markets in the global beauty & grooming sector. Skincare is the largest category in terms of volume and value, followed by haircare, and makeup. Haircare is set to experience the fastest growth in value levels between 2021 and 2023, mostly due to the scalp care trend.

Overview of the global beauty & grooming market

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What are the market dynamics of the global beauty & grooming market?

With COVID-19, hampering retail performance, the skin and hair care markets will lead the growth in the next three years. The beauty and grooming sector has been impacted the most in 2020, due to COVID-19. However, it is forecasted to recover, albeit at a slower rate than the pre-pandemic forecasts. Due to bans on social gatherings and employees working remotely, the make-up sector has witnessed the biggest decline, while skin and hair care are set to experience value growth that will surpass 2019 levels from 2021 onwards.

The boom in e-commerce means that it will continue to be a key channel for profits. During the pandemic, online has become the most popular channel for buying beauty and grooming products, with over 50% of consumers purchasing their items via a supermarket’s online website, a brand’s social media websites, or even through an online regular subscription. With e-commerce booming in popularity, companies should invest in a strong online presence, either via social media platforms or websites, as online shopping will become a permanent consumer behavior even after the pandemic subsides.

Products made by multinational brands still lead the way; however, private label brands are seeing a boost in sales. Most of the global respondents are still purchasing from international brands; however, some of the global consumers prefer private label brands. This can be attributed to an increased interest in value for money, due to economic hardships as a result of COVID-19. While it might be tempting to go head-to-head with private label products, brands need to assess if doing so will eventually hurt their share market in the long run.

For beauty consumers, environmental responsibility is still as important as it was before the pandemic. Consumers have become more aware of the way they purchase and use grooming and beauty products, and may be willing to spend more on brands that offer an alternative to traditional formulas and packaging. It is important for brands to be more transparent and open about how they will incorporate sustainability policies and engage with customers in order to create strong brand loyalty.

Personalization and added functionality are features that are becoming important in beauty products. With the launch of Fenty Beauty’s foundation range with 40 shades, the beauty industry has started to recognize that consumers want inclusivity and self-expression incorporated into their beauty items. In order to capture consumers’ attention and drive sales, brands need to offer smart skincare solutions as well as the ability to customize products or beauty routines according to the user’s needs.

What are the key categories of the global beauty & grooming market?

The global beauty & grooming market is categorized into fragrances, haircare, make-up, male toiletries, skincare, and sun care. In 2020, skincare was the largest category in terms of both value and volume, followed by haircare, and makeup. Haircare is set to experience the fastest growth in value levels between 2021 and 2023, mostly due to the scalp care trend. While premiumization is a key trend for this sector, with value outperforming volume in some cases, sun care and male toiletries will not reach their pre-pandemic levels in the years up to 2023.

Global beauty & grooming market, by key categories

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What are key regions in the global beauty & grooming market?

Asia-Pacific is a key region for beauty and grooming, taking the lead in volume and value terms and showing promising growth. Asia-Pacific will continue to account for the largest share of beauty and grooming volume and value sales in 2021, followed by West Europe, North America, and Latin America markets. In the years to 2025, the region is expected to grow by more than 2% and 5% in volume and value respectively.

While Asia-Pacific will experience the fastest recovery in terms of volume during 2021-25, in terms of value, the region is third after Africa, the Middle East, and North Africa, which are forecasted to grow at a significant rate during 2021-25. Another such example where value is expected to outpace volume is in Latin America, showcasing a wide-ratio forecast.

Global beauty & grooming market, by key regions

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Market report scope

Scope

• Sustainability plays a big role in companies’ future actions.
• Focusing on health and wellness will drive the sector in the future.
• Sustainability will continue to have a major role in how brands design their packaging.
• Online shopping is gaining traction.

Reasons to Buy

• Understand the relevant market and consumer trends that are driving the beauty and grooming sector.
• Gain a broader understanding of the impact of COVID-19 on the beauty and grooming sector and its impact on consumer spending and preferences.
• Access valuable strategic take-outs in the form of specific opportunities to enhance future decision-making and inform new product development.