By Rieva Lesonsky
Beauty sales are “skyrocketing” according to WWD. Jane Hali, the CEO of retail investment research firm Jane Hali & Associates, told WWD that beauty products are selling these days because of “differentiation. Beauty offers uniqueness and newness.”
A lot of the growth is driven by millennials—who are such big consumers of beauty products that they create beauty trends and fads. Right now, says millennial authority Ypulse, these young consumers are obsessed with natural ingredients, which led to natural products growing 7% last year, compared to 2% growth in the overall beauty market.
In 2016, according to Statista, the global cosmetic market grew about 4%, compared to 2015. And U.S. sales accounted for 24% of the global cosmetic market in 2016. Skincare, hair care, make-up, perfumes, toiletries and deodorants, and oral cosmetics are the main product categories of the cosmetic market.
There are specific beauty categories that are particularly popular right now. If you’re thinking about getting into the beauty industry, these may be good places to start.
According to Mintel, the nail treatment category is attracting lots of consumers and brands are “bringing new innovations to this sector, replicating claims and formats seen in facial skincare.”
Since many American consumers are concerned about chemicals in products, many nail-care products now feature ingredients you’d find at a salad bar, such as kale, turmeric, carrots, milk and almonds. Mintel says nail polish brands that offer products like these “should promote their superfood ingredients.”
If this industry sector interests you, Mintel forecasts, “Looking to the future, there are opportunities for nail polish brands to further promote their superfood ingredients by texture matching, or creating DIY products for users to mix at home.” Another area of opportunity, it says, is creating products for aging nails—“hydrating, strengthening and smoothing products, designed specifically for older consumers.”
Skincare was the leading category in the beauty industry, accounting for 36.4% of the global market, according to Statista. And it’s predicted it will remain the most profitable product category, as its market value is projected to grow by $20.1 billion from 2014 to 2019. All-natural products are particularly in demand these days—57% of women say it’s important for them to but all-natural skin-care products. Skincare products can be found here.
Other beauty categories
Hair care products accounts for about 23% of the market. Cosmetics is also a fast-growing part of the beauty industry. Global cosmetic sales hit $85 billion in 2016, according to Statista. Of that, eye makeup accounted for $2 billion in sales in the U.S. In 2016, eyebrow makeup sales in the U.S. alone grew by 53%. You can contact eye makeup suppliers on Alibaba.com.
A key component to success in the beauty industry—social media, especially YouTube and Instagram. These platforms are highly influential among certain groups, and create a demand for beauty products. Statista reports 51% of beauty content videos on YouTube are dedicated to makeup. And 45% of the videos are tutorials, which are very effective for reaching consumers.
If you want to see how the big guys do it, MAC Cosmetics have the most followers on Twitter and Instagram.