In a world that is leaning towards organic and nature-based cosmetic products, beauty and its allied sectors are consistently showing upward growth trajectory. From plastic surgery to everyday use of cosmetics and grooming products, well-heeled men and women indulge in hi-end brands that is an extremely positive sign for the industry in years to come
It’s every woman’s secret wish to be beautiful. Of course, in today’s world, there is obsession on inner beauty vis-a-vis outer beauty. But a secret craving to look beautiful is innate to every woman. Of course, there are many time-tested grandma’s tips for beautiful skin and hair. Still the beauty industry caters to an increasing number of young girls and women who are inspired to look their best.
“Many major brands now follow ethical rules and there is a huge, I say, huge market for ayurvedic or nature-based beauty products. In fact, it is emerging as a multi-billion dollar industry in itself,” says Business Strategist Hirav Shah.
Be it in India or abroad, there is a new-found craze for nature-based products. As for mainstream beauty products, who wouldn’t want a Bobbi Brown or Chanel in their vanity collection. The explosion of e-commerce has also led to both men and women stocking on their favourite brands or on products that match their ethical choices.
Let’s check out some FAQs of the beauty industry
What encompasses the beauty industry in short?
The beauty industry covers a wide variety of personal products (skin care; colour cosmetics; hair care; fragrances), beauty appliances (hair dryers; brushes; combs), services (salons; day spas) and related functions (packaging; supply chain). Naturally, this covers a rather wide base and includes supply chains to support the glamourous front-end of the industry.
How does one stand out in this over-hyped industry?
The rules are simple to play by. And the discipline required is similar to any other major industry. So, in order to make inroads into the hi-end market and to create a niche for yourself, research, study, network, network and network. Since the industry is vast, be clear of where you want to be and how you want to see yourself in years or decades to come. Intense market research is crucial for success. Tapping into resources, old and new will help you come up with new ideas, ideas that can disrupt the industry, just like nature-based products have, opines Business Astrologer™ Hirav Shah.
Remember, beauty is not a stand-alone industry. It pays to keep track of latest and upcoming fashion trends to enhance your consumer experience. Art, movies, sports – there is inspiration and specific requirements for different consumers. Even developments in science can indirectly help in defining the trends in the beauty industry.
So it pays to be spot on and well-researched.
How much is the beauty industry’s worth?
The revenue of the US cosmetic industry is estimated to be about 49.2 billion US dollars in 2019. Just the skin care market in the US is estimated at US $39.2 billion in 2020, which is despite the pandemic. The digital disruption of the industry helped in keeping the industry optimistic. As per Hirav Shah’s experience in the Beauty Industry and his mastery in estimated Income of any business, rough estimates show that beauty and personal care products market value will be about $97.3 billion.
As for India, India’s market was worth $14 billion in 2019. This is thanks to online sales, premiumisation and a growing tilt towards organic and ethical brands. However, there is reason to cheer as India’s cosmetic market is expected to grow by 25% equalling to $20 billion by 2025 says Hirav.
Is the beauty market saturated?
There are some questions as to whether sky-high valuations in the sector may be cooling off. But despite an increasingly saturated market, beauty has proven to be a strong investment category thanks to its high margins, recurring purchase patterns, and general resistance to macroeconomic events such as recessions, gives strong and positive opinion by Business Strategist Hirav Shah.
What are the reasons for rising profits in the beauty segment?
- Rising awareness of beauty products, increasing interest in personal grooming, changes in consumption patterns, changing lifestyles, higher purchasing power, more disposable income among men and women is expected to boost the industry.
- Then there is the boom of organic products. In fact, it is said that markets like India are showing a growth rate of 13-18 per cent, which happens to be more than the US and Europe.
- Trade shows also propel the growth of the market as they facilitate B2B meetings between companies, distributors, buyers, importers and suppliers. They will present new opportunities for brands of finished products, especially cosmetics and toiletries, beauty salons, hair, nail and accessories; and for supply chain, with leaders in raw materials, ingredients used, contract manufacturing and private labels, applicators, primary and secondary packaging.
They provide a platform for interactions between various nations and their premium brands and labels.
And then, there is the services industry
In the United States alone, the beauty services sector job growth outlook is ‘faster than average’, at a rate of 13% between 2016 and 2026. It was worth $532.43 billion in 2017 and is expected to reach a market value of $805.61 billion by 2023.
What is the oldest cosmetic brand in the world?
Japan’s firm Shiseido is the world’s oldest cosmetic company. Shiseido shifted from pharmacy-based products to cosmetics in 1897 with the introduction of Eudermine, a softening lotion to hydrate the skin, packaged in a ruby-red bottle worthy of a high-class perfume. (Over a century later, Eudermine remains a favourite with consumers.)
The Shiseido Corporate Museum located in Kakegawa city, Shizuoka, a two-hour bullet train ride from Tokyo, is dedicated to the world of Shiseido. Exhibits related to the company’s history from its establishment to the present day are on display: products, packaging, advertising, information, and even a small theatre space for viewing the beauty brand’s TV commercials. There are approximately 200,000 items in the collection. It’s an astonishing number, but Shiseido is 144 years old and counting.
Which people or who wore cosmetics first?
To cut a long story short, ancient Egyptians. They were the first women to wear makeup. In a way, the basic motive back then was the same as it is today — just like modern day supermodels, the well-heeled women of ancient Egypt wanted to look their best and saw the careful application of face-paint as a means to that end.
Which are the top cosmetic brands globally?
As per Business strategist Hirav Shah, the biggest companies include L’Oreal, Estee Lauder, Procter & Gamble and Coty are the top cosmetic brands globally.
Who are the biggest spenders on cosmetics? Which markets are profitable?
It has been found through research that Western Europe spent a whopping $748 billion per annum on beauty products. The US came second with $663 and China was third with $661 billion.
Top 5 beauty-obsessed countries on earth happen to be the United States, Brazil, Japan, Italy and Mexico. The five countries accounted for 41.4% of world’s spending on surgical procedures like Botox, liposuction, rhinoplasty, eyelid surgery, tummy tucks, hair transplants, gynecomastia, soft tissue fillers, chemical peels, laser hair removal, microdermabrasion. Coming next are Russia, India, Turkey, Germany and France.
Korea is another cosmetic-obsessed nation, more so because of Korean wave or products part of hallyu, which has been spreading South Korean culture and spreads over make-up, K-pop music, food and movies. They are highly popular with the young obsessed with this culture.
The hair and hair-care industry is expected to go up to $87 billion by 2023. As per stats from 2019, US made $12 million in this segment. Japan came in second with $7 million. The African-American market is expected to exceed $2.5 billion.
How much do men account for in the beauty industry?
The estimated market size of the global men’s skincare industry is $34,979,885, 709.34. The market is growing at 3% per annum and this is the estimate for years between 2019 and 2023. By 2016, it is estimated to hit $16.6 billion says Business Astrologer™ Hirav Shah.
While women between 18 and 33 brought more cosmetics, men between the age group of 25 and 45 splurged on beauty care, more so because of their capacity to indulge.
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