The beauty and personal care markets in the US and Canada are expected to see steady volume growth over the next several years; however, inflation, high prices, and economic concerns will impact the industry in the near term. While premium segments remain strong, the gap between growth in the premium and mass segments is expected to narrow slightly as consumers seek more affordable solutions for their beauty care routines.
While individual categories like cosmetics, skincare, and hair care have their own unique dynamics and trends, several megatrends are impacting the beauty and personal care market as a whole, with a focus on wellness, sustainability, and technology.
The pandemic shifted consumer attitudes and behaviors, and there remains a continued focus on holistic health and prevention. This has led to the blurring of category lines and the development of hybrid products that combine physical, nutritional, mental, and emotional benefits and wellness experiences. Beauty and personal care categories are increasingly overlapping with other industries, especially consumer health. Skincare brands are introducing ingestible products that promote healthy skin from within, and there is a heightened awareness of the interconnections between the skin, oral, and gut microbiomes. Dermocosmetics are performing well, and the skinification trend is impacting multiple categories - including hair care, sun care, and deodorants - where common skincare ingredients like hyaluronic acid, collagen, and retinol are popping up with new functionality.
Brands are expanding, and product and packaging formats are evolving to keep up with these changes. The hair care aisle now includes serum bottles and masks. Oral care now has whitening wands and supplements. And deodorant brands are introducing cream-based products. A wide variety of pack formats are being used in new ways across categories.
The majority of global consumers cite "looking healthy" as what beauty means to them. (Euromonitor)
The conversation around women’s health has been gaining momentum over the past several years. This is driven by the desire for female empowerment and gender inclusivity, the destigmatization of previously taboo topics, and an increased focus on holistic wellness. There is growing recognition of the changing physical, nutritional, and emotional health needs across the different female life stages.
Beauty and personal care brands are developing wellness solutions that target the various phases of a woman’s life, from puberty to pregnancy to menopause. For example, a greater understanding of how hormonal imbalances impact skin and hair is leading to targeted solutions for menopausal health. The trend toward personalization has also led to tailored products that celebrate women’s differences and help them feel empowered.
44% of global female consumers are looking for new solutions to prevent or treat women's health issues. (GlobalData)
While consumer interest in beauty and personal care ingredients isn’t new, it is evolving with a new take on “clean and conscious” beauty. The momentum of wellness, sustainability, biotech, and global consciousness themes is influencing the ingredient-led trend. In addition to avoiding certain ingredients like sulfates and parabens, there is a newfound focus on the benefits of specific ingredients, with growing interest in international ingredients and global beauty concepts like Ayurveda and K-beauty.
Eco-conscious consumers want sustainable sourcing and safer ingredients. A spotlight is being placed on bioengineered ingredients with “green chemistry” expected to influence new ingredients, focused on eliminating hazardous substances and adding or replacing them with bio-based ones. On-pack ingredient information, benefit callouts, and formulation transparency can help build consumer trust and
54% of North American consumers say they pay a high amount of attention to ingredient lists. (GlobalData)
Today’s consumers are increasingly incorporating digital tools into their everyday lives, and technology is penetrating the beauty and personal care market in new and innovative ways. Consumers are watching online videos and tutorials to learn more about the products they’re buying and using AI virtual “try-on” tools to find the best options for their unique beauty and personal care needs. People continue to shop online, with e-commerce now accounting for more than a quarter of beauty and personal care retail value sales in the US. And the development of interactive and “smart” packaging solutions is enhancing the consumer purchase experience. QR codes are being used to provide ingredient information, display messaging about a brand’s values and sustainability practices, and redirect people to
a company’s website for additional content, promotions, and interactive experiences.
Berlin Packaging | Premi Industries developed award-winning custom packaging for Ninu Perfume, the world’s first AI-enhanced sustainable smart perfume. The bottle allows the user to create 100 bespoke fragrances based on their mood, activity, and olfactory preferences by replacing and recycling the three interior scent cartridges while reusing the premium outer container.
42% of global consumers are always or often influenced by how digitally advanced or 'smart' the product or service is in 2022. (GlobalData)
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The brands mentioned in this report are trademarks of their respective owners. Inclusion of these brands in this report is not meant to imply an association with or endorsement from the respective trademark owners.