Five Beauty Industry Growth Trends & Takeaways
Here at FACTEUR PR, we’re all about championing emerging and established beauty brands with public relations, marketing and social media efforts. And as we’ve immersed ourselves in research for our clients, we’ve come up with some interesting finds regarding today’s beauty landscape. If you’re behind a beauty-focused brand or looking to enter the world of cosmetics, we’ve got you covered with a few news items you won’t want to miss.
The COVID-19 pandemic did a number on small businesses, but according to a study by The NPD Group, the market is actually seeing a prestige beauty rebound. For example, the second quarter of 2022 saw U.S. prestige beauty sales hit six billion dollars — which comes out to a 16% increase versus 2021’s second quarter. In fact, according to Larissa Jensen, beauty industry advisor, beauty is the sole industry with rising sales units across 14 discretionary retail industries tracked by NPD.
Let’s drill down the numbers by industry a little further:
Makeup sales: Although sales on cosmetics are lower than the pre-pandemic numbers of 2019, the makeup industry did surpass sales in 2019’s second quarter by 1% in this year’s same period. In fact, lipstick revenue increased by 28% in quarter two of 2022 — from January to June, lip products were the fastest growing segment in makeup.
Tip: Lean into the current trends with lip products and market yours heavily using Instagram story ads — they may be quite effective in your target demographic, and smaller, more accessible products are much more tempting to quickly add to cart. Make sure your e-commerce platform is affiliate-compatible!
Fragrance sales: Fragrance has seen quite the jump, with $1.5 billion — a 13% increase — in sales during 2022’s second quarter. In examining prices from three years ago, the average price is currently 25% higher now than it was then. Just in quarter two, prices leapt by 6% — double the rate of the rest of the beauty industry. And for Mother’s and Father’s Days this year, gift sets made a big comeback, which could indicate similar purchases around the upcoming holiday season.
Tip: Working with influencers is key in the this space! Try getting in touch with micro-influencers first — these accounts typically range between those with roughly 1,000 and 50,000 followers. Generally, they tend to have higher engagement rates than the megainflueners and will likely generate a lot of buzz with your code.
Skincare sales: The industry rose to $1.7 billion in 2022’s second quarter for a 12% increase overall. And although we hear a lot about facial skincare online, it is actually body care products that have maintained a lead in terms of sales growth. According to Jensen, brands are improving constantly, using ingredients such as retinol, vitamin C and algae — elements all found in traditional facial products. This quarter two, sunscreen sales also increased by 51% compared to 2021.
Tip: When positioning your skincare brand in front of the media, lead with the benefits, including the most innovative and impactful ingredients. If they do double-duty, call that out as well. Everyone loves a 2-in-1!
Haircare sales: Although the smallest industry in beauty, this category is growing the quickest. Sales this quarter were $781 million, representing a 24% increase from last year. In fact, in the first half of 2022, clean hair brands dominated the landscape, taking up about one quarter of hair care purchases. This indicates a five-point gain from the same time in 2021. Consumers are spending more on higher-priced, luxury items in this sphere.
Tip: Reconsider your pricing – customers are willing to pay for good hair care if you’re in the industry — but offer quality, specific sales people can access through subscribing to your email newsletter. Collecting emails creates a built-in followership to direct messaging to throughout the year as well.
Aesthetic services: Service-based beauty providers are seeing growth, too! According to a study by BeautyEngine, 68% of aesthetically conscious consumers answered that they schedule consultations with two to three providers before making surgical or aesthetic treatment decisions. Interestingly, 74% of patients thoroughly research their provider’s credentials on multiple platforms before booking. Only 3% use social media to vet potential matches. Lastly, 79% of respondents said before and after reviews from former clients matter. Written reviews tend to hold more weight than photographic ones, although both hold weight.
Tip: Encourage past and present clients to leave reviews on your Google My Business or in an email so you can utilize them for website content. Testimonials are incredibly important for garnering a good reputation in the aesthetics community — the more you can collect from patients with success, the better.
Key takeaway: In uncertain economic times, consumers are willing to put things like Netflix subscriptions on hold. But their beauty routine? Not so fast.
FACTEUR PR specializes in beauty, skincare, personal care, and fragrance marketing and PR. Learn more about working together and request a complimentary call with our team to see if we can help move your brand to the next level.
