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PRO - 2030 Beauty Trends - Ebook - v2

COVID-19 has accelerated existing trends in the beauty and personal care industry towards greater sustainability, ethics, and science-based practices. This is leading the industry to a future where brands must address shifting consumer values around wellbeing, nature, technology, human rights, experiences and identity to survive in an increasingly competitive market. Consumers now expect brands to support environmental protection, social justice, and transparency in addition to effective products.
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0% found this document useful (0 votes)
253 views21 pages

PRO - 2030 Beauty Trends - Ebook - v2

COVID-19 has accelerated existing trends in the beauty and personal care industry towards greater sustainability, ethics, and science-based practices. This is leading the industry to a future where brands must address shifting consumer values around wellbeing, nature, technology, human rights, experiences and identity to survive in an increasingly competitive market. Consumers now expect brands to support environmental protection, social justice, and transparency in addition to effective products.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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2030

beauty trends
accelerated after
COVID-19
Leading the BPC industry
to a more ethical,
science-based future
Content
01. Introduction

02. The consumer behavior transformations


that BPC brands must address

03. What has shifted in the BPC market


after COVID-19?

04. What brands can do: top tips to stay relevant


after COVID-19
01. Introduction
2030 beauty trends accelerated after COVID-19, leading the
BPC industry to a more ethical, science-based future

COVID-19 has impacted every single aspect of consumer lifestyles. From the
global economy to the psychological factors that arise from uncertainty and
distress, people around the world have experienced a shift in their lives with
no recent precedents.
This lifestyle shift has naturally translated into changes of behavior, including
consumer behavior.
On top of that, this sanitary and economic crisis has come at a time of great
transformation in every industry, but also specifically in the beauty and
personal care market.
In short, it could be said that there were two main trends already shaping the
BPC market before COVID-19:
3 • Technology and communication: before 2020 and COVID-19, brands were
already reshaping the way they communicated with consumers due to the
rise of digital technology. Companies had been changing towards a new
more social paradigm, where a two-way interaction between client and
company was the new rule.
• Sustainability and brand ethics: for a while now, consumers have been
more aware of climate change and the impact that different economic
activities have on the environment.
This has made brands rethink their strategies in the search for new, more
sustainable ingredients and processes that appeal to environmentally aware
consumers. This transformation has conveniently blended with the natural
and organic beauty trend.
Besides, company ethics related to worker rights or animal welfare have
also been put on the spot, and brands have been looking for new formulas
to respond.
In order to transmit company efforts in sustainability and ethics, a new
transparency approach has been adopted by many BPC companies, in
beauty claims and beyond.
COVID-19 has taken these two transformations and amplified them,
2030 beauty trends accelerated after COVID-19, leading the

accelerating the pace at which BPC brands must react to them in order to
survive in an increasingly competitive market.
BPC industry to a more ethical, science-based future

In addition to this, COVID-19 has brought new attention to science. Today,


health (both mental and physical), nature, and sustainability combine to form
new consumer demands for BPC companies.
In short, the post-COVID-19 world is seeing how the connection to beauty
and personal care brands is not only built around beauty standards and
effective treatments, but also environmental and ethical factors.

4
02. The consumer-
2030 beauty trends accelerated after COVID-19, leading the
BPC industry to a more ethical, science-based future

behavior
transformations
that BPC brands
must address
Technological changes and environmental trouble were already shaping a
new BPC landscape before COVID-19. These were not transient trends but
were rooted in deep transformations that have altered consumer values
5
and lifestyles.
First, there are a few new consumer values detected by Mintel on their
‘2030 Global Consumer Trends’ that had been shaping the BPC market:
1. Wellbeing: consumers are demanding products that enhance their physical
and mental wellbeing. This new approach, where both mind and body are
interconnected, leads to new BPC claims that might also explore concepts
such as de-stressing products.
2. A connection to nature: feeling connected to the external environment
is increasingly important to consumers. This is, in part, responsible for a
renovated interest in natural and organic ingredients and products.
3. New technology: consumers are more and more used to looking for
solutions to their needs using technology. This also includes the shift in
communication with brands, where a two-way approach is now preferred.
4. Human rights: rights for minorities, the end of racial injustice and a
renovated interest in feminism are again on the spot. Consequently,
consumers are interested in brands that support equality and human rights
in a tangible and verifiable manner.
5. Value: clients are looking for companies that can provide them with value
2030 beauty trends accelerated after COVID-19, leading the

and meet their needs in a satisfactory way. This includes all customer
experiences, from product research to post-sale support.
BPC industry to a more ethical, science-based future

6. Experiences: consumers are willing to place more value on experiences


and new discoveries. In other words, products must be designed to inspire
consumers and generate full emotional experiences beyond the physical
items.
7. Identity: with a higher sensibility towards economic and social equality,
it’s become important for consumers to feel related to products by being
able to generate their own identity through them and build a sense of
community surrounding them.
These values can then be observed in the following tangible consumer
behaviors:
1. The relationship between brands and consumers has switched: more
control is given to consumers, mainly through digital tools, to let brands
know what they demand and prefer.
In fact, it’s only through transparent and clear-cut communication that
6 brands are building trust these days.
2. Consumers react to personalized solutions and experiences that amplify
personal identity and values.
In fact, certain demographics such as Gen Z (born between 2000 and
2012) place great value in personal care and appearance: 74% (1) of
Gen Z consumers in the UK believe the way they present themselves is
fundamental to who they are.
At the same time, identity is deeply rooted in belonging to a community:
86% (2) consumers in India agree that it is important for them to feel part
of a community.
In order to provide value to consumers with these new sensibilities, brands
must make an effort to generate new narratives around identity that
provide a sense of community.
At the same time, companies can use data gathered by technology as a
powerful tool to cater to consumers’ individuality.

(1) Source: Lightspeed/Mintel; Dynata/Mintel cited in 'How COVID-19 acceletared the 2030 BPC trends' (2020)

(2) Source: Lightspeed/Mintel; Dynata/Mintel cited in ‘How COVID-19 acceletared the 2030 BPC trends’ (2020)
This translates into beauty products that can now be targeted to specific
2030 beauty trends accelerated after COVID-19, leading the

lifestyles and behaviors (for instance, formulas that help prevent damage
caused by pollution on hair or skin, targeted to urban consumers).
BPC industry to a more ethical, science-based future

3. Science and sustainability are now aligned in consumers’ minds so that


products can offer effective solutions to their needs and be sustainable at
the same time.
This can be perceived in several demands for beauty and personal care
products, including the request for brands to be transparent about the
carbon footprint their products generate.
Tracking the carbon footprint of a product is a measure that will be
getting more attention from consumers in the next few years, as it reflects
objectively a product’s impact on the environment as a whole: from its
production to its distribution and supply chain, including packaging.
As a reaction to this demand, some retailers are allowing clients to track
their grocery shop’s carbon footprint through an app and compare it.
This effort in transparency is rewarded by the increasingly eco-conscious
consumers.
7 This combination of science and sustainability will culminate in a new
focus on biotechnology as the answer for consumers demanding natural
and ethical beauty and personal care products.

Anticipated Changes to Consumer Sustainability Behavior 2020

Increase demand for sustainable


ingredient formulations

Increase demand for recycled,


recyclable packaging

Increase demand for carbon-


neutral products and production

Increase demand for refill options

Increase in attention paid


to social purpose

Decrease in demand for


second-hand products

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Respondents

Short-term change only (2020) Mid-term change, but will eventually return to pre-crisis norms

Permanent change No change

Source: Euromonitor International Voice of the Industry: Beauty and Personal Care survey, October 2020, N=961
4. Finally, these eco-ethical claims must be communicated in a transparent
2030 beauty trends accelerated after COVID-19, leading the

and honest light. It’s also important to reinforce the positive steps that
brands are taking to protect the environment, eliminating negative claims
BPC industry to a more ethical, science-based future

or marketing that might put off consumers.


In order to meet this transformation in consumers’ values and behaviors,
brands are devising new ways to respond, with the Asiatic BPC market at the
forefront.
This answer must take the form of long-term strategies that are able to
steadily lead companies to respond to these permanent changes in lifestyle
and consumer behaviors.

8
03. What has shifted
2030 beauty trends accelerated after COVID-19, leading the
BPC industry to a more ethical, science-based future

in the BPC market


after COVID-19?

Along with the previously mentioned long-term changes that had been set in
motion for the past years, a new set of transformations were prompted by the
health crisis caused by COVID-19 and all the social and economic adjustments
that were made in order to halt its spread.
New priorities have taken place in people’s lifestyles and mindsets,
9 translating into specific consumer behaviors and values that accelerate the
transformations observed in the last few years.
These new trends can be summarized into 3 key movements that beauty and
personal care brands must follow closely:

1. A new meaning for


digital communications
COVID-19 and the ensuing preventive measures taken (such as nationwide
lockdowns and social distancing) have meant lives and social encounters have
migrated to online communication to a great extent. This is true for social and
personal encounters, but also for communications and transactions between
companies and clients.
While this shift towards online retail was already taking place before
COVID-19, the health crisis accelerated it.
2030 beauty trends accelerated after COVID-19, leading the

A couple of stats serve as testimony: on the one hand, the Online Retail
BPC industry to a more ethical, science-based future

Results report by IMRG Capgemini observed that online sales grew 74% in
January 2021 compared to January 2020, just in the UK. On the other hand,
McKinsey found that, during the first quarter of 2020, the rate of eCommerce
penetration in the US grew by 10 years in a 90-day period. This now means
that around 33% sales in the US are online.
Shifts in Sales Channels 2020

Travel retail
Salon and spas
Department stores
Beauty specialist retailers
Tradicional grocery retailers
Mass merchandisers
Direct selling
Drugstores/parapharmacies

Modern grocery retailers


Chemist/pharmacies
Internet retailing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10 Respondents

Lost share Stayed the same Gained share

Source: Euromonitor International Voice of the Industry: Beauty and Personal Care survey, October 2020, N=1,037

Traditionally, the BPC market had been slow to incorporate e-commerce


strategies (11% of sales). However, countries such as China or Germany could
see a huge rise in online sale channels. Traditional drugstores will continue
to play a big role in the BPC market, and could also leverage their earned
trustworthiness by boosting their digital strategies.
This has important implications for brands in the BPC market.
Firstly, it means brands must be ready to meet clients and leads online,
devising powerful digital strategies that connect with them and facilitate
their online shopping and experiences.
Secondly, at-home treatments and alternatives are preferred by health-
aware consumers: 62% (3) of consumers in Brazil express some level of
discomfort related to getting beauty treatments outside of their home.
Thirdly, social media channels must be used to connect with potential
2030 beauty trends accelerated after COVID-19, leading the

clients in an honest way, taking into account the new promotion


opportunities that these channels present.
BPC industry to a more ethical, science-based future

To sum up, digital communications in the post-COVID-19 world only thrive


by offering authenticity, transparency, and proximity.
This type of communication presents a huge opportunity, but beauty and
personal care brands must be sure to overcome the abundance of digital
information with relevant and inspiring content for their audiences.

2. Science and health,


seen on a new light
In the midst of the affluence of information and often contradictory
data, science has been, for many, the reference point from which to draw
trustworthy information.
11
At the same time, the sanitary crisis has meant that health and wellbeing
have been put in the spotlight and taken a new meaning. In fact, this new
light on wellbeing also includes mental health, with many people stating it
as a new priority. For instance, in the United States, 59% (4) of women aged
between 18-34 agree that mental wellbeing has become a higher priority
since the COVID-19 outbreak.
For the BPC market, this means success for brands that manage to connect
consumers’ demands for science-based claims that also provide a clear-cut
narrative about their health benefits, both for mind and body.
Key Innovation Tactics in Post-COVID-19 Era
2030 beauty trends accelerated after COVID-19, leading the

Green, clean and natural features


BPC industry to a more ethical, science-based future

Digital engagement
Focus on hygene, prevention, protection
Ethical products and brands
Health-inspired beauty/therapeutics
New formulations
Wellness beauty
New ingredients
Alternative distribution models
New packaging sizes
New packaging functionality
Inclusivity
Personalised product experiences
Product portability
Personalised products
DIY/product alternatives
Changing textures
0% 20% 40% 60%
Respondents
Source: Euromonitor International Voice of the Industry: Beauty and Personal Care survey, October 2020

Future innovation lines will be focusing on digital platforms and product


formulations that generate trust. Health and safety will become central
for every business, with anti-viral and immunity-associated benefits being
12
promoted. Meanwhile, as emotional and mental health gain notoriety,
branding and communications will embrace champion wellness from a
holistic angle.
3. The relevance
2030 beauty trends accelerated after COVID-19, leading the

for sustainability,
BPC industry to a more ethical, science-based future

ethics and worker rights


Along with the sanitary crisis, 2020 also saw citizen movements gaining
traction, especially those seeking racial and environmental justice, and
worker rights.
As the sanitary crisis uncovered social and economic inequalities, the
conversation around each company’s responsibilities for their processes to
be fair and sustainable was put in the spotlight.
Consumers are increasingly aware of company practices and their impact
on people and the environment, rewarding brands that make an effort to
make sure they promote equality and sustainability.

Sustainability Meaning for Businesses


13 Pre-COVID-19: 2019 Pre-COVID-19: 2020

Reducing impact on the environment Reducing impact on the environment

87.3% 88.5%

Energy saving processes of production Achieving the Sustainable Development Goals NEW

63.6% 69.1%

Supporting local communities Supporting local communities

51.4% 65.8%

Working with environmental/welfare associations Energy saving processes of production

49.8% 63.6%

% of respondents Working with environmental/welfare associations

53.4%

Supporting employees NEW

51.4%

Being a purpose driven business NEW

49.7%

Supporting suppliers and other business partners NEW

48.6%

% of respondents

Source: Euromonitor International Voice of the Industry: Sustainably, surveys


Note: 2019 survey (May 2019; n=556) and 2020 survey (June 2020; n=1,017)
While sustainability was prioritized by many companies prior to COVID-19,
2030 beauty trends accelerated after COVID-19, leading the

this 2020 survey shows how this issue is now considered from an extended
point of view: working conditions, suppliers, and local communities are now
BPC industry to a more ethical, science-based future

also considered part of the conversation.


For instance, two-thirds of companies now include “supporting local
communities“ in their definition of sustainability, a 15% increase from the
previous year.
Combined with the scientific and healthy trend seen above, the BPC
market has seen how these two tendencies coalesce in the “clean beauty”
movement. This concept is now evolving to include not only hygienic and
healthy claims but also an eco-friendly and ethical perspective.
In fact, this transformation for the “clean” beauty products has already
made an impact, with 83% (5) of consumers in China agreeing that clean
beauty products adhere to higher standards in research and development.
Trust, safety/hygiene, and mental health are top priorities globally as
consumers gravitate toward brands and products that meet these needs and
offer reassurances.
14
04. What brands
2030 beauty trends accelerated after COVID-19, leading the
BPC industry to a more ethical, science-based future

can do: top tips


to stay relevant
after COVID-19
1. Attract consumers
through digital beauty
15 Consumers’ new high regard for health and safety provides a great
opportunity for beauty and personal care brands to engage with them.
On the one hand, it’s essential for companies to reassure clients that shopping
is safe, whether this is done in a physical location or online. In this respect,
here’s an opportunity as well to develop and promote new products and
formulas that aim to generate a true beauty and personal care experience at
home, for consumers who are practicing social distance.
On the other hand, brands must make sure that every customer experience
remains convenient and adds value to clients.
In order to do so, some brands are experimenting with technological
solutions. For instance, some Artificial Reality and Virtual Reality apps are
getting more attention in the post-COVID-19 beauty market, adding a sense
of novelty and letting people try on new products or services conveniently
and at home. For instance, skincare brands have launched an app that allows
users to analyze their skin condition and recommend the best treatment,
using Artificial Intelligence to predict future conditions or troubles.
Finally, it’s essential that brands learn to use technology to its fullest
potential, building a truly comprehensive online relationship with their
clients, via digital marketing and sales strategies. The next few years will see
omnichannel strategies gain traction, again making easy and frictionless
customer experiences a priority.
2. Rebuild trust through
2030 beauty trends accelerated after COVID-19, leading the

expert voices and


BPC industry to a more ethical, science-based future

science
A brand’s honesty and expert authority are key factors in the post-
COVID-19 world. Consumers’ key values have been altered after this sanitary
crisis, while other long-term factors mentioned above have made the focus on
science and transparency a key factor for clients to trust a brand.
In a way, consumers are looking for transparent and authentic BPC companies
that are clear about their product claims and processes. A brand that
provides effective, science-based results and brings experts to the forefront
will be more likely to avoid online criticism and crisis and, instead, build
lasting relationships with loyal clients.
In a world where fake news and information overload abound, brands
must take the lead to display true expert voices and scientifically proven
16 information and make an effort to communicate this in a clear manner.
Credibility can thus become a company’s biggest asset.
It’s however important to be able to convey a scientific and authentic message
while also focusing on the positive attributes of a product or company. Brands
must stay away from negative marketing and make sure they’re able to
communicate how their products are a solution to consumers’ needs.
There are many ways technology is helping brands communicate their
science-backed facts and give voice to their experts.
For instance, one particularly effective strategy has been developed by some
brands, offering personalized virtual consultations for clients and prospects,
who can pose their questions to a brand’s sales team and experts.
This strategy manages to combine consumers’ new interest in hearing about
scientific claims, their need for connection through technology, and their
demand for personalized content that caters to their specific needs.
3. Create a community
2030 beauty trends accelerated after COVID-19, leading the
BPC industry to a more ethical, science-based future

Social distancing, anxiety over health and security, and lockdown measures
have taken their toll on a physical and emotional level. As a reaction,
consumers are now more than ever looking for connection and belonging to a
community, as highlighted in Mintel Trend Driver Identity.
In fact, beauty and personal care products have become part of people’s
identities, where consumers look to control how they present themselves to
the world. BPC products can also enable the creation of communities and
belonging, the “clean beauty” movement being an example of this.
In order to generate this community and sense of belonging, brands must
be willing to originate memorable experiences that speak directly to their
clients’ emotional needs.
Thanks to technological innovation, the idea of community has expanded
and can now exist in the digital world. In fact, during lockdown periods, the
most successful brand strategies have involved companies taking the lead into
creating communication opportunities.
17
This is in part why the ever-present live streaming events have been
successful: they fostered communication between consumers and brands
(including influencers), but also among clients themselves, in open discussions
and comments.
But communities can also be built offline, taking all necessary precautions
in a safe environment, while also generating exclusive and memorable events
that take customer experience one step beyond.
Finally, communities can also be defined by the possibility of being
entertained together. In this context, the generation of dynamic, interactive
online content will gain traction in the next few years.
Platforms such as Shoploop from Google offer an idea of what this looks like:
users can discover new beauty and personal care products by watching short
videos. They can then share, save or directly purchase the product.
4. Take the lead in ethics,
2030 beauty trends accelerated after COVID-19, leading the

sustainability, and safety


BPC industry to a more ethical, science-based future

Ethics and sustainability have been at the center of consumer purchasing


habits and decision-making for years, and the post-COVID-19 world will see
this interest grow and mature.
Brands must continue to invest in transforming their processes in order to
respond to this worldwide consumer demand.
This transformation must be conceived around two axes:
• Research and incorporate natural, ethically sourced ingredients that
provide scientifically proven results.
• Rethink internal processes, from worker rights to a logistic chain that
takes sustainability into account.

18 Percentage of Respondents That Consider COVID-19


Has Accelerated or Delayed the Following Sustainability Initiatives

Accelerated

Pollution 5.0%

Water 5.5%

Energy 10.4%

Green technology 8.7%

Sustainable sourcing 13.9%

Waste 11.4%

Recycling 15.5%

Development/launch of sustainable products 15.9%

Employee support programmes 36.9%

Supply chain resilience 9.2%

Clean technology 7.8%

Forest and biodiversity protection 4.5%

Source: Euromonitor International Voice of the Industry: Sustainably Survey, 2020


Note: Fielded in June 2020.
Both employee support programs and supply chain resilience have been
2030 beauty trends accelerated after COVID-19, leading the

enhanced during and after the pandemic. In fact, between 2020 and 2025,
71.1% of companies plan to invest in supporting employee programs, while
BPC industry to a more ethical, science-based future

41.1% will invest in supply chain resilience, according to the Voice of the
Industry: Sustainability Survey, 2020.
Packaging is at the forefront of this discussion, with many consumers now
being reticent to plastics or an excessive package.
Companies must research and redesign their packaging in order to obtain
safe, hygienic, and eco-friendly solutions. Later, this must be conveyed in an
efficient and transparent way to consumers, including the now ubiquitous
and easy-to-understand measure of carbon footprint, which already
differentiates brands and their efforts for sustainability.
But sustainability goes even further and makes companies rethink their
processes in a new, creative light. For instance, some brands have created
unique algae-based products that are grown and produced upon clients’
orders, eliminating excessive stock.

19
Considering all
these factors...
...many would argue that there’s a new, exciting time ahead for the BPC
industry.
At the heart of the next few years in the market lies an unparalleled
opportunity for product innovation, with new values that are beyond
transient trends and will see those brands creative enough to adjust thrive.
www.weareprovital.com

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