mac cosmetics market share 2020

Moreover, how are online sellers capturing market share from brick-and-mortar retailers? TikTok, in particular, is a massive opportunity for brands, driving viral sales and reshaping consumer preferences. The company raised a $4M seed round in May 2021. With ever-increasing online sales, digital marketing is increasing in importance to beauty brands. Request a Free sample to learn more about this report. CPG incumbents are also making moves. Historically, many products allowed for only a limited range of skin tones. With the rising awareness of harmful chemical ingredients on ones health and the environment among consumers, their buying behaviors have shifted to organic products. China-based tech giant Alibaba offers livestreaming and AR features which it has used to attract luxury beauty brands to its e-commerce platform. In 2019, the company launched in-app checkout for shoppable posts and has since rolled out features such as augmented reality shopping, in-app reminders for new product drops, and even shoppable videos expanding its e-commerce role for beauty products being promoted by brands and influencers. Last year, LOral launched Perso, its AI-powered device to formulate and dispense personalized skincare, lipstick, and foundation. These stores offer a variety of products to consumers and every individual has the liberty to validate the genuineness of the product. At The Innovation Lab, consumers no longer have to swatch foundation shades endlessly, checking in-store and outdoor light before making a purchase. Increasing awareness toward personal grooming is accelerating market growth. This growth in online purchasing was already occurring prior to 2020, and the COVID-19 global pandemic greatly accelerated it. From waterless beauty products to virtual try-on, here are the trends and tech that will continue to transform the sector in 2021 and beyond. Nail care is also increasingly coming out of the salon and into the home. Uniquely, The Innovation Lab is the integration of the best of both digital and retail worlds coming together for an AI beauty encounter. For instance, a 2020 study by the National Library of Medicine stated that the use of cosmetics harms the human skin and can lead to pigmentation and skin problems as some of these substances could also have harmful, irritating, and allergic effects on human health. Since then, Western shoppers have clamored for Korean beauty products, with items like sheet masks and snail cream becoming commonplace in beauty stores. It goes far beyond making sure ecommerce pages are optimized, although that certainly matters. Furthermore, biosynthetic ingredients can mean cost savings for companies down the line, including reduced transport costs, lower supply chain risk, and decreased emissions. Gen Z-focused brands such as UK-based Plenaire and Bubble have also been on the rise. This also helps in increasing revenue of companies operating in this industry. Countries around the world imposed lockdowns, and curfews, which has hugely impacted lifestyles, health & wellbeing, and affected manufacturing industries. Touch device users, explore by touch or with swipe gestures. Urban offers on-demand outdoor fitness, osteopathy, and physiotherapy services in addition to massages and nail care. The U.S. Accounts for Over 27.1% of Global Market Size in 2020, While China is Forecast to Grow at a 9.9% CAGR for the Period of 2020-2027 The Color Cosmetics market in the U.S. is estimated at US . 7 Proven Business Growth Strategies that Work (+ Examples), How Byrdie Toppled Billion Dollar Beauty Brands (Without Ads), Organic Growth 5 Strategies to Drive Sustainable Growth, Download Terakeets Beauty Industry Report, Deodorants, Personal Care Products, Feminine, Interactive tools/apps (like the Fenty shade finder). }); More than a year later, Covid-19 continues to shape the space, but brands are now better equipped to deal with the seismic shift in consumer values and expectations. Customers can book a wide variety of services that would typically require going to a specific location. In makeup, Amazon ranked slightly better in position five. For instance, Aeroscena, which backs its scents with clinical research and also focuses on healthcare applications, has seen its fragrances used throughout select MGM Resorts in their wellness-focused Stay Well suites. Este Lauder purchased a majority stake in Deciem at a $2.2B valuation in February 2021. Japans Shiseido exemplifies the omnichannel approach. Moreover, powdered contents are suitable for oily skin as they help absorb oily residue. MAC Shanghai custom 3D prints eyeshadow palettes for customers, for example, while Shespoke has developed software that allows it to manufacture custom-mixed lipsticks at scale. Moreover, use of natural ingredients for manufacturing of cosmetics products, which does not have any adverse effect on skin, is a popular strategy of manufacturers to attract more customers. Our design target for our Sunday II Sunday brand is the multicultural woman, but products are still great for all women, which is where we started at.. Recycling models are also being adopted, such as those by early pioneers of the process MAC Cosmetics and Lush, both of which allow consumers to return empty product containers (to be recycled) for free items. And new in-store pickup options connect the online and offline shopping experiences. At what CAGR is the market projected to grow in the forecast period (2022-2029)? In 2020, retailer Revolve, for one, saw more deliberate purchasing behavior by consumers during the Covid-19 pandemic as well as a Covid-19-driven shift to product categories with lower price points and lower return rates, such as beauty, and away from occasion wear.. For example, Hims & Hers offers telehealth consultations and prescriptions for a broad array of health issues ranging from infections to mental health, but its services also extend to anti-aging creams and haircare products. Below we outline a few of these markets, which are becoming integral to defining the future of inclusive beauty and that should remain a high priority for brands looking to capitalize. Baby care brand Mini Bloom was launched in December 2020. Download Terakeets Beauty Industry Report to see which brands are winning (and losing) in Google organic search market share. In 2021, the beauty industry is taking with it many learnings and permanent shifts from the past year. MAC doesnt claim to have anticipated an atmosphere of heightened germ-awareness, despite their concept store lending itself to a more touch-free experience. When done effectively, it enables brands to own both the top sponsored and organic spots in search results, which translates into a significant amount of site traffic. DOWNLOAD THE FULL REPORT BELOW And with a further emphasis on health and wellness, beauty brands have had to evolve from a one-dimensional category to something more holistic and inclusive. On the business front, using ingredients that are mined or farmed introduces potential supply chain volatility, given the quantity of vendors, farms, and fisheries that have to be involved in supplying ingredients, while synthetic ingredients are made in more controlled environments that can offer consistency. When we zoom in to examine 109 product-related keywords within the Skincare market (which represent 4.64 million annual Google searches in the U.S.), six of the top 10 Google search results are publishers or blogs. The region is anticipated to experience a significant growth in the coming years, owing to the rise in the young population along with their rising consumption of branded beauty products. With an annual growth rate of 4.75%, total revenue is expected to top $716 billion by 2025. Companies like Deciem are using transparent pricing models and established, science-backed ingredients that are cheaper to manufacture ultimately driving the price of products down. A. hbspt.forms.create({ Amazon, Apple, and Google all offer voice-enabled smart speakers and have designs on deeply integrating their virtual assistants into peoples home lives. How can marketing managers create WOM buzz around their products? We cater to it all., MAC COSMETICS INNOVATION LAB QUEENS CENTER. Aug 24, 2022. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information A look at how skincare valuation multiples are faring. In beauty retail, virtual try-on tech serves a dual purpose: combining both augmented reality and computer vision, it allows shoppers to virtually test out different looks, while simultaneously collecting behavioral data for brands. When autocomplete results are available use up and down arrows to review and enter to select. Looking ahead, expect functional fragrances to be incorporated into more beauty products and categories, including experiential beauty offerings such as spas and wellness hotels. The collection includes MultiDew Skin Tint and Soft Radiant Bronzing Powder. Sephora further deepens the engagement by offering Groups of like-minded individuals. On the basis of gender, the women segment led, in terms of the cosmetics market size in 2019, and is expected to continue to grow with robust CAGR during the cosmetics market forecast period. Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. Social commerce already accounts for almost 12% of online sales in China . Despite their momentum, companies tying beauty to overall well-being face challenges around perceptions of effectiveness and trust. On the basis of distribution channel, it is categorized into hypermarkets/supermarkets, specialty stores, pharmacies, online sales channels, and others. The growing awareness of consumers toward personal grooming is driving the demand for makeup products. Moreover, the cosmetics market across the globe has witnessed continues and sustained growth over years, owing to rise in beauty-conscious female population. Moreover, cosmetics products have witnessed prominent adoption in the developing countries such as India, owing to swift change in consumer lifestyle, increase in disposable income, and surge in need for cosmetics products derived from natural extracts. Today MAC Cosmetics is one of the top 3 most profitable global makeup brands. The research report analyzes the industry in-depth and highlights crucial aspects such as prominent companies, product types, and sales channels. Nowadays, self-care has become an integral part of a daily routine for a large number of individuals as it enables highlighting facial features such as eyes and lips and thereby provides an efficient method for grooming. However, they still lag behind many publishers, blogs, and even health-related websites, depending on the type of keyword. Available: https://www.statista.com/forecasts/1241179/mac-cosmetics-beauty-and-health-brand-profile-in-the-united-states, Mac Cosmetics brand awareness, usage, popularity, loyalty, and buzz among beauty and health online shop users in the United States in 2022, Immediate access to statistics, forecasts & reports, Find your information in our database containing over 20,000 reports. ET by Tomi Kilgore. As the beauty industry becomes more tech-enabled, opportunities for big tech companies to monetize their data, platforms, and devices will only increase but, even as partnerships abound, they may eventually find themselves competing more directly with increasingly tech-savvy beauty incumbents. As a culture, we are realizing that gender is no longer a fixed concept, said Sam Cheow, senior vice president of corporate innovation and product development at the Este Lauder Companies, in an interview with Harpers Bazaar. to provide the most effective ingredients for users. After seeing the success of independent players such as vertically integrated incubator Seed Beauty, which is behind ColourPop, Kylie Cosmetics, and more big beauty corporates have followed suit with their own incubators and accelerators, with examples including: LOrals Seed Phytonutrients and Unilevers Skinsei are just a few examples of internally incubated brands. An effective SEO strategy allows companies to connect with and serve more people at each stage of the purchase funnel. Profit from the additional features of your individual account. The approach is already popular in Asia, but it has started to make inroads in markets like the US. Beyond incubators and accelerators, big beauty has been busy with a slew of acquisitions over the past year to expand customer acquisition channels, such as influencer marketing or better e-commerce infrastructure, and double down on burgeoning trends like natural beauty, including: New opportunities are also opening up for beauty brands looking to exit. statistic alerts) please log in with your personal account. opens in a new window Click Here. The brand also has over 500 stores globally. According to DECA, 80% of female teens said they were willing to spend more for clean beauty. Rising Awareness Regarding Adverse Effects of Chemical Formulations to Hamper Product Sales. Who are the major players operating in the market? Education will continue to be key as brands lean into transparency around both natural and synthetic ingredients to prove their safety and efficacy. Pandemic disrupted the entire world and affected many industries. Perfect Diary dropped an eyeshadow collaboration with the Metropolitan Museum of Art in 2019 and signed Australian singer Troye Sivan as an ambassador. Cosmetics & Personal Care Products Direct Selling Market, https://www.fortunebusinessinsights.com/makeup-market-102587, Rest of Middle East & Africa (By Product), Granular Research on Specified Regions or Segments, Companies Profiled based on User Requirement, Broader Insights Pertaining to a Specific Segment or Region, Breaking Down Competitive Landscape as per Your Requirement, Other Specific Requirement on Customization. Currently, beauty juggernauts are looking to indie brands to experiment in newer markets and nascent trends. Indonesia, which has the largest Muslim population in the world, offers a, Brazil represents one of the fastest-growing global markets for beauty and personal care. Companies that provide business-to-business (B2B) booking and on-demand platforms for salon and spa services account for 12% and 11% of deals in the industry, respectively. Though theres been a lot of buzz around more effectively targeting people of color in the beauty sector, theres still much to be done. After all, Mr. Pinatel avowed passionately that MAC has always lead in inclusivity.. Governments imposed lockdowns and shutdowns of retail stores, affecting retailers as the epidemic spread across the globe. Because a founder is of color does not mean that their business has to be focused only on people of color, Keenan Beasley, the founder and CEO of beauty incubator Supply Factory Brands, told Glossy. The long-term potential is driven, most notably, by the rise of the middle and upper income classes, as well as by the growing number of senior citizens and growing urban population on the lookout for products that meet their diverse aspirations. It looks quite comprehensive and the data is exactly what I was looking for. Already popular in Asia, the trend of food, supplements, or drinks promising beauty benefits has continued to pick up steam. Presently, rise in awareness about beauty and consciousness are the prominent factors that drive demand for skin care products. Its never been faster to launch or grow a new brand with the proliferation of beauty incubators and growth of e-commerce and D2C channels. Previous perks have included MAC Cosmetics coupons for 25% off storewide and a free gift with orders of $65+. As consumer values and expectations shifted, big beauty corporates and startups alike have been forced to adapt. Face Segment to Dominate the Market Owing to Rising Product Demand. Quizzes are pervasive in the burgeoning direct-to-consumer (D2C) personalized haircare market, which has seen companies emerge across geographies like the US (. As a result, many ecommerce and direct-to-consumer (DTC) brands saw an increase in sales due to the pandemic because millions of people had to shop almost exclusively online. Refill models are being embraced across different beauty verticals. +8% growth in 2021. . Similarly, cosmetics brand Kiko Milano opened a concept store in Italy in 2016 featuring in-store technology from Mercaux. The supermarkets & hypermarkets segment is expected to capture a significant makeup market share during 2022-2029. Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. Much of the beauty livestreaming activity in Asia has been driven by high-profile influencers known as KOLs (key opinion leaders) like Lipstick King Jiaqi Li, who reaches millions of viewers every month. Livestreaming beauty shopping is taking off on platforms like Facebook-owned Instagram and Alibabas e-commerce site. Analyzing a16zs investment strategy in consumer & retail tech: Where did the VC place its biggest bets in 2022? I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive, Please pass on our sincere thanks to the whole team at Fortune Business Insights. What are the product segment? Think about that. It has an annual turnover of over $1 billion and has over 500 independent stores around the world. . Jun 30, 2021. Beauty brands such as Unilever, Este Lauder, LOral, Glossier, and Clinique are nearly invisible in the non-branded organic search landscape across skincare, makeup, and hair care. Start reading instantly.This Report and over 29,716+ more Reports, Available with Avenue Library. 2020 2021/2020 2019 2020/2019 2018 2019/2018 2017 2018/2017 CAGR; . But its place in the beauty world is more secure than ever. At the same time, consumers are increasingly realizing that not all natural ingredients are good for you and not all synthetics are bad. Estee Lauder's MAC Cosmetics brand stands out as the leader in the overall market with a 5.1% share, and lip products at 13%. Moreover, the need for cosmetic products among beauty professionals is projected to foster the demand for the entire market. In November 2020, Perfect Diarys parent company, Yatsen, debuted in a $617M IPO on the NYSE. Brands targeting older demographics will want to focus more on Facebook and Pinterest. It launched a private label beauty brand called Belei in 2019 and recently invested in India-based D2C beauty site MyGlamm. Privacy Policy. These generated 832,980 impressions and reached 314,170 users. (For more, read our brief on How Material Innovation Will Improve Sustainability In Beauty & Personal Care.). LOral leveraged Ecologic bottles in the launch of its sustainable personal care line, Seed Phytonutrients, including paper shampoo bottles that dont break down in the shower. Beauty brands are continuing to connect with consumers by employing varied pricing strategies that appeal to wider swaths of shoppers. Its especially important for ecommerce and direct to consumer (DTC) brands that dont have physical retail locations. Based on customer preferences, demographics, and behavior, email marketing also allows brands to deliver a more personalized experience to customers. The videos should also be a mix of promotional and informational, with the emphasis falling on informational. Perfect Diary remains focused on targeting lower-tier cities, where customers may be less accustomed to the beauty market and more open to trying out new brands. More and more consumers are using augmented reality when shopping. Hair color has seen a notable boost in the past year as lockdowns have prompted new forms of self-expression, per Sally Beauty Chief Merchandising Officer Pam Kohn. MAC Cosmetics was founded in 1984. Global digital advertising spending is increasing year after year, accounting for a growing proportion of total media spending, estimated to average almost 54% worldwide in 2020. When we zoom in on the skincare market (which includes lotions, creams, moisturizers, anti-aging serums, and cleansers), the top four performers are publishers rather than skincare brands. 2020 Fortune Business Insights . Hence, sustainability has become a priority across all industries. Share. Given rapid expansion plans and high demand, companies should keep an eye on quality control new plants can encounter hiccups that may compromise the final product. the global market value of natural cosmetics is projected to hit $50.5B by 2027. (July 12, 2022). This has led more brands to partner with a broader range of influencers. Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. But many products are tested on lighter skin tones, ignoring efficacy for people with different skin tones entirely. At the rate the planets resources are being depleted, the shift to lab-grown ingredients may arise out of necessity. Amazon has made major strides in expanding its beauty retail channel. On the basis of distribution channel, the hypermarkets/supermarkets segment held a major share in the market in 2019, and is projected to remain dominant during the forecast period. The challenge remains in scaling up production. Four of the top five skincare market share holders are online publishers. In recent years, one of the biggest ways ingredient transparency has manifested is through the clean beauty movement, which focuses on natural and organic products. There are ample opportunities to seize greater market share. Social media has become a critical way for teenagers to find the trendiest products in line with their clean beauty needs and beyond edutainment for beauty and skincare products. Individuals can share tips and tricks with one another, help solve problems, and make recommendations based on their personal experience. How generative AI can augment customer service agents, Big beauty incubates its own disruptors, ramps up acquisitions, Inclusive beauty becomes table stakes and new niches create huge opportunities, Synthetic beauty gains traction, riding sustainability and supply chain tailwinds, New sustainable packaging prototypes and business models take off, Waterless beauty as the next big eco trend, Beauty brands focus on value and varied pricing, Beauty further integrates with the wellness economy, Virtual try-on enables product discovery and engagement, Ingredient transparency trumps clean beauty, New approaches to omnichannel for beauty take hold, Quizzes, which address customer-specific preferences and customize products according to the results. Globally, the UK has the seventh-largest cosmetics market, with the US and China taking the top 2 spots. Here are some of the most important online beauty industry marketing trends to watch. Both companies raised funding in Q320. And while some trends will fizzle out, others will only expand their reach. Presently, along with women, there is a rise in use of cosmetics among men in their daily routine, which complements growth of the global cosmetics market demand. For example, California-based ManiMe uses 3D scanning and printing technology to create customized press-on nails that are shipped to the customer. Only three of the top ten are beauty retailers. Sephora Accelerates 2021 cohort will also only include founders of color. In February 2021, biotech beauty company Codex Beauty Labs announced a new labeling strategy to include clinical efficacy data on packaging for all its skincare products. For example, Dove recently named Lizzo a new brand ambassador. The presence of large players in the region provides huge opportunity for the consumers to have access to different beauty brands and select products according to their choice. The global COVID-19 pandemic has been unprecedented and staggering, with makeup experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Soothe connects customers with on-demand massage therapists who offer deep tissue, sports, and prenatal massages, among others. In March 2021, beauty conglomerate Coty partnered with LanzaTech to leverage the biotech companys sustainable ethanol in its fragrances. Corporates like Unilever, P&G, and Target have all tapped into this trend through acquisitions, accelerators, internal brand incubation, and more. A market in which L'Oral is the global beauty leader. Sephora has been testing a pilot recycling program in Utah and Colorado since 2019; no expansion plans have been announced. For instance, in April 2022, RENEE Cosmetics, an Indian cosmetic brand, announced the launch of its new product range called Face Base for Indian skin types. Online sales will make up 48% of all beauty sales by 2023, The online channel for beauty in the U.S. grew by 5.6% in 2020, The offline channel for beauty contracted by 1.2% in 2020. The only cosmetics market that recorded growth in 2020. What will be the market value in the future? Overall, the No. Tech companies extensive reach which can include search data, smart home devices, AI capabilities, e-commerce platforms, and more offer compelling opportunities to cash in on the beauty market. A. Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the cosmetics market players. Apart from this, the online segment is anticipated to hold the fastest growing CAGR during the forecast period owing to the rapid boom of e-portals during 2020. Companies going after the space will have to calibrate their messaging carefully and prioritize transparency to successfully engage customers while managing expectations. Meanwhile, unicorn Zenoti, which raised $160M in Series D funding earlier this year, provides services management software for salons in over 50 countries. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Alongside ModiFace, Perfect Corp is a leader in the space, and its tech is used by myriad beauty and tech platforms. We use cookies to enhance your experience. Copyright 2023 CB Information Services, Inc. All rights reserved. sell on social commerce platforms and 48% . New formats for ingestible beauty are also emerging, including companies offering daily skincare shots (Akiva), collagen-infused drinks (SkinTe, Pop & Bottle), and even meal kits (Sakara Life, Urban Remedy). Virtual try-on tech leverages augmented reality to allow shoppers to test how different beauty products will look without needing to reach for the makeup remover wipes afterward. While MAC may have provided the blueprint for the brands that followed, the company hasn't been terribly affected by their competitors' success. Even major brands took a hit: Coty (owner of CoverGirl and Rimmel) saw its share price drop 52% at the end of March, while Ulta Beautys stock saw a 29% decline though both have since bounced back as the US beauty market is expected to recover and reach pre-pandemic levels in 2021. Innovative strategies such as new product launches with natural ingredients and appealing packaging have been adopted by manufacturing companies to increase sales of their cosmetics products. Livestreaming, which refers to livestreamed shopping trips where viewers can purchase the items being featured, is offering a new way to engage younger audiences and boost sales. Tutorials, comparisons, and behind-the-scenes are simple, yet effective ways to build rapport with an audience. In addition to great content and SEO, these publishers also have strict editorial standards and publish expert advice, including reviews, hair, product, and makeup tutorials. In spite of an unprecedented crisis of supply in 2020, the global cosmetics market is a dynamic market which saw a significant recovery in the second half, driven by strong consumer demand. Hypermarkets/supermarkets are gaining popularity, owing to availability of a broad range of consumer goods under a single roof, ample parking space, and convenient operation timings.

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