Diagonal Reports, looking ahead in the beauty industry, published “Beauty Market and Consumer of 2020,” noting that hair and skin care products must be adjusted if brands want to capitalize on growth in upcoming opportunities.
Noting how different beauty cultures are set to become more influential as new countries dominate the beauty rankings and new consumers are set to remake the beauty market in their own image and likeness, Diagonal Reports discussed how tomorrow’s beauty basket will likely contain a different and much wider product range than today's.
In terms of market value and geographical distribution, Diagonal Reports predicts the beauty market of 2020 will be much larger—approximately a quarter bigger—than its current size. New markets' share of global sales is increasing dramatically. These countries are becoming critical to the industry because of the many millions of beauty consumers which they are adding and strong economic growth they are achieving.
As a result of this shift to new regions, beauty cultures, which are quite distinct to those of more mature markets in Europe and North America, will play a much more influential role. This is because ethnicity—especially hair and skin type—combined with traditions shape people's beauty rituals and product priorities.
To take just two examples: people with African-type hair and Chinese women spend more time and money on their hair care and skin care, respectively, than anyone else. In each case, complicated hairstyling and multi-step skin care regimes determine the types of products used and the time invested.
Thus, the product basket, which corresponds to this 2020 beauty market, will include a wider selection of products in line with consumers' rituals. Skin care and hair care categories will continue to dominate the beauty market as they do today. However, the actual products in both the skin and the hair care basket will be quite different as regards the range and type of formulation.