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Redefining the Premium Beauty Segment

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Premium beauty products used to be defined by longevity, brand, price, exclusivity and status. But according to Hannah Symons, research manager, Beauty & Fashion, Euromonitor International, several megatrends are shaping new premium attributes beyond just the price point.

Symons explained to in-cosmetics Global 2019 attendees that efficacy, ethical practices,  personalization, accessibility and time-saving products are what consumers are seeking when exploring the premium beauty segment. 

According to Symons:

  • Sixty-seven percent of consumers are looking for ways to simplify their life;
  • Sixty-four percent of consumers try to have a positive impact on their environment; and
  • Forty-six percent of consumers were willing to spend money to save time in 2018.

Results-driven products are reportedly setting the bar for premium beauty products. Skin care consumers will pay a price for efficacy, but less so for a so-called "premium formulation," Symons stated.

  • Fifty percent prefer proven efficacy over 19% who prefer a lower price. 
  • Thirty-seven percent prefer a premium formulation compared to 27% who prefer a lower price. 

Likewise, natural formulations justify a higher price, but only if efficacious. Skin care consumers said they will pay a price for natural if it offers efficacious solutions. 

  • Thirty-nine percent prefer natural/organic over 26% who prefer a lower price. 
  • Thirty-seven percent prefer proven efficacy over 26% who prefer natural and organic products. 

Symons went on to say that the color cosmetics segment is more influenced by traditional priorities. 

The Top 5 Desired Product Features in Color Cosmetics

  1. Like the color
  2. Value for money
  3. Matched my skin tone
  4. Low price
  5. Like the feel of the product

 The Top 5 Desired Product Features in Skin Care

  1. Value for money
  2. High quality
  3. Function and/or benefits
  4. Low Price
  5. Natural or organic