15 Trends Changing The Face of The Beauty Industry in 2020 - CB Insights Research PDF

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15 Trends Changing The Face Of The

Beauty Industry In 2020
2019 has been a banner year for beauty tech. From big beauty
corporates making their rst tech acquisitions to an industry-wide
push towards customized beauty products and experiences,
technology-backed cosmetics brands will continue to transform the
sector in 2019 and beyond.
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It’s been a big year for the beauty industry. The sector saw a slew of
high-pro le exits, from Unilever’s $500M purchase of J Beauty
company Tatcha to Shiseido’s highly anticipated $845M acquisition of
clean beauty upstart Drunk Elephant.
There are some questions as to whether sky-high valuations in the

sector may be cooling o . But despite an increasingly saturated market,
beauty has proven to be a strong investment category thanks to its high
margins, recurring purchase patterns, and general resistance to
macroeconomic events such as recessions. The category is also
appealing to a broadening audience, including minorities, males, and
age groups beyond millennials and Gen-Z.
Now, new demographics, products, technologies, and consumer

behavioral insights are impacting the sector on both the startup and
https://www.cbinsights.com/research/report/beauty-trends-2019/ 1/50
06/02/2020 15 Trends Changing The Face Of The Beauty Industry In 2020 | CB Insights Research
corporate sides.
From virtual try-on to ingredient transparency, the biggest

developments in tech are leaving their mark on the beauty industry. In
2019, leading brands have embarked on high-tech overhauls across
product development, manufacturing, pricing & distribution,
marketing & merchandising, and the customer experience — and
there’s much more to come.
In this report, we look at the latest innovations across every part of the
beauty space, and highlight the top industry trends to watch in 2020.
TABLE OF CONTENTS
Product Development
Connected beauty systems proliferate

Big beauty incubates its own disruptors, ramps up tech
acquisitions
A post-Fenty society: expanding the de nition of
inclusive beauty
Beauty goes global…and local
Manufacturing
Evidence-based skin analysis

Beauty starts at the lab … and the farm
Beauty manufacturing M&A on the rise
The race towards sustainable packaging
Pricing & Distribution
Beauty pricing becomes transparent

Alternative retailers bet on beauty
Marketing & Merchandising
Beauty further integrates with the wellness economy

Big tech and beauty
Ingredient transparency trumps clean beauty
Customer Experience
Virtual try-on becomes point of di erentiation for

beauty brands
Unbundling of the spa & salon continues
Conclusion
The Top Beauty Industry Trends of 2020
Product Development
the rise of Connected beauty systems
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Smart beauty devices are getting smarter.
CB Insights’ Industry Analyst Consensus shows the global beauty

devices market represents a $74B+ opportunity, driven by the
increasing prevalence and treatment of skin disorders, greater
awareness of the e ects of hormonal imbalance on skin, and the
explosion of skincare within the broader beauty sector.
But it’s not just standalone apps and devices — brands are building
connected beauty systems to personalize skincare treatments, gather
behavioral data on shoppers, and encourage loyalty within brand-
powered skincare ecosystems.
Big beauty corporates have been keen to showcase their tech savvy in
the consumer devices category. In recent years, L’Oreal has developed
wearable sensors to track sun damage and skin pH levels. L’Oreal-
owned Clarisonic is also trying to position itself as a high-tech,
science-driven brand, according to Glossy.
Other major players like P&G, Johnson & Johnson, and Shiseido have
unveiled their own tech-enabled systems.
For example, Shiseido’s Optune, an IoT-powered skincare system

launched earlier this year, integrates a mobile app that leverages AI to
detect users’ skin conditions and then dispenses a personalized
formula each day. Optune is capable of delivering 80,000 possible
combinations.
Source: Shiseido
Meanwhile, Johnson & Johnson has developed a host of personalized

skincare systems, ranging from skin scanning devices such as the
Neutrogena Skin360 to 3D-printed face masks through its Neutrogena
MaskiD technology.
Most of these devices direct customers to the parent brand’s products.

Smart beauty devices that provide brand-agnostic product
recommendations could more broadly appeal to consumers in the
future.
Beyond corporate initiatives, more independent players have entered

the beauty device category.
Swedish beauty and personal care device brand Foreo was reportedly
contemplating a $1B sale earlier this year, according to Bloomberg. The
company launched its rst AI-enabled device, the Luna Fofo, in 2018.
The device integrates machine learning and sensors to monitor skin
hydration levels, and leverages the data to customize users’ cleansing
routines over time.
Source: Foreo
Though beauty devices enable increased personalization for consumers

and data collection opportunities for brands, there are a few issues
companies will need to address before the category can achieve more
mainstream adoption.
For example, given that these devices could add extra steps to users’
personal care routines, companies may struggle to ensure consistency
of use, with skincare-obsessive consumers more likely to integrate
devices into their regimens than more casual users.
Clarisonic has aimed to combat this by launching a loyalty program

that features early access to sales and promotions, concierge-like
services for higher-tier members for personalized beauty routines, and
more. These features could not only enhance customers’
understanding of how to best use a device, but also increase
replenishment sales.
A ordability is also a major question, as most smart beauty devices are

being positioned as premium products. For example, Foreo’s device
prices range from around $50 to just under $300 — with even more
luxe options priced between $6,500 to $8,800.
While beauty is a hot category right now, consumer hardware is a

notoriously tough space, often due to a lack of consumer demand, high
burn rate, product strategy errors, and more.
The spike in mobile apps, skin scanners, and smart mirrors also begs
the question of whether consumers are really bene ting from more
beauty tech. With greater adoption comes a need for beauty tech
companies to consider the built-in system biases that could be
impacting their end consumers.
Beauty tech platforms can create a vicious cycle in which shoppers are
constantly nding something to x about their appearance. Smart
mirrors, for instance, have been known to score consumers against
each other, or compare them to the “average, idealized 20-year old,”
according to Allure.
Chinese surveillance company Face++ even o ers machine vision-

powered “Beauty Scores,” which score the average level of men’s and
women’s facial attractiveness.
Source: Hack & Craft
As IoT and other technologies become more widespread, expect to see

beauty devices become more a ordable and connected beauty routines
become more mainstream across smart homes. However, companies
should also keep asking whether there’s a real consumer need for that
system and whether it could be perpetuating unrealistic beauty ideals.
Big beauty incubates its own disruptors, ramps up tech acquisitions
Privately owned beauty brands are experiencing growth faster than the
total US beauty industry, with new indie brands popping up left and
right. But big beauty companies aren’t letting their market share slip so
easily.
In recent years, there’s been a notable increase in both incubation and

M&A activity from beauty corporates.
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 incubation initiatives. Revlon’s Flesh, L’Oreal’s Seed
Phytonutrients, and Unilever’s Skinsei are just a few examples of
internally incubated brands.
There has also been a rise in corporate accelerators and funds, to

support e orts to nd the next and best in beauty.
Sephora Accelerate has been investing in and supporting female

founders since 2016. L’Oreal o ers a variety of internal initiatives to
support its commitment to new brands and technologies, such as the
Open Innovation Program, the Women in Digital Next Generation
program, and the launch of corporate venture capital fund L’Oreal
BOLD.
On the M&A side, 2019 has seen some very high-pro le brand
acquisitions, especially within the premium skincare space.
In October, Shiseido purchased cult “clean clinical” skincare brand

Drunk Elephant in a much-anticipated sale worth $845M. Earlier this
year, Unilever acquired J-beauty brand Tatcha while L’Occitane bought
skincare brand Elemis for $900M. And Colgate-Palmolive, which has
upped its M&A activity in recent years, purchased anti-aging skincare
brand Filorga in a whopping $1.69B acquisition in July.
Beyond brand acquisitions, big beauty is also going after tech.
L’Oreal’s acquisition of virtual try-on technology company Modiface

served as a major milestone for the industry, signalling that the future
of beauty is increasingly tech-enabled. Since then, companies like Ulta
Beauty and Henkel have made some of their rst tech acquisitions.
But while big beauty has recognized that incubation and M&A
strategies are essential to compete with smaller brands and maintain
market share long-term, their e orts have seen mixed results.
Notably, Coty recently announced its partnership with direct sales

company Younique will terminate, and it will sell its majority share
back to the Younique founders.
Though L’Oreal’s Seed Phytonutrients has served as a positive story for

how incubation in big beauty companies can be successful, achieving
this is much easier said than done.
Clients can read more about independent and corporate-owned beauty

accelerators and incubators here.
A post-Fenty society: expanding the de nition of inclusive beauty
Since Fenty Beauty’s launch in 2017, “inclusive beauty” has become an

industry buzzword, encompassing new demographic markets that are
becoming increasingly important for the beauty industry to target.
Understanding the di erence between “niche” and “underserved”

audiences is crucial. Expect the beauty industry to increasingly cater to
more underserved demographic categories.
Below we outline a few of these markets, which are becoming integral

to de ning the future of inclusive beauty.
Male personal care & beauty routines
While the mainstream media has historically targeted women when it

comes to beauty and grooming products, more options for men’s
personal care products are emerging.
Personal care and pharmaceutical companies have been selling male-

focused products such as razors or hair loss prevention pills for over a
century. Now, many of today’s brands are employing direct-to-
consumer distribution and refreshed packaging to attract a new
generation of male consumers.
Since Unilever’s $1B acquisition of Dollar Shave Club in 2016, M&A of

men’s personal care brands has spiked. In late 2018, P&G bought
Walker & Company Brands, the parent company of beauty and
grooming brands focused on people of color. In May 2019, Edgewell
acquired Harry’s Razor Company at a $1.4B valuation. Recently, SC
Johnson purchased men’s skincare brand Oar+Alps for a reported
$20M.
Private players like unicorn Hims, which aims to be a holistic male

wellness brand through its suite of haircare, skincare, and supplement
products, are raising capital. Meanwhile, a slew of younger men’s
personal care brands are launching, including Hawthorne, Lumin, and
others.
Gender-neutral beauty products
“Boy beauty” and gender neutral products support this greater focus
on inclusive beauty.
Companies like Asos, Calvin Klein, Yves Saint Laurent, Clinique, and
others o er makeup for men, while startups like Context and
incumbent brands including MAC, Tom Ford, and Marc Jacobs have all
launched gender-neutral makeup lines.
To cater to this trend, beauty incumbents like Maybelline and Covergirl

have also announced male brand ambassadors.
People of color
Though there’s been a lot of buzz around more e ectively targeting

people of color in the beauty sector, there’s still a lot to be done.
Beyond Fenty, a number of inclusion-focused brands have recently

launched: Mented Cosmetics, Urban Skin Rx, Live Tinted, and others
are making inclusive beauty a core part of their brand value
proposition.
Source: Mented
Beauty companies are also thinking about how to target speci c

demographic categories.
For example, Latinx consumers have become an increasingly important

shopper demographic for the beauty industry. The average Latinx
household income has grown nearly 30% since 2005, and 45% of US-
born Latinx females are under the age of 18 — presenting major
opportunities for brands to better target Latinx beauty shoppers.
In targeting people of color, companies must be mindful of the risk of

overlooking the complex consumer behavior dynamics across
particular ethnic groups.
Ultimately, brands that can cater to these demographics without

oversimplifying the nuanced dynamics of their communities will be
more likely to succeed in the increasingly saturated beauty market.
Boomers
Though much of the marketing in beauty has focused on millennials

and Gen-Z, major opportunity exists in meeting the needs of female
baby boomers.
Even though they represent one of the most a uent segments, beauty
brands and marketers have tended to ignore this demographic.
Consumers have take notice: 70% of women aged 40+ want to see more
beauty products targeting perimenopausal and menopausal women,
according to an AARP report.
Not only is there a dearth of product o erings targeting older

consumers, but the same AARP report found that advertising in the
beauty industry has also largely excluded this demographic, with 74%
of boomers perceiving a lack of representation.
Be on the lookout for more beauty brands and corporate initiatives

focusing on female boomers — especially as the women’s health space
increases its focus on the needs of menopausal women.
Teens, tweens, and children
Beauty brands are also looking to babies and children for untapped
opportunities.
Though the category is much smaller than adult skincare, it grew by

nearly 9% last year, according to Euromonitor. And 3 out of 4 parents
say they would spend more on personal care products for their children
rather than on themselves, according to Mintel.
In 2018, luxury skincare brands such as Pai Skincare, Dr. Barbara

Sturm, and others expanded into baby and children’s skincare
products.
Source: Dr. Barbara Sturm
Gen-Z focused brands have also been on the rise, such as UK-based
Plenaire and Millie Bobby Brown’s Florence by Mills, which recently
launched in Ulta. Meanwhile, incumbent brands like Chanel, YSL, and
others are revamping their product launch and marketing strategies to
attract Gen-Z shoppers.
Of course, to get into the hands of teens, brands must convince their
parents that these products meet a real need and are safe for regular
use.
Ingredient transparency and non-toxic options will be crucial for this

category to see sustained growth.
Beauty goes global…and local
K-beauty hit the United States in 2011 when Sephora began carrying
Korean skincare brand Dr. Jart+. Since then, Western shoppers have
clamored for Korean beauty products.
While K-beauty shows no signs of slowing down, other markets are

garnering attention for their own heritage-inspired products. Beauty
markets across the globe are developing brands for internal
consumption while also exporting them globally.
Other Asian beauty markets on the rise include China, which is a hotbed
for virtual beauty thanks to its advanced mobile technologies and tech
giants (further discussed below). Meanwhile, Indonesia o ers a
booming halal beauty market.
Beyond Asia, Brazil represents one of the fastest-growing global

markets for beauty and personal care. Big beauty corporates are also
attempting to penetrate the African beauty market, according to
Business of Fashion.
Ultimately, targeting new continents — or even country-speci c

markets — requires hyper-localization.
Many global beauty market trends are inspiring the exportation of

culture-inspired brands. For example, Germany’s — or “G-beauty’s”
— minimalist skincare approach has garnered increasing media
attention and retail distribution while Ayurvedic-inspired beauty
brands such as Sahajan, Aavrani, Uma Oils, and others are targeting
Western shoppers.
Source: Sahajan
As global beauty markets further develop, expect to see continued

globalization and localization of heritage-based trends.
Manufacturing
Evidence-based skin analysis
Skin tech became all the rage in 2018, with an increasing number of
companies incorporating AI and other technologies for personalized
skincare recommendations.
One of the major questions with skincare as a category is whether

products actually deliver on their promises. Subsequently, tech brands
are focusing on evidence-based skin analysis and developing
mechanisms to track skin changes over time.
Many brands have used arti cial intelligence to personalize skincare

analysis and user recommendations.
For example, the HiMirror, originally launched in 2016 by the New

Kinpo Group, o ers an Amazon Alexa voice-controlled smart mirror
that provides users with beauty advice. The HiMirror leverages AI to
o er a daily skin analysis and personalized recommendations, as well
as augmented reality to let users virtually try on makeup.
Meanwhile, Proven develops personalized skincare regimens based on

machine learning algorithms, which incorporate 47 unique skin,
lifestyle, and environmental factors.
Atolla, which launched in August 2019, leverages a multi-pronged tech

approach to produce personalized serums. The company uses AI, a
monthly at-home skin test, and a mobile app to develop users’ skin
health pro le, which change based on the monthly test, inputs from
users on season or lifestyle changes, and more.
Beyond the use of AI, Curology o ers a telemedicine-based approach to

dermatology by sending custom prescriptions and relying on patient
photos to measure progress over time.
Corporates have also been active in developing their own personalized

skin systems.
At CES 2019, P&G showcased its Opté Precision Skincare System, which
detects skin blemishes and applies makeup to speci c spots without
wasting product on other parts of the skin.
Source: Dazed Digital
Genomics is also playing a bigger role in personalizing beauty

recommendations.
Companies like Pathway Genomics’ SKin IQ, Allél, SKINSHIFT, and

others are o ering beauty-focused DNA testing kits, which can curate
product recommendations or branded, personalized products based on

users’ speci c genomic skincare traits.
Additionally, a rising focus on the microbiome’s relationship to

broader skin health, which has led to an explosion of probiotics-
powered skincare brands, is also supporting research and investment
into personalized skincare systems and applications.
For example, earlier this year, L’Oreal announced a partnership with

microbial genomics company uBiome to further its research into the
skin microbiome. And on the investment side, microbiome-based
personalized skincare platform ELSI Skin Health just raised a seed
round from Sekhmet Ventures.
Expect to see brands establish a greater focus on tracking skin health

changes over time — through technologies, clinical trials, and more.
Beauty starts at the lab … and the farm
From food to beauty products, plant-based ingredients have taken the

CPG world by storm.
Ingredients trending in food brands — including turmeric, moringa,

coconut oil, and probiotics — have long been integrated by beauty
brands, and vice versa.
As the line between food and beauty products thins, expect to see
beauty brands partner more closely with farmers for ingredient
sourcing.
Ingredient sourcing is a major concern for beauty brands, especially

ones focused on “natural” or organic products, as environmental
factors can make working with raw, natural ingredients di cult.
Popular ingredients such as jojoba oil and rosehip oil have faced global
crop shortages, putting brands that rely on those ingredients at risk.
To better control their ingredient supply chains and mitigate these

potential risks, many natural beauty brands are employing vertical
integration by working with and basing their businesses on farms,
which can function as labs to test ingredients and natural technologies.
These initiatives point towards an increased focus on sustainability in

the beauty industry more broadly, as transparent ingredient sourcing
emphasizes eco-friendly production processes and subsequently leads
to more sustainable end products.
Popular natural beauty brands such as Juice Beauty, Tata Harper,

Beekman 1802, and others are furthering the farm-to-face movement
by renting or buying farms to better evaluate and control the ingredient
production process.
Indie brands are working directly with farms, agriculture research

rms, and even universities to improve ingredient sustainability and
develop new ingredients.
For example, jojoba-infused luxury organic skincare line Ogee o ers a

percentage of its sales to the Organic Farming Research Foundation to
increase resources for bringing more organic crops to beauty
ingredients. And Juice Beauty has become one of the rst brands to
have its organic ingredients studied by academia for their speci c skin
bene ts.
Agro-tourism could also support consumer desire for product

transparency. This has been demonstrated by companies such as Lily
Farm Fresh Skincare, which makes its USDA-approved skincare
laboratory available for public viewing.
Beauty incumbents have also begun partnering more closely with

farmers. For example, L’Oreal’s internally incubated brand Seed
Phytonutrients partners with independent American organic farmers.

The brand emphasizes sustainability through its compostable
packaging as well as its focus on preserving heirloom seeds.
Source: L’Oreal
Moving from the land to the lab, biotechnologies are increasingly

impacting the production of future beauty ingredients.
For example, unicorn Ginkgo BioWorks has genetically engineered

yeast fermentation to produce rose oil with new and unique scents
without relying on expensive rose petals. Biotech company Geltor
o ers vegan collagen technologies speci cally crafted for skincare
ingredient applications.

Source: Synbio Beta
CRISPR’s gene editing technology, while still nascent, could play a

bigger role in beauty ingredient production in the future. While no
concrete beauty use cases for the technology exist today, potential
bene ts — such as helping farmers grow pathogen-resistant crops or
creating new species of plants — could eventually translate to
cosmetics ingredient production.
CRISPR technology could even enhance the outcomes of plastic surgery

procedures with its potential in areas such as tissue engineering,
wound healing, gene mutations, and more.
Expect to see greater crossover between cosmetics, agriculture, and

biotechnology as beauty brands seek to produce more nutrient-rich
products.
Beauty manufacturing M&A on the rise
The industry conversation around beauty M&A has historically focused

on indie and digitally native brands. More recently, tech acquisitions
are becoming hotter targets.
But manufacturing companies could serve as the next big beauty M&A
wave.
Last year, Cornell Capital acquired Canada-based KDC (Knowlton

Development Corporation), which specializes in manufacturing and
custom formulation for the beauty and wellness sectors.
Bain Capital bought a majority stake in private label-focused beauty

manufacturer Maesa in March 2019, while Elkem ASA announced its
purchase of Korea-based silicones supplier Basel Chemie for nearly
$27M in August.
More recently, global dispensing company AptarGroup announced a

substantial minority stake in Chinese manufacturing company BTY,
which o ers color cosmetics packaging solutions as one of its major
activities.
So, what is causing this increase in manufacturing deals?
For one thing, there are fewer beauty brands for sale. With the potential
for a beauty bubble, private equity rms are looking towards
investment opportunities in more “behind the scenes deals,” such as
ingredients or manufacturing operations, according to WWD.
Additionally, the rise of supply chain technologies, along with major

industry questions around sustainable packaging, could be
contributing towards increased manufacturing deals.
Expect to see greater industry consolidation, vertical integration, and

funding as manufacturing deals take center stage in the sector. Watch
for increased initiatives around optimizing e ciencies in
manufacturing, supply chain, and operations in the beauty industry.
The race towards sustainable packaging
“Clean” beauty today is not just about what’s in consumers’ products,

but also how products are produced and packaged.
Sustainability is a hot topic across virtually every sector, but it’s

become a particularly important conversation within CPG, an industry
with replenishable products historically featuring single-use
packaging.
Consumers — especially millennials and Gen-Z — are leading the shift

away from single-use plastic. This shift is accelerating as government
regulation in the EU and select US states pushes CPG companies
towards adopting more sustainable alternatives.
To tap into the trend, beauty corporates are increasingly investing in

sustainable development initiatives and technologies.
For example, Unilever has pledged to cut down its plastic usage and
speci cally halve its use of “virgin plastic” by 2025. Earlier this year,
L’Oreal invested in biotech startup Carbios, which is developing plastic
recycling technologies, and also stated it will move to paper-based
cosmetic tubes in 2020.
Source: CosmeticsDesign-Europe.com
Meanwhile, beauty retailers like Sephora are testing pilot recycling

programs, according to Glossy.
In e orts to reduce their carbon footprint, beauty brands both large

and small are embracing recyclable and re llable packaging.
Notably, L’Oreal-incubated Seed Phytonutrients features shower-

friendly recyclable paper bottles developed in partnership with
sustainable packaging startup Ecologic.
A slew of indie brands are building their value propositions not just
around their products but also on their sustainable packaging. Lerer
Hippeau Ventures-backed By Humankind o ers personal care products
such as deodorant in re llable dispensers.
Companies such as HiBar are also emerging to o er shampoo and

conditioner bars with minimal packaging.
Source: By Humankind
On both the big beauty and indie side, sustainable packaging is

becoming just as integral to consumers’ preferences as the actual
product e cacy.
Keep an eye out for more incubation initiatives, indie brand launches,
and sustainable development and recycling technologies to further
eco-friendly packaging in the beauty industry.
We discuss big CPG initiatives to reduce single-use plastic further here.

Also check out our packaging tech market map here.
Pricing & Distribution
transparent pricing & the Growth of ‘masstige’
Though prestige beauty is a high-growth category, more a ordable

pricing models have emerged as shoppers’ demand for cosmetics
transparency reaches an all-time high.
For example, Deciem‘s cult skincare brand The Ordinary emphasizes

hyper-transparency, which manifests in both its ingredients and
a ordable pricing. Using established, science-backed ingredients that
are cheap to manufacture, the company is able to drive the price of
products down to be inexpensive.
Consumer desire for transparency has also inspired new models for
delivering quality cosmetics minus markups.
For instance, Beauty Pie o ers a monthly beauty membership that

advertises “luxury beauty at factory cost prices.” Customers pay $10 a
month to buy unbranded beauty products at factory cost.
Source: Racked
Other companies, such as Brandless and Public Goods, are exploring

opportunities in unbranded beauty products.
Retailers are also using private labels as an a ordable entry point into
more premium products. For instance, Sephora’s private label plays a
key role in attracting shoppers and controlling pricing and
inventory. Sephora Collection is Sephora’s most a ordable line, with a
range of nearly 500 products including makeup, skincare, fragrance,
beauty tools, and more. Today, Sephora positions the brand as a
gateway drug to introduce novice beauty shoppers to its collection,
with the idea that they could eventually graduate to premium brands.
While many clean beauty retailers tend to o er brands with higher

price points driven by more expensive ingredients and sustainable
packaging, some clean beauty retailers are emphasizing more
a ordable o erings. Target, for example, distributes many clean
beauty brands, 70% of which o er products for less than $15, according
to Allure.
As premiumization advances in the sector, expect to see brands

continue to emphasize transparency and a ordability through new
pricing models.
Alternative retailers
Gone are the days when high-end beauty products could only be
purchased at department stores.
Retailers like Sephora and Ulta have blurred the lines between prestige
and “masstige,” but a deluge of alternative retailers have been
aggressively expanding into beauty retail to cash in on the sector’s high
margins and low barrier to entry.
Below, we outline a few of the alternative retailers rapidly shifting the

beauty retail landscape.
Apparel retailers
Fashion retailers are capitalizing on beauty to complement their

existing o erings and directly compete with beauty retailers like
Sephora.
Companies such as Anthropologie, Urban Out tters, Madewell, and

others have forayed into beauty o erings to enhance their stores. By
catering to millennial and Gen Z beauty shoppers, these retailers could
begin chipping away at traditional beauty retailers’ market share.
Amazon
Over the last couple of years, Amazon has been aggressively pushing
into beauty e-commerce.
From launching its Indie Beauty Shop in 2018, to inking an exclusive

distribution partnership with Lady Gaga’s Haus Labs brand, to
developing an online marketplace for salon professionals, Amazon’s
beauty retail ambitions are no secret.
Source: Beauty Independent
But it’s uncertain how Amazon’s presence in beauty retail will play out
— and no clear consensus exists on whether indie brands should
choose to partner with Amazon.
Read more about Amazon’s aggressive push into beauty retail in our big
tech and beauty brief.
Next-gen o ine distribution: makeup booths & vending machines
Other o ine alternative distribution channels present new

opportunities for beauty retail to ourish.
China’s human-free retail options and even tech-enabled makeup

booths could serve as a new point-of-sale for personal care products.
A number of venture-backed startups in the country, from Bingobox to

F5 Future Store, have rolled out fully automated convenience stores,
while Beijing-based 17Beauty operates tech-enabled “makeup booths”
across Beijing and Shanghai.
These booths are placed in public locations with high foot tra c, such
as malls, o ces, and transportation hubs, allowing customers to
privately adjust their makeup and hair on the go. Users scan a QR code
to enter the booth, where they can then access a facial recognition
system that provides personalized makeup suggestions.
The booths o er both established brand name cosmetics as well as up-

and-coming brands, and they are replenished with new makeup
products every couple of weeks based on users’ feedback. 17Beauty
plans to ultimately gather enough data on user preferences to provide
feedback to brands.
Though vending machines have long been used in Asian markets,

Western companies are now employing similar options for new
distribution channels. For example, Vengo, which develops cash-free,
touchscreen vending machines for higher-priced products, has
previously partnered with beauty brands. Arcade Beauty, the largest
global beauty samples manufacturer, even led Vengo’s $7M Series B
round in January 2019 to scale the company’s use cases with a focus on
beauty.
Partnerships with in uencers & celebrities
While alternative retailers may create more convenience for beauty

shoppers, this over-distribution is heating up competition within
beauty retail.
It also emphasizes the importance of di erentiation for both retailers

and brands.
Retailers must curate assortments that resonate with consumers, while

brands must be focused about which retailers — or individuals — they
choose to partner with.
In uencer-launched beauty brands can o er retailers a competitive

advantage. For instance, new brands like Haus Labs by Lady Gaga and
Pattern Beauty by Tracee Ellis Ross have launched exclusively with

retailers Amazon and Ulta respectively.
Meanwhile beauty brands from Too Faced to Eos have partnered with
Gen-Z-popular platform TikTok, as platform stars increase their
following and in uence over younger consumers.
Ultimately, alternative retailers are blurring the lines of where

consumers can buy certain types of beauty products beyond high-end
department stores or Sephora — leading to increased competition and
the need for retail di erentiation. Expect existing players to deepen
their assortments and new entrants to clamor for beauty brand
partnerships.
Marketing & Merchandising
beauty meets wellness
The beauty wellness connection is alive and well, with beauty products
and experiences increasingly being associated with various sectors
within the wellness economy.
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Vitamins & supplements
While beauty supplements aren’t a new concept, startups are

increasingly o ering suites of vitamins and supplements that promise
beauty bene ts such as weight loss, clearer skin, and stronger hair.
Investors have recently backed companies in this space such as Vital

Proteins, Moon Juice, and HUM Nutrition, which most recently raised a
$15M Series B round in April 2019. And startups like Love Wellness,
which received $4M in Series A funding in 2019, are combining beauty,
intimate care, and women’s health via supplement solutions.
Fitness
From the rise of active beauty to companies like ClassPass expanding

into on-demand beauty and wellness services, beauty and tness are
increasingly intertwined in consumers’ everyday routines.
Athleisure and beauty have also integrated for post-workout wellness.

Startups and incumbents alike are experimenting with body, skincare,
and other cosmetic products targeting consumers with active lifestyles.
As beauty brands cater to consumers’ exercise regimens, tness brands

are also moving into beauty. Earlier this year, Lululemon launched a
personal care brand for post-workout products ranging from an $18
dry shampoo to a $48 face moisturizer.
Lululemon’s 5-piece beauty collection. Source: Allure
Moving forward, look for more non-Western players to jump on the

trend and experiment with active beauty products.
For instance, Amorepaci c recently tapped into the trend with the
launch of its supplement brand CUBEME in 2018. The brand, which sold
out during its pre-launch, o ers beauty supplements that aims to
combat urban lifestyle stressors, promote weight loss, and more.
Expect more partnerships in this space — such as beauty and tness

brands promoting complementary products and experiences as seen
with Glossier and Equinox.
Read more about active beauty in our wellness trends report.
Medicine
While cosmetic surgery largely remains a sensitive topic in the United

States, Asian markets have long embraced the practice.
Notably, East Asian markets have seen a growing demand for cosmetic
surgery, thanks to increased medical tourism and relatively a ordable
treatments across the region.
Companies have raised millions of dollars for di erent use cases across
the medical aesthetics space. This includes Eunogo, which o ers a
virtual assistant for arranging medical aesthetic appointments for
foreigners visiting Korea; GengMei, a Chinese cosmetic surgery app;
and SoYoung, an online marketplace and social network for consumers
interested in plastic surgery.
Recent activity suggests that Western markets are catching up with

Asia in terms of commoditizing plastic surgery treatments.
Botox bars like Alchemy 43 and Ever/Body have respectively raised $3M
and $17M from investors like Forerunner Ventures, Tiger Global
Management, and others. Online aesthetics marketplace RealSelf has
raised over $40M.
And outside of the US, Shoppers Drug Mart, which is Canada’s largest
drug chain, launched a standalone clinic o ering Botox injections,
llers, laser treatments, and
https://www.cbinsights.com/research/report/beauty-trends-2019/ other treatments earlier this year while 32/50
Instagram aesthetics are driving increased cosmetic procedures in the

UK according to Vice.
Travel & hospitality
As consumers look to take their wellness routines while on-the-go, the

travel and hospitality sectors have signi cantly overlapped with the
beauty industry.
Beauty brands such as Sunday Riley and Elemis (acquired by L’Occitane

in January 2019) have inked partnerships with airlines — United
Airlines and British Airways, respectively — to supply beauty kits for
premium passengers.
United Airlines and Sunday Riley partner on luxury skincare line.

Source: United
These channels can help beauty brands access new markets while
allowing traditional players to cater to consumers’ increased desire for
beauty and wellness products.
Brands are also targeting hotel-goers for beauty products and services.
Beauty app Nomi caters to on-the-go business travelers by sending

hair stylists and makeup artists to hotel rooms, while hotels such as the
James Nomad Hotel in New York have experimented with CBD-infused
beauty products for travelers to use after their long journeys.
And many wellness cruises, which have gained popularity, have

partnered with luxury spa and wellness brand Canyon Ranch to o er
amenities ranging from tness classes to spa treatments.
Ultimately, the cross-convergence of beauty with other wellness

sectors coupled with alternative retailers entering the space signals
increased beauty co-investment opportunities with players in retail,
luxury, hospitality, and wellness.
Big tech in beauty
Beauty and tech are becoming increasingly intertwined.
While beauty conglomerates like L’Oréal, Ulta, Shiseido, and others are
making acquisitions to become more tech-enabled, tech giants like
Google, Amazon, Facebook, and Apple are pursuing the high margins in
beauty through partnerships, consumer insights, e-commerce, and
more.
Compatible interests exist between the tech and beauty sectors —

which are fueling increased partnerships in the space.
Tech companies’ search data, smart home devices, advertising and

marketing capabilities, and more o er compelling opportunities to
cash in on beauty shopper data.
Simultaneously, the beauty industry is looking towards tech to provide

an edge in an increasingly crowded market.
Below, we note a few areas where big tech and beauty are
collaborating.
Online beauty retail channels
While Amazon has made major strides in establishing a beauty retail

channel, Instagram has become paramount for the beauty industry.
The platform has played a major role in creating entirely social,

digitally native brands across all consumer categories and is
particularly well-suited to beauty — an industry that is inherently
visual, based on peer recommendations, and has a relatively low barrier
to entry.
Instagram has not only invested in partnerships with beauty brands to

better monetize its platform, but the company is aiming to turn itself
into an e-commerce player.
Earlier this year, the company launched in-app checkout for shoppable
posts and since then, it has rolled out features such as augmented
reality shopping and in-app reminders for new product drops.
Voice assistants
Voice assistants present massive partnership opportunities for big tech

and beauty.
Amazon, Apple, and Google have launched their own virtual assistants,
and mentions of “voice” or voice products on earnings calls indicate
just how much these companies are betting on voice-enabled smart
home devices.
At the same time, beauty companies are looking to master voice-based

shopping to ensure their brands remain top of mind for consumers.
For instance, Sephora has partnered with Google Assistant to launch its
own app, which allows users to book beauty services, take quizzes, and
listen to in uencer-curated beauty podcasts.
Source: Voicebot
With tech giants expanding into smart home devices, voice-activated

beauty skills o er new opportunities to increase consumer device
engagement.
Beauty brands must continue to consider how voice technology could

be used to address shopper pain points, from personalized
recommendations to booking reservations.
Other initiatives
Google has leveraged its search data to help brands better understand
beauty shopper preferences. The giant has leveraged partnerships with
personal care brands, industry research, and consumer insights
reports, and even events to create a more data-driven process for
beauty companies.
Interestingly, sunscreen serves as another up-and-coming area that

big tech companies are increasingly focusing on.
Tech giant IBM happens to hold the highest number of sunscreen

patents (from 2014 to 2019), many of which focus on speci c particles
to enhance sunscreen application.
Other companies are taking the partnership approach. L’Oreal

partnered with Apple to launch its “My UV Patch” (launched in 2016)
into Apple’s stores and integrate with Apple’s Health app, as the tech
giant continues expanding its health metrics.
Apple’s patent activity could also point to its ambitions in the

sunscreen tech space. In July 2018, Apple published a patent application
to build an ultraviolet (UV) and/or infrared (IR) light scanner in order
to measure sunscreen protection.
The future of big tech and beauty
Beyond Google, Apple, Facebook, and Amazon, beauty companies are

exploring new use cases and partnerships with other tech companies
ranging from personalized shopping experiences to AI-based digital
fragrance models.
Expect to see new kinds of partnerships between tech and beauty and
personal care brands — beyond some of the more obvious use cases.
Though beauty and personal care hasn’t historically been a focus area
for tech companies, these giants will undoubtedly extend their
in uence in the sector — seeking to monetize their data, platforms,
and devices as the beauty industry becomes more tech-enabled.
To learn more about how the big tech and beauty industries are
partnering, check out our brief here.
Ingredient transparency
Consumers are increasingly demanding greater insight into what their

products are made of — especially as the link between speci c cosmetic
ingredients and health issues becomes more apparent.
Ingredient transparency has become a top priority not only for beauty
and personal care brands, but also for CPG and retail companies more
broadly. Corporates like Unilever, P&G, and Target are tapping into this
trend through acquisitions, accelerators, internal brand incubation,
and more.
And one of the biggest ways ingredient transparency has manifested is

through the clean beauty movement.
Farm-to-face, seed-to-skin — whatever you call it, the clean beauty

economy is booming. The global natural and organic beauty market is
estimated to be a $22B global market, per CB Insights’ Industry Analyst
Consensus.
Mentions in earnings calls of clean beauty, natural and organic

cosmetics, and more have also risen to new highs over the last year.
But there’s a not-so-green side to the clean beauty movement.
Currently, the FDA has limited regulatory oversight over cosmetics

manufacturing and ingredient standards. In fact, US cosmetics
regulations haven’t been updated since 1938. So, despite their
widespread use, terms like “natural” and “clean” are unregulated and
therefore have no consistent standard across beauty and personal care.
As a result, brands have gotten into major trouble for “greenwashing,”

or advertising products as “better-for-you” when that may not be the
case. And on the ip side, brands are playing on consumer fears by
shaming ingredients like parabens, which may actually not be as

harmful as marketing suggests.
In other words: not all natural ingredients are good and not all
synthetics are bad. Often, ingredient concentrations are more
important than the actual ingredients themselves.
Despite these issues, ingredient transparency is a trend that’s here to

stay. Below are 3 ingredient transparency trends CPG & retail
companies should be paying attention to.
Transparency tech
Tech is aiming to do the work for consumers who don’t have the savvy
or patience to sit and read cosmetic labels.
Consumer-facing ingredient apps and B2B ingredient intelligence

platforms are emerging to educate consumers and provide data to
brands and retailers on cosmetic ingredients.
Beyond mobile, connected packaging could also play a bigger role in

promoting ingredient transparency through digital content and
tutorials.
For example, active beauty brand Yuni Beauty partnered with smart
packaging company Thin lm to integrate NFC tags, allowing
customers to access digital experiences which showcase the brand’s
story and products.
Voice technologies could also support ingredient transparency.
Voice assistants — which beauty companies have already been

partnering with — could start o ering more ingredients-based skills
in the future. (Think “Alexa, is this moisturizer formaldehyde-free?”)
And with greater experimentation of blockchain technology across CPG

& retail, we could see similar initiatives in the beauty and personal care
space emerge.
Biotech ingredients
While beauty corporates have been partnering with the biotech

industry for some time, biotech companies are increasingly catering
towards cosmetics companies with new ingredient innovations.
Startups are developing new biotech ingredients for cosmetics

including:
Animal-free collagen (Geltor)

Sugar cane-based squalane (Amyris-owned Biossance, which sells
its products in Sephora)
Ethically-sourced keratin (hair care brand Virtue Labs)
Biosilk proteins for skincare applications (Companies like Silk
Therapeutics, AMSilk, and Bolt Threads’ direct-to-consumer
brand Eighteen B)
New ingredient sourcing standards & ethical labels
From “wild” skincare to halal-certi ed cosmetics, brands are pursuing

new sustainable sourcing standards and ethical labels beyond organic
and cruelty-free cosmetics.
Though ingredient sourcing has historically been a trade secret for

beauty companies, such standards, labels, and partnerships could help
consumers navigate confusion around “natural” products.
It could help improve the beauty production value chain and also help
brands distinguish themselves as the clean beauty market becomes
more saturated.
The future of ingredient transparency
Ultimately, the ingredient transparency trend will go more mass-

market and global across all consumer products.
Upcoming regulation in the US — from the passing of the California

Cruelty-Free Cosmetics Act to more recent proposals for national
sunscreen reform — suggests that greater ingredient transparency is
on the horizon.
The EU’s ban on “free from” marketing claims also suggests a future
where we move beyond today’s buzzwords of “clean” and “natural”
and develop more tangible standards for personal care ingredients.
In the US, California plans to implement new labeling requirements,

including requiring brands to list fragrance allergens, in 2020. These
rules will apply to air fresheners, dish soap, and other household
categories.
Customer Experience
Virtual try-on
Virtual try-on in the beauty industry represents one of the best use
cases for augmented reality — a technology that has struggled to
achieve mainstream adoption.
AR became more widely adopted in the beauty industry in 2017 when

Perfect Corp and Modiface established themselves as the go-to
providers of augmented reality for the sector.
Virtual try-on serves a dual purpose in beauty retail. By combining both

augmented reality and computer vision, virtual try-on allows shoppers
to virtually test out di erent looks, while simultaneously collecting
behavioral data for brands.
This technology, which collects a variety of data points around facial

characteristics such as face shape, skin tone, wrinkles, and more, can
help retailers determine what types of products people with speci c
facial characteristics are more likely to purchase, potentially predicting
inventory with greater accuracy. (Read more in our AI retail trends

report.)
It also personalizes the mobile shopping experience by enhancing

product discovery and capitalizing on consumers’ social media
behavior.
Since L’Oreal’s acquisition of Modiface, the conglomerate has launched

a variety of AR-powered beauty experiences for L’Oréal’s beauty
brands.
In 2018, L’Oreal launched a long-term partnership with Facebook to

create AR beauty experiences for its portfolio brands on the social
network’s platform. Within Facebook, users can virtually try-on
products using a smartphone camera, and then be seamlessly
redirected to parent sites to make a purchase.
L’Oréal has also rolled out Modiface-powered web-based try-ons, as

seen with the L’Oréal Paris brand and more recently, with Amazon.
Virtual makeup try-on on Giorgio Armani Beauty’s shopping site in

China. Source: Beauty Packaging
AR-powered shopper tracking technologies can also increase mobile

sales and conversion rates as well as help boost product recognition.
Source: Yahoo Finance
For example, Estée Lauder-owned Smashbox partnered with Modiface

to use customer eye tracking insights to heat map the areas on a screen
receiving more attention by users. This helps Smashbox understand
which features are the most interesting and iterate on its website to
make the beauty shopping experience more relevant for consumers.
L’Oréal previously worked with Modiface to add an augmented reality

feature to its “Style My Hair” app that helps consumers visualize what
their hair will look like after a coloring treatment and most recently
added AR hair color try-ons to its D2C at-home hair coloring brand
Color&Co.
And others are taking it a step further: LVMH-owned Bene t Cosmetics

partnered with Modiface to launch an augmented reality tool to help
users try on di erent eyebrow types before getting waxed or plucked.
Even nail color is getting the AR treatment, with companies like Wanna
Nails (owned by Wannaby) and Metaverse Makeovers specializing in
augmented reality for nail polish try-on.
China dominates virtual try-on tech
Virtual try-on in China has exploded, thanks to the country’s sel e

culture and the dominance of WeChat. Chinese photo-editing app
producer Meitu has largely powered the region’s sel e culture, where
photo editing is a social norm.
This consumer behavior of sharing photos while trying on makeup can

liven up product demos, boosting tra c to a brand’s WeChat platform
and increasing word-of-mouth exposure — thereby increasing both
consumer engagement and sales.
Notably, in July 2019, L’Oréal’s Armani Beauty announced that it will be

the rst beauty brand to incorporate augmented reality (AR) into its
WeChat application.
WeChat, which rolled out its AR e ects capability this summer, o ers
clear advantages for beauty brands — especially the app’s massive
scale. WeChat boasts a daily user base of 1B along with a strong
in uencer community.
Tencent-owned WeChat is not the only Chinese tech giant vying for
virtual try-on technologies: Perfect Corp just raised a Series B round
led by Alibaba. The company also inked a partnership to integrate its
YouCam virtual try-on tech with Alibaba’s online platforms — Tmall
and Taobao.
What’s next for virtual try-on
Clearly, virtual try-on is deepening its impact on the beauty industry as

AR becomes more integral to beauty shoppers’ experiences.
Big tech will continue powering virtual try-on. Notably, YouTube

recently launched a beta version of its AR Beauty Try-On for use in its
smartphone ads — helping beauty brands measure consumer
engagement of the platform’s two billion monthly active users.
And major players have been experimenting with virtual beauty

advisers to guide users and make speci c product recommendations
within augmented reality platforms. For example, L’Oreal-owned NYX
Cosmetics launched its Live Makeup Consultation feature last year.
L’Oreal and Facebook partner on AR makeup try-on. Source: MediaPost
Expect to see China continue its leadership in virtual try-on

innovation, thanks to the predominance of WeChat as super-app as
well as the country’s beauty ideals and sel e culture.
But whether virtual try-on will see greater widespread adoption in

markets with fragmented tech platforms, increasingly stringent
consumer privacy policies, and in cultures with more inclusive beauty
ideals remains to be seen.
Unbundling the spa & salon
Beauty services are decoupling from traditional spas and salons, thanks
to on-demand technologies.
Founded in 2008 and with 90+ locations today, Drybar upended the
traditional salon model by o ering spaces solely devoted to hair
blowouts.
Beyond hair care, companies like Heyday, FaceGym, SkinLaundry, and

others o er on-demand facials while startups such as Glamsquad send
stylists directly to people’s homes or o ces for makeovers, hair
styling, or manicures. Glamsquad partnered with CVS in 2018 for on-
demand beauty services in CVS stores.
Beyond salons and spas, medical aesthetic procedures and wellness

services are also being unbundled.
Botox bars such as Alchemy 43 and EverBody o er anti-aging

injectables and aim to enhance convenience and experience compared
to a doctor’s visit. Meanwhile, acupuncture clinic franchise Modern
Acupuncture just raised nearly $3M from Strand Equity Partners,
Cameron Diaz, and other investors.
Beyond services, the rise of at-home beauty devices by companies such

as Tria, Foreo, LightStim, and others similarly supports this trend.
Corporate patents also point to interest in beauty

devices: AmorePaci c, for example, led a patent for a “face
massaging device” that can “provide various massage functions…
similar to massage carried out by human hands” to prevent aging and
improve skin elasticity.
Such devices could potentially point to a future of at-home spa and

salon services.
Expect unbundled beauty services to continue proliferating and new

environments beyond the home to become more commonplace for
traditionally salon-based beauty services.
Conclusion
To understand the future of the beauty industry, context is key.
Consider the beauty industry in the context of broader cultural shifts.

For instance, in Japan, the resale market is even hitting cosmetics —
indicating the global impact of sustainability.
Beauty is taking notes from the the streetwear space, with beauty
brands increasingly leveraging tactics common in street culture such as
limited edition products and collaborations. Clearly, localization will
continue to play a big role as beauty brands take cue from adjacent
sectors.
Beauty retail and e-commerce will continue to evolve based on the

retail climate as well as shifting consumer preferences. Nordstrom
recently opened its agship with a host of branded beauty services
while Forever 21 just declared bankruptcy and announced the
shuttering of its Riley Rose beauty stores.
Beyond such cultural shifts, global events will continue to play a major
role in the future of the beauty industry. From the e ect of Brexit on
UK-based beauty brands to China’s tari s on personal care goods and
ingredients, beauty companies will have to consider implications for
hiring, third-party relationships, and more.
And of course, look towards regulation and company initiatives to

promote transparency — the underlying trend powering areas such as
“clean” beauty and “natural” products. Expect to see major
implications for cannabis-based beauty.
On the tech side, keep an eye out for new — or improved — technology
applications in the beauty industry. On the theme of personalization,
Mink resurfaced to make the world’s rst 3D portable makeup printer
available for pre-order earlier this year.
And so, the beauty industry is increasingly becoming tech-enabled.

Technologies including AI, 3D printing, and perhaps even blockchain,
will continue to make the beauty product lifecycle more e cient and
personalized for consumers.
But with all these buzzy applications, don’t forget about the major
opportunities around solving supply chain and operational
ine ciencies across the sector.
Between these short-term pressures and long-term changes, the

beauty industry will be an exciting space to watch in 2019 and beyond.
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15 Trends Changing The Face Of The

Get the full report

First name First name

There are some questions as to whether sky-high valuations in the

Now, new demographics, products, technologies, and consumer

From virtual try-on to ingredient transparency, the biggest

Connected beauty systems proliferate

Evidence-based skin analysis

Beauty pricing becomes transparent

Beauty further integrates with the wellness economy

Virtual try-on becomes point of di erentiation for

The Top Beauty Industry Trends of 2020

the rise of Connected beauty systems

Get the full report

Smart beauty devices are getting smarter.

CB Insights’ Industry Analyst Consensus shows the global beauty

For example, Shiseido’s Optune, an IoT-powered skincare system

Meanwhile, Johnson & Johnson has developed a host of personalized

Most of these devices direct customers to the parent brand’s products.

Beyond corporate initiatives, more independent players have entered

Though beauty devices enable increased personalization for consumers

Clarisonic has aimed to combat this by launching a loyalty program

A ordability is also a major question, as most smart beauty devices are

While beauty is a hot category right now, consumer hardware is a

Chinese surveillance company Face++ even o ers machine vision-

Source: Hack & Craft

As IoT and other technologies become more widespread, expect to see

Big beauty incubates its own disruptors, ramps up tech acquisitions

In recent years, there’s been a notable increase in both incubation and

After seeing the success of independent players — such as vertically

There has also been a rise in corporate accelerators and funds, to

Sephora Accelerate has been investing in and supporting female

In October, Shiseido purchased cult “clean clinical” skincare brand

Beyond brand acquisitions, big beauty is also going after tech.

L’Oreal’s acquisition of virtual try-on technology company Modiface

Notably, Coty recently announced its partnership with direct sales

Though L’Oreal’s Seed Phytonutrients has served as a positive story for

Clients can read more about independent and corporate-owned beauty

A post-Fenty society: expanding the de nition of inclusive beauty

Since Fenty Beauty’s launch in 2017, “inclusive beauty” has become an

Understanding the di erence between “niche” and “underserved”

Below we outline a few of these markets, which are becoming integral

Male personal care & beauty routines

While the mainstream media has historically targeted women when it

Personal care and pharmaceutical companies have been selling male-

Since Unilever’s $1B acquisition of Dollar Shave Club in 2016, M&A of

Private players like unicorn Hims, which aims to be a holistic male

Gender-neutral beauty products

To cater to this trend, beauty incumbents like Maybelline and Covergirl

Though there’s been a lot of buzz around more e ectively targeting

Beyond Fenty, a number of inclusion-focused brands have recently

Beauty companies are also thinking about how to target speci c

For example, Latinx consumers have become an increasingly important

In targeting people of color, companies must be mindful of the risk of

Ultimately, brands that can cater to these demographics without

Though much of the marketing in beauty has focused on millennials

Not only is there a dearth of product o erings targeting older

Be on the lookout for more beauty brands and corporate initiatives

Teens, tweens, and children

Though the category is much smaller than adult skincare, it grew by

In 2018, luxury skincare brands such as Pai Skincare, Dr. Barbara

Source: Dr. Barbara Sturm