Since the pandemic in 2020, the global health & beauty retail market, and cosmetics in particular, has seen impressive and sustained growth and is expected to surpass $100bn globally in 2023.
With such a buoyant market, health & beauty retailers could see significant growth if they are are attuned to market trends. We’ve picked out some of the top trends that health & beauty retailers should watch out for in 2023.
Consumers are becoming increasingly conscious of the environmental impact of their purchasing decisions. Thus, there is a growing demand for sustainable and eco-friendly cosmetic products. This trend is expected to continue in 2023, with more consumers seeking products that are packaged in recyclable or biodegradable materials, use natural and organic ingredients, and are cruelty-free.
Read our case study on Asan Cup, a sustainable and eco-friendly menstrual cup
The pandemic has accelerated the digital transformation of the health & beauty market. More consumers are shopping online, and brands are investing in e-commerce and digital marketing to reach their customers. In 2023, we can expect to see more brands using augmented reality and virtual reality technologies to provide a more immersive shopping experience for their customers.
In an increasingly online world, social media has become a big part of many people’s daily routines. With such high usage and engagement, social media platforms have pivoted towards in-app purchasing and becoming effectively online stores.
With this and the rise of influencers and celebrity brand ambassadors, online sellers are seeing huge sales volumes through social media with comparatively little ad spend vs more traditional search channels.
In fact, 40% of Gen Z turn to TikTok first for their online searches before using an online search engine like Bing or Google. This positions social media right at the front of mind for an audience that are habitually buying online.
Consumers want products that are tailored to their specific needs and preferences. In response, brands are offering more personalised products and services, such as custom foundation shades and personalised skincare routines. In 2023, we can expect to see more brands leveraging data and technology to provide even more personalised offerings to their customers. This also extends to personalised packaging to enhance brand value and cosmetics order fulfilment.
Take a look at how Bianca Miller launched her skincare brand Hian Skin with cosmetics order fulfilment support from Huboo
Consumers are demanding more diversity and inclusivity in the health & beauty industry. Brands are responding by expanding their shade ranges, featuring models of different races, ages, and body types in their advertising, and offering products that cater to a wider range of skin and hair types.
Health and wellness are increasingly important to consumers, and this trend is reflected in the health & beauty market. In 2023, we can expect to see more products that promote holistic wellness, such as skincare products that contain adaptogens or CBD, and makeup products that are infused with vitamins and antioxidants.
Overall, the health & beauty retail market in 2023 is expected to be characterized by sustainability, personalisation, digital transformation, social commerce, inclusivity and diversity, and wellness-focused products.
