CB Insights - Beauty Trends 2019 PDF

15 Trends Changing
The Face Of The Beauty

Industry In 2020 2019
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Table of Contents
Product Development 6
• Connected beauty systems proliferate
• Big beauty incubates its own disruptors, ramps up tech acquisitions
• A post-Fenty society: expanding the definition of inclusive beauty
• Beauty goes global…and local
Manufacturing 20
• 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 32

• Beauty pricing becomes transparent
• Alternative retailers bet on beauty
Marketing & Merchandising 39

• Beauty further integrates with the wellness economy
• Big tech and beauty
• Ingredient transparency trumps clean beauty
Customer Experience 54
• Virtual try-on becomes point of differentiation for beauty brands
• Unbundling of the spa & salon continues
Conclusion 62
15 Trends Changing The Face Of The Beauty Industry In 2020 3

2019 has been a banner year for beauty
tech. From big beauty corporates making
their first 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.
It’s been a big year for the beauty industry. The sector saw a
slew of high-profile 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 off. 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 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.

Product Development
THE RISE OF CONNECTED BEAUTY SYSTEMS
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 effects 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 first 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.
Affordability 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 benefiting 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 finding something to fix 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 offers 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 affordable 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 efforts to find the next and best in beauty.

Sephora Accelerate has been investing in and supporting female
founders since 2016. L’Oreal offers 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-profile 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
first 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 efforts 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 DEFINITION 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 difference 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 defining 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 offer 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 effectively 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 specific

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 affluent 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 offerings 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 offers 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-specific
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 artificial intelligence to personalize

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

Kinpo Group, offers an Amazon Alexa voice-controlled smart mirror
that provides users with beauty advice. The HiMirror leverages AI
to offer 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 profile, which change based on the monthly test,
inputs from users on season or lifestyle changes, and more.
Beyond the use of AI, Curology offers 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 specific
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 offering beauty-focused DNA testing kits, which
can curate product recommendations or branded, personalized
products based on users’ specific 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 difficult. 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

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

offers 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
first brands to have its organic ingredients studied by academia for
their specific skin benefits.
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
offers vegan collagen technologies specifically 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
benefits — 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 offers 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 firms 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
efficiencies 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 specifically 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 efforts to reduce their carbon footprint, beauty brands both large

and small are embracing recyclable and refillable 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 offers personal
care products such as deodorant in refillable dispensers.
Companies such as HiBar are also emerging to offer 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 efficacy.
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 affordable

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

continue to emphasize transparency and affordability 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 offerings and directly compete with beauty retailers
like Sephora.
Companies such as Anthropologie, Urban Outfitters, Madewell,

and others have forayed into beauty offerings 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 offline distribution: makeup booths & vending

machines
Other offline alternative distribution channels present new

opportunities for beauty retail to flourish.
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

traffic, such as malls, offices, 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 offer 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 influencers & 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 differentiation 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.
Influencer-launched beauty brands can offer 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 influence 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 differentiation. 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.
Vitamins & supplements
While beauty supplements aren’t a new concept, startups are

increasingly offering suites of vitamins and supplements that
promise beauty benefits 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 fitness 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, fitness

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, Amorepacific recently tapped into the trend with the
launch of its supplement brand CUBEME in 2018. The brand, which
sold out during its pre-launch, offers beauty supplements that aims
to combat urban lifestyle stressors, promote weight loss, and more.
Expect more partnerships in this space — such as beauty

and fitness 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 affordable treatments across the region.

Companies have raised millions of dollars for different use cases
across the medical aesthetics space. This includes Eunogo,
which offers 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 offering Botox
injections, fillers, laser treatments, and other treatments earlier this
year while 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 significantly 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
offer amenities ranging from fitness 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 offer 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 influencer-curated beauty podcasts.
Source: Voicebot

With tech giants expanding into smart home devices, voice-
activated beauty skills offer 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 specific
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
influence 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 specific
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 flip 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 Thinfilm 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 offering 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-certified 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 different 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 specific 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 Benefit

Cosmetics partnered with Modiface to launch an augmented
reality tool to help users try on different 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 selfie

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

can liven up product demos, boosting traffic 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 first beauty brand to incorporate augmented reality (AR)
into its WeChat application.
WeChat, which rolled out its AR effects capability this summer,

offers clear advantages for beauty brands — especially the app’s
massive scale. WeChat boasts a daily user base of 1B along with a
strong influencer 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 specific 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 selfie 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 offering spaces solely devoted to hair
blowouts.
Beyond hair care, companies like Heyday, FaceGym, SkinLaundry,

and others offer on-demand facials while startups such as
Glamsquad send stylists directly to people’s homes or offices 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 offer 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:

AmorePacific, for example, filed 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 flagship 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 effect of
Brexit on UK-based beauty brands to China’s tariffs 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 first 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
efficient and personalized for consumers.
But with all these buzzy applications, don’t forget about the
major opportunities around solving supply chain and operational
inefficiencies 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.

WHERE IS ALL THIS DATA FROM?
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has the underlying data
included in this report
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15 Trends Changing

The Face Of The Beauty

CB Insights is a tech market intelligence

CLICK HERE TO LEARN MORE

• Big beauty incubates its own disruptors, ramps up tech acquisitions

• A post-Fenty society: expanding the definition of inclusive beauty

• Beauty goes global…and local

• Beauty starts at the lab … and the farm

• Beauty manufacturing M&A on the rise

• The race towards sustainable packaging

Pricing & Distribution 32

• Alternative retailers bet on beauty

Marketing & Merchandising 39

• Big tech and beauty

• Ingredient transparency trumps clean beauty

• Unbundling of the spa & salon continues

15 Trends Changing The Face Of The Beauty Industry In 2020 3

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

Now, new demographics, products, technologies, and consumer

15 Trends Changing The Face Of The Beauty Industry In 2020 4

In this report, we look at the latest innovations across every part

15 Trends Changing The Face Of The Beauty Industry In 2020 5

THE RISE OF CONNECTED BEAUTY SYSTEMS

Smart beauty devices are getting smarter.

CB Insights’ Industry Analyst Consensus shows the global beauty

Big beauty corporates have been keen to showcase their tech

15 Trends Changing The Face Of The Beauty Industry In 2020 6

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

Meanwhile, Johnson & Johnson has developed a host of

15 Trends Changing The Face Of The Beauty Industry In 2020 7

Beyond corporate initiatives, more independent players have

Swedish beauty and personal care device brand Foreo was

15 Trends Changing The Face Of The Beauty Industry In 2020 8

Clarisonic has aimed to combat this by launching a loyalty

Affordability is also a major question, as most smart beauty

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

15 Trends Changing The Face Of The Beauty Industry In 2020 9

Chinese surveillance company Face++ even offers machine vision-

Source: Hack & Craft

As IoT and other technologies become more widespread, expect

15 Trends Changing The Face Of The Beauty Industry In 2020 10

Privately owned beauty brands are experiencing growth faster than

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

After seeing the success of independent players — such as

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

15 Trends Changing The Face Of The Beauty Industry In 2020 11

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

Notably, Coty recently announced its partnership with direct sales

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

Clients can read more about independent and corporate-owned

15 Trends Changing The Face Of The Beauty Industry In 2020 12

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

Understanding the difference between “niche” and “underserved”

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

Male personal care & beauty routines

While the mainstream media has historically targeted women

15 Trends Changing The Face Of The Beauty Industry In 2020 13

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

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

Gender-neutral beauty products

“Boy beauty” and gender neutral products support this greater