The Future of the Beauty Industry: Key Trends for 2024

The beauty industry is undergoing significant change, rapidly adapting to new requirements and technologies. We are seeing a growing interest in eco-friendly and ethical products, leading to an increased focus on sustainability.

Technologies such as augmented reality for virtual testing are becoming standard and product personalisation is gaining popularity. In response to the growing demand for customised solutions, brands are beginning to offer cosmetics tailored to specific skin and hair types.

In this article, we take a closer look at the key trends that will shape the future of the beauty industry in 2024.

Sustainability and eco-friendliness

According to Nielsen, 66% of consumers are willing to pay more for sustainable and ethically produced beauty products. Statista estimates that the global natural cosmetics market will generate a total revenue of $13.9bn in 2024, with analysts forecasting it to reach $18bn by 2028 at a CAGR of 6.8%.

Consumers are increasingly choosing brands that actively follow sustainability and social responsibility, and well-known manufacturers are actively using this in their promotion.

For example, Drunk Elephant has become famous for its commitment to creating products without toxic additives and artificial colours. You won’t find parabens, sulphates and phthalates in their range, and their packaging is made from recycled materials. Another example is Lush, this brand also demonstrates high standards of sustainability. Their products are made from natural ingredients and are presented in packaging that is recyclable. The Aveda brand also meets these requirements by offering hair care products that are created using organic ingredients and sustainable production methods, and their packaging is made from recycled materials, emphasising their commitment to environmental and social responsibility.

At the same time, consumers are becoming increasingly aware and are looking to choose not only eco-friendly but ethically produced products. This is why Dr. Hauschka products are rapidly growing in popularity – this company not only uses natural and organic ingredients, but also strictly adheres to principles that exclude testing their cosmetics on animals. Their Leaping Bunny certification confirms their humane approach to manufacturing, reflecting the growing desire for more responsible and informed consumption. This trend is sure to deepen in the future.

Personalisation and customised solutions

In recent years, personalisation in the cosmetics industry has become more than just a trend. It is the basis for creating unique solutions that meet the needs of each customer. Consumers increasingly expect products and services to be tailored to their individual characteristics and preferences. This demand requires companies to innovate by actively using technology to analyse and predict customer needs. For example, according to Bolt research, 75% of consumers are willing to pay more for beauty products that offer personalised solutions.

One prime example is Function of Beauty, which offers customised formulas for hair and skin care. Customers can complete an online questionnaire to identify their specific needs and receive solutions created specifically for them. Such a personalised service fully satisfies users’ needs and strengthens their brand loyalty. When it comes to decorative cosmetics, ILIA Beauty is worth mentioning – this brand offers personalised recommendations for shade and texture matching, allowing customers to find the perfect products to suit their skin type and personal preferences.

Inclusivity

Inclusivity and diversity are becoming key themes in the cosmetics industry, reflecting the need to cater to the needs of all consumer groups. These concepts involve creating products and advertising campaigns that take into account the diversity of human skin and hair types, colours and cultures.

Inclusivity in the beauty sector aims to ensure that every customer can find beauty products that match their unique characteristics and needs, and see themselves in advertising and branding. This is a highly topical issue – according to Mintel, 47 per cent of consumers believe that brands should actively demonstrate diversity and inclusivity in their products and advertising. This requires companies to significantly expand their palette of hues and textures, and work to create an inclusive image that respects and represents different ethnic, age and cultural groups.

A prime example of the successful realisation of inclusivity is Fenty Beauty by Rihanna. Launched in 2017, the line offered a wide range of foundations in 40 shades, which was a revolutionary step for the cosmetics industry. This approach not only met the needs of consumers, but also inspired other brands to create more diverse product lines aimed at recognising and respecting different skin types. Inclusivity in cosmetics has become a real necessity for brands seeking to be relevant and close to their customers.

Innovation in technology

An important driving force in the beauty industry is undoubtedly technological innovation. They are transforming the way companies interact with customers and develop their products. For example, artificial intelligence (AI) is being actively adopted by the beauty industry to create personalised solutions that cover not only skin care but also hair care. AI helps analyse data on skin and hair conditions and customer preferences, allowing brands to offer accurate recommendations for products and care methods that are tailored to individual needs.

For example, L’Oréal uses AI in its ModiFace app, which allows users to virtually try cosmetics and receive advice based on analysing their skin and preferences. Augmented reality (AR) is no less in demand; this innovative solution allows customers to virtually try on cosmetic products, which simplifies the selection and purchase process.

The Internet of Things (IoT) plays a special role in the introduction of IT solutions in the beauty sector. For example, L’Oréal has developed a smart tool called Kerastase Hair Coach, which monitors the condition of the hair and scalp. This device syncs with a mobile app and provides personalised care recommendations based on hair condition and product usage habits. These technological advances are significantly improving the consumer experience and creating new opportunities for brands to better understand and fulfil their customers’ needs. IT innovations continue to shape the future of the cosmetics industry by providing smarter, more personalised and transparent approaches.

Thus, in 2024, the beauty industry is undergoing a remarkable transformation with the introduction of innovative technologies, a focus on sustainability and ethical practices, and increased inclusivity and personalisation. These trends are changing conventional approaches to self-care and creating new opportunities for growth and development in the industry. The future of beauty will be driven by the desire for more sustainable and responsibly designed products that meet the needs of the modern consumer. We can expect these trends to intensify, shaping a more informed and innovative future for the entire industry.

Sources:

66% of Consumers Willing to Pay More for Sustainable Goods, Nielsen Report, Ashton Manufacturing.

Natural Cosmetics – Worldwide, Statista.

Beauty & Personal Care – Worldwide, Statista.

75% of Shoppers Would Pay More for Beauty Products to Get Personalized Online Shopping Experiences, PR Newswire, May 31, 2023.