mac cosmetics market share 2020

Since Fenty Beautys 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. For instance, in May 2021, Huda Beauty, a cosmetic brand headquartered in Dubai, UAE, announced the launch of its new cosmetic collection, GloWish. Recently, the virtual try-on space has seen a flurry of activity, including: Beyond skincare and makeup, hair and nail color also present use cases for virtual try-on tech. Pandemic disrupted the entire world and affected many industries. The partnership was named Best In-Store Technology Innovation in the beauty industry by Glossy. In addition to its traditional e-commerce site, it also sells beauty products on its Amazon Fresh and Whole Foods online grocery platforms a distribution channel that received a major boost during the pandemic and presents an opportunity for Amazon to cross-sell beauty products alongside consumers regular food orders. At The Innovation Lab, consumers no longer have to swatch foundation shades endlessly, checking in-store and outdoor light before making a purchase. Presently, cosmetics have become an indispensable feature of modern lifestyle of individuals. the global market value of natural cosmetics is projected to hit $50.5B by 2027. Even major brands took a hit: Coty (owner of CoverGirl and Rimmel) saw its share price drop 52% at the end of March, while Ulta Beauty 's stock saw a 29% decline though both have . If customers dont have a superior experience, theyre not likely to spread the word to friends or on social media. Beyond quizzes, corporates have kept up by expanding to in-home devices that can gather more granular, specific user data to measure skin condition or deliver products more precisely. Both companies raised funding in Q320. A market in which L'Oral is the global beauty leader. And the top five websites hold 40% of the total organic search market share. [Online]. The presence of large players in the region provides huge opportunity for the consumers to have access to different beauty brands and select products according to their choice. The artist is very important to the community, and communities are very important to us we want to emphasize that. Mr. Pinatel said. This indicates that MAC is involved in a lot more conversations than NARS. ET by Tomi Kilgore. But, in recent years, cosmetic brands have become more inclusive, dramatically expanding color options. Some examples of amazing digital customer experiences include: For example, Ultas Glam Lab lets customers see what theyll look like using different types of color cosmetics like mascara and eyeshadows, as well as with different hair color or eyelashes. But thanks to new on-demand technologies, beauty services are no longer tied to traditional locations. *Taxes/Fees, if applicable will be added during checkout. MAC Cosmetics Headquarters 2316 Delaware Ave P.O. What are the product segment? Cosmetics & Personal Care Products Direct Selling Market, https://www.fortunebusinessinsights.com/makeup-market-102587, Rest of Middle East & Africa (By Product), Granular Research on Specified Regions or Segments, Companies Profiled based on User Requirement, Broader Insights Pertaining to a Specific Segment or Region, Breaking Down Competitive Landscape as per Your Requirement, Other Specific Requirement on Customization. 2022 Annual Report. Author(s) : Nitesh C, Himanshu V , Roshan D, Global Opportunity Analysis and Industry Forecast, 20212027, AVON PRODUCTS, INC, KAO CORPORATION, LORAL S.A., ORIFLAME COSMETICS S.A., REVLON, INC., SHISEIDO COMPANY, LIMITED, SKIN FOOD CO., LTD., THE ESTEE LAUDER COMPANIES INC, THE PROCTER& GAMBLE COMPANY, UNILEVER PLC. MAC Shanghai custom 3D prints eyeshadow palettes for customers, for example, while Shespoke has developed software that allows it to manufacture custom-mixed lipsticks at scale. A wave of startups and corporates are developing innovative material solutions to concentrate the active ingredients in shampoo, hand soaps, and more. I appreciate the timeliness and responsiveness of you and your team., (applicable to 1 report only for the same license type). Copyright 2023 CB Information Services, Inc. All rights reserved. The base year calculated in the cosmetics market report is 2019. Inclination of Consumers Toward Natural Cosmetic Products to Assist Market Growth. Following 2020s spotlight on racial justice and equity, a newfound focus on funding diverse brands has emerged as well. Companies like Deciem are using transparent pricing models and established, science-backed ingredients that are cheaper to manufacture ultimately driving the price of products down. Allure and Byrdie rank first and second, and their websites attract between 60 and 80 million organic search visitors overall each year. Remarkable job and great efforts by your research team. However, even Amazon has challenges competing in various beauty market sectors. The surge of consumers focusing on self-care amid the pandemic has only accelerated the emergence of wellness as a holistic trend extending to traditional beauty areas like skincare. Jun. With this technology, customers can try on hair colour and makeup products realistically and in real time, or obtain a skin analysis and personalised skincare routine. Many of todays brands, such as Stryx, Shakeup Cosmetics, and War Paint, are employing D2C distribution and refreshed packaging to attract a new generation of male consumers. Virtual try-on tech leverages augmented reality to allow shoppers to test how different beauty products will look without needing to reach for the makeup remover wipes afterward. While this type of content marketing is relatively new, its going to be increasingly important this year and coming years. Brand representatives can also interact with group members, answering questions, addressing any problems that arise, and even getting feedback on various topics. Additionally, players are focusing on strengthening online and offline distribution to expand its presence. When we zoom in to examine 109 product-related keywords within the Skincare market (which represent 4.64 million annual Google searches in the U.S.), six of the top 10 Google search results are publishers or blogs. In addition to scoring an amazing discount, MAC Cosmetics fans will still . It has over 7000 product offerings and 100 eye shadow shades. Who are the leading players in the global market? Major countries in each region are mapped according to their revenue contribution to the global market industry. Atolla also uses AI capabilities to customize facial serums for consumers by using data collected through quizzes and tests (measuring oil, moisture, and pH levels) that are then processed by the companys algorithm. Face Segment to Dominate the Market Owing to Rising Product Demand. Meanwhile, LOral, in partnership with tech startup Gjosa, developed a device called the Water Saver that reduces the amount of water required at rinsing stations in salons. Think about that. Social media has become a critical way for teenagers to find the trendiest products in line with their clean beauty needs and beyond edutainment for beauty and skincare products. All prices in USD, To ensure high-level data integrity, accurate analysis, and impeccable forecasts, On-demand customization of scope of the report to exactly meet your needs, Targeted market view to provide pertinent information and save time of readers. Global digital advertising spending is increasing year after year, accounting for a growing proportion of total media spending, estimated to average almost 54% worldwide in 2020. Rise in demand for various cosmetics products among customers makes way for manufacturers to come up with herbal or organic skin care products along with affordable prices and eco-friendly packaging. Corporates like Unilever, P&G, and Target have all tapped into this trend through acquisitions, accelerators, internal brand incubation, and more. In June 2020, Glossier committed $500K in grants to 16 Black-owned beauty businesses, while LOral recently partnered with the NAACP to grant 30 $10K grants to Black-owned beauty businesses. In 2022, the global cosmetics market experienced growth of over 16 percent in comparison to the previous year. Furthermore, the process of growing ingredients in a lab reduces the devastating impacts of farming, fishing, extraction, or the involvement of intermediaries which can drive up the price and carbon footprint of raw materials extracted from the earth in lengthy, global supply chains, said sustainability consultant and All Earthlings founder Sarah Jay in an interview with Coveteur. This emphasizes relationships and long-term beauty marketing campaigns rather than superficial one-off transactions. Virtual try-on cannot completely replace the in-store experience of interacting with a sales rep and experiencing the weight and texture of physical products. Here are just a handful of content marketing examples to consider for your strategy. 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 incubators and accelerators, with examples including: LOrals Seed Phytonutrients and Unilevers Skinsei are just a few examples of internally incubated brands. This also helps in increasing revenue of companies operating in this industry. On the basis of category, the skin and sun care products segment constituted a major cosmetics market share in 2019; however, the deodorants & fragrances segment is projected to experience growth at the highest CAGR during the forecast period. Global beauty industry revenue is expected to top $716 billion by 2025, and online sales are projected to make up 48% of all beauty sales by 2023. Despite their momentum, companies tying beauty to overall well-being face challenges around perceptions of effectiveness and trust. maccosmetics.com's audience is 24.35% male and 75.65% female. 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. This digital marketing channel is especially effective when combined with SEO. Terakeet analyzed current trends and search data with our proprietary software, Carina, to extract some key marketing insights. Sephora has been testing a pilot recycling program in Utah and Colorado since 2019; no expansion plans have been announced. In 2020 the company invested in the social commerce software company, Replika Software, in order to increase ecommerce sales and peer-to-peer selling. With ever-increasing online sales, digital marketing is increasing in importance to beauty brands. Below we outline a few of these markets, which are becoming integral to defining the future of inclusive beauty and that should remain a high priority for brands looking to capitalize. Since Unilevers $1B acquisition of Dollar Shave Club in 2016, M&A of mens personal care brands has spiked, with deals including: D2C brands targeting mens personal care like Bevel, Lumin, Huron, Scotch Porter, Stryx, Hawthorne, and more have all reported growth in 2020, according to WWD. Though brands commonly cite clinical studies alongside their products, consumers may become skeptical if they dont notice a difference in a real-world scenario, especially for products positioned as having a direct impact on health. With smart home concepts continuing to gain traction, beauty brands will have to consider how voice technology and partnerships with big tech could be used to address shopper pain points, from personalized recommendations to conveniently booking reservations. An efficacy facts panel from a product label. Inclusivity is also playing an increasingly important role in the beauty industry. Companies are focusing on developing powder based products that also protect the skin other than just enhancing the appearance. Google works with brands to use its search data to better understand beauty shoppers preferences. Last year, LOral launched Perso, its AI-powered device to formulate and dispense personalized skincare, lipstick, and foundation. Livestreaming, which refers to livestreamed shopping trips where viewers can purchase the items being featured, is offering a new way to engage younger audiences and boost sales. During recessions and economic downturns like the Covid-19 crisis, beauty tends to be a resilient category due to whats known as the lipstick effect consumers tendency to see beauty as an affordable, small luxury during uncertain economic times. MAC Cosmetics is a leading brand because of its market segmentation. Mac Cosmetics is partnering up with the Whitney Houston Estate to launch a makeup range. "Marketing plan for MAC Cosmetics." January 21, 2020 . Moreover, the need for cosmetic products among beauty professionals is projected to foster the demand for the entire market. For example, companies like Heyday, FaceGym, and Skin Laundry offer on-demand facials. Livestreaming beauty shopping is taking off on platforms like Facebook-owned Instagram and Alibabas e-commerce site. Nielsen notes that 92% of people trust recommendations made by friends or family more than any other advertising. The different market segmentations allow it to cater to the vast MAC Cosmetics target market. Often, though, lesser-known beauty experts who have a more dedicated, loyal, and sincere following deliver better results for brands. Since first establishing itself as a go-to provider of AR for beauty tech in 2017, the Taiwan-based beauty company has expanded its virtual try-on offering, leveraging 3D face AR technology to let users virtually test an array of makeup products. There is still no [cosmetics] company that has been able to integrate personalization into their business models, Shiseido president Masahiko Uotani said in an interview with the Nikkei Asian Review. Beauty brands and conglomerates will increasingly use varied pricing strategies to appeal to a broader range of shoppers, with the goal of remaining essential to their routines. The easy-to-read efficacy testing panel highlights the difference products have made in studies looking at metrics like hydration, firmness, oiliness, and more. It also helps control excess oil around the nose and forehead area, preventing the need for frequent reapplication and further increasing its demand. Thank you for contacting us, our sales representative will get in touch with you shortly! MAC Cosmetics was founded in 1984. Synthetic beauty ingredients are also getting attention. And even among more product-focused searches, informational websites like Allure, Good Housekeeping, and Byrdie performed well. 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. Some brands are able to launch new product lines in just 3 months. Expect to see livestream shopping becoming more popular in the US after already taking off in China. Today, MAC has opened the doors of its newest design. The major currents trends will shape the market in the positive side. However, chemicals used in manufacturing of cosmetic products can harm an individuals skin or other parts of the body. The growing awareness of consumers toward personal grooming is driving the demand for makeup products. Find out which beauty brands are winning the Google organic market share wars (and which ones are not). Face powder is highly used as a base to apply bronzer, contour, or blush. U.K., Germany, France, Italy, Poland, and Spain are the prominent markets of . Pause Well-Aging focuses on menopausal skincare products that address perimenopausal concerns such as hot flashes, night sweats, and skin elasticity. The formulations of cosmetic products consist of numerous chemical constituents, including synthetic chemicals, coloring agents, sulfates, and others. Going forward, expect to see beauty brands and tech giants alike turn to virtual try-on to gather shopper data and make more personalized product recommendations. Many key manufacturers such as L'Oral S.A., Este Lauder Companies, Honasa Consumer Private Limited, and others in this industry also shifted their production toward natural cosmetic products. Already, corporates are taking note. . LOral, for instance, has credited its diverse pricing strategy for enabling it to absorb even severe market conditions like in 2020.. Beauty brands such as Unilever, Este Lauder, LOral, Glossier, and Clinique are nearly invisible in the non-branded organic search landscape across skincare, makeup, and hair care. Thank you!, I recommend Fortune Business Insights for their honesty and flexibility. In recent years, one of the biggest ways ingredient transparency has manifested is through the clean beauty movement, which focuses on natural and organic products. Stay abreast of your interest areas. Get access to the only platform that combines expert-led research with in-depth data on the tech industry. Its one of the most effective means of building brand love. Ingestible beauty is one wellness area gaining traction. Profit from the additional features of your individual account. Set in relation to the 13% usage share of the brand, this means that 85%. In the United States, beauty market share by revenue is segmented by the following beauty categories. LOral is looking to bring it to 10,000 salons in coming years and says it can save up to 80% of water used in rinsings. Other companies in the space are developing devices for spa services at home, for example: But the movement isnt limited to cosmetic services its also expanding to wellness. In the midst of the Covid-19 pandemic, spa and salon appointments have looked quite different if they are available at all. Big brands with brick-and-mortar locations were hit hard by COVID-19 lockdowns, forcing marketers to come up with new ways to sell to customers. What was the value of the global makeup market in 2021? As the emphasis on ingredient education grows, brands are also shifting toward ingredients backed by scientific methods or endorsed by doctors and clinical professionals to prove safety and efficacy. Four of the top five skincare market share holders are online publishers. Consumers are continuing to realize that not all synthetic ingredients are detrimental, and that biosynthetic ingredients offer a viable, more sustainable alternative. New York, NY 10018. Cosmetics, and The Ordinary have moved up in the rankings, becoming some of the top skincare brands for teens over the past year, largely thanks to influencers on the platform. The supermarkets & hypermarkets segment is expected to capture a significant makeup market share during 2022-2029. Though theres been a lot of buzz around more effectively targeting people of color in the beauty sector, theres still much to be done. One of The Ordinarys peeling solutions racked up over 50,000 sales in the span of two weeks following a viral video featuring the serum. Beauty brands have long pursued personalization, but have experienced plenty of starts and stops between lack of technological advancements, poor data collection processes, and nascent business models, among other factors. As more people research and purchase beauty products online, its critically important for brands in the cosmetics industry to seize the growing opportunity of organic search. As people have spent more time working and socializing virtually, video filters could prove to be another expanding use case for virtual makeup. The videos should also be a mix of promotional and informational, with the emphasis falling on informational. We are happy with the professionalism of your in-house research team as well as the quality of your research reports. While MAC may have provided the blueprint for the brands that followed, the company hasn't been terribly affected by their competitors' success. Newer initiatives include: Biodegradable packing is another avenue of interest that has seen traction, pioneered by industries like food and beverage. The global cosmetics market recovered markedly in 2021, rebounding to 2019 levels thanks to a very dynamic skincare category and growing digitalisation driven by the boom in e-commerce and social commerce. Need to talk to an expert? Leading beauty brands In 2020, the leading beauty manufacturer was French cosmetics company L'Oral, which recorded $33.93 billion in revenue. Few forms of brand marketing are more effective than Word of Mouth (WOM). Download our beauty industry report below for more beauty industry insights. While some consumers saw an increase in their disposable income during the pandemic, for many shoppers, the economic uncertainty of the pandemic has driven a renewed focus on products that carry more value at cheaper price points. . Tech companies extensive reach which can include search data, smart home devices, AI capabilities, e-commerce platforms, and more offer compelling opportunities to cash in on the beauty market. 2021 Annual Report. The website provides the same product information and customization options as the physical store. A. Topicals and Musely, for example, are targeting skin conditions like eczema that would normally require a trip to see a specialist to get a prescription. To use individual functions (e.g., mark statistics as favourites, set The long-term potential is driven, most notably, by the rise of the middle and upper income classes, as well as by the growing number of senior citizens and growing urban population on the lookout for products that meet their diverse aspirations. Previous perks have included MAC Cosmetics coupons for 25% off storewide and a free gift with orders of $65+. But there are no half-measures about Mr. Pinatels plans for MAC. Videos give people the opportunity to see a product in action, which is particularly important for cosmetics products. Today MAC Cosmetics is one of the top 3 most profitable global makeup brands. The research report analyzes the industry in-depth and highlights crucial aspects such as prominent companies, product types, and sales channels. Social commerce enables consumers to interact with brands or purchase a product or service via non-traditional channels, online forums, or on social media.. Some companies are also introducing waterless or water-reduced initiatives to salons. Unilever, LOreal, Avon, Oriflame Cosmetics AG, Revlon, Inc., Coty Inc., The Estee Lauder Companies Inc, The Procter & Gamble Company, Kao Corporation, and Shiseido Co. Ltd are the leading players worldwide. Many beauty brands including Ulta Beauty, Bluemercury, and Sephora have begun offering curbside pickup to limit germ spread during the pandemic. Custom printing, in which companies formulate products specifically for each user. Opinions expressed by Forbes Contributors are their own. Furthermore, increase in penetration of various online portals globally and rise in number of offers or discounts attract large consumer base to purchase skin care cosmetics products through online channels. Branded communities are the wave of the future, and smart beauty brands will make them a priority. Certain brands will benefit by working with mega influencers and entrepreneurs like Huda Kattan, Nyane Lebajoa, or James Charles. Gen Z-focused brands such as UK-based Plenaire and Bubble have also been on the rise. T&C*. AI retail is firmly what he believes is the next frontier. Moreover, how are online sellers capturing market share from brick-and-mortar retailers? The rising popularity of powder foundations among young users who demand light coverage is driving segmental growth. The cosmetics industry has been segmented on the basis of category, gender, distribution channel, and region. Even informational content in the middle of the funnel can grow brand awareness with new prospective customers. Excessive use of certain creams and powders and hair coloring products can result in rashes or patches on the skin and permanent hair graying.
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