What is the future of beauty?

What are the upcoming trends in skincare, makeup, and wellness? In what direction will the global beauty market go? These and many other questions have been addressed by "A New Lens on Beauty," the report created by IRIS Ventures, a leading consumer growth company, in collaboration with trend forecasting institute WGSN.

The Future of Beauty Lies in Longevity

The first clear insight is a new concept of beauty, more nuanced, multifaceted, and with a holistic approach, where products and practices are geared towards long-term physical and emotional well-being. The challenge for the industry will be longevity, understood as aging well, which goes hand in hand with new narratives related to age "where the young mature faster and the elderly act young and live longer". While technological advancements in product formulations and the impact of COVID-19 have led to a significant shift in consumer values and needs, the report predicts that retail sales of beauty products will continue to be essential, confirming the success of stores like Sephora and Ulta Beauty, and that "premiumization will drive growth in the luxury, prestige, and masstige segments, particularly in skincare". Let's delve into how IRIS Ventures and WGSN see the beauty sector evolving, between economic forecasts and trends.

The Growth of Beauty, from Haircare to Makeup

Consumers of all ages are redefining beauty standards and focusing on well-being. There is greater attention to self-care 360°, especially in skincare, the main growth driver of the global beauty sector, which is expected to generate $186.6 billion in revenue in 2024 and grow at a CAGR of 3.08% to reach $210.7 billion by 2028. In the creams and serums we will use, scientific formulations and advanced technology will meet premium treatments (which will account for 29% of sales by 2025) and holistic regimes. The hoped-for result will be aging well. In haircare, which will generate revenue of $93.74 billion in 2024 and grow at a CAGR of 2.80% from 2024-2028, there will be a greater emphasis on holistic hair and scalp health, wellness, premium products, as well as inclusion by abandoning Eurocentric narratives thanks to natural hair education programs. The hot topics in the category will be hair loss, damage repair, hormonal hair, and hair therapy, which will include treatments and styling along with mental health.

The importance of perfumery and fragrances

The most performing sector, however, is perfumery, thanks to a new wave of disruptive brands, innovative formats, and Generation Z, who see perfume as a form of self-expression, choosing niche fragrances, natural scents, and emotional perfumes, providing a multisensory engagement. The data? McKinsey predicts that the perfume market will reach a value of $76.70 billion by 2028 and that perfumes will surpass color cosmetics and skincare globally between now and 2027.

On the other hand, the future of makeup is driven by foundation and lipsticks, with increasing interest in products such as tinted oils and balms for the lips like the honey-infused lip oil with hyaluronic acid from Gisou. The wellness category also has excellent forecasts, reaching $6.82 billion by the end of 2024 and growing by 8.6% (CAGR) by 2027, reaching $8.47 billion. Gen Z and Millennials are critical to this success, who invest in products and services that promote their physical, mental, and emotional well-being. Central to their interest are topics such as sleep, healthy aging, hormonal supplements, sexual health, and wellness tourism.