Technology and personalization are the trends driving the U.S. beauty market, according to a report released by Kline.
Brands that capitalized on the personalized approach in 2015 saw high double- to triple-digit growth, according to the report, and contributed to a 3.8 percent increase in sales of cosmetics and toiletries for 2015. The personalization trend starts with product — like custom blends from Skin Inc., Lancôme or Mix-o-logie, and runs through suggestions from beauty apps or targeted marketing messages through social media.
“Smaller brands have a distinct advantage as they are very nimble and can listen more closely and adapt to consumers’ demands quicker,” said Naira Aslanian, research project manager. “The fact that smaller brands, particularly in the makeup products class, grow the strongest confirms the power of social media leveling the playing field among large players with hefty advertising budgets, and small, niche brands that do not have the larger marketing budgets. It also demonstrates the power these companies have in terms of sales.”
The report, Kline’s Cosmetics & Toiletries USA, provides a view of the beauty and personal care market, spotlighting trends and development, with data on the performance of 25 product categories.
Social media consumption is influencing companies to introduce certain products, including bold lipsticks and Cover Girl’s Outlast Stay Luminous foundation, according to the report. Lipsticks and lip glosses are the fastest growing product category, gaining more than 8 percent in 2015, Kline said.
Large brands, like Neutrogena, Clinique or Estée Lauder, are using beauty social media celebrities to appear to Millennials, while smaller brands like Tarte, Too Faced, E.L.F. Cosmetics, Anastasia Beverly Hills and IT Cosmetics tend to use girl-next-door type social media stars. Big brands are reducing their marketing budgets and moving more toward digital campaigns, Kline said.
While lipsticks recorded significant growth during the year, expansion in men’s skin care grew even more, posting a 9.5 percent gain for 2015.