The beauty industry is reaching heights it has never achieved before this decade - and it is poised to keep growing well into the next one.
Case in point, the worldwide facial care industry has enjoyed nearly 5% growth in 2010, and is expected to achieve record growth levels of 22% from 2010-2015 to exceed $61 billion.
In spite of the recent recession, beauty treatments and associated services continued to grow in popularity.
Cosmetics for hair, skin care, and beauty products are steadily rising, and are projected to achieve a further 3.5 to 4.5% growth from 2015 to 2020.
Growth is expected to reach $500 billion by the year 2020, largely due to the increasing population in Asia Pacific and the BRICs, as well as the growing Hispanic population in the United States. These segments are driving demand for luxury cosmetics and are set to be the main drivers of growth from this point forward.
While the worldwide market for cosmetics and other related toiletries suffered from the effects of a global economic downturn prior to this decade, things are looking up in the coming years.
The Role of Emerging Markets
Changing lifestyles, as well as rising income and standards of living for consumers in developing markets such as Asia Pacific and Latin America are driving the beauty industry towards positive growth. This is most evident in China and Brazil, where the middle classes are growing at an exponential rate.
That's not including the aging population in the West, whose increased income has allowed them to afford the relative luxury of beauty treatments. Because of this, salon treatments for hair, laser hair removal, and even the more expensive plastic surgeries are more common now, both in Europe and the United States.
The real action is in the developing markets, though - particularly the BRIC (Brazil, Russia, India, and China). Apart from China and Brazil, further emerging markets (Argentina, Mexico, Indonesia, Thailand, and Turkey) accounted for an $8 billion-dollar growth in 2012. It should, therefore, come as no surprise that beauty industry giants are expanding heavily into the BRICs.
Trends
Beauty giants have acknowledged the importance of these growing markets by shifting their focus to diversifying their product lines - particularly for Latin America, where mass brands dominate the cosmetics and fragrance industries.
Another trend that has emerged this last decade is the increase in popularity of time-saving and long-lasting products such as quick-drying nail polish or 3-in-1 facial wash, shower gel, and shaving foam. It's no surprise considering today's consumer is busier than ever.
Furthermore, there is a huge increase in cosmetics sales over the internet. This is largely driven by the lower prices as well as the ease in learning about the products on websites. Social media has played a tremendously large role in this, and will continue to do so in the coming years.
Lastly, one of the most notable trends that have emerged in the past decade is the rise of permanent beauty treatments and products. More and more manufacturers emphasize their adherence to a better appreciation of value for consumers.
Conclusion
Given the fact that statistics have shown this significant increase in the beauty industry this past decade, what does the future hold based on the numbers?
First, the demand for cosmetics will continue growing, particularly driven by the BRICs markets. This will create new products, influence the development of new spending habits, and maybe create new beauty standards.
Manufacturers will also need to adapt their new products, particularly their marketing techniques, to fit the expectations of these new markets, which come from markedly different cultures as well as mores and folkways.
Haircare and skincare will retain the lion's share of the cosmetics market, and its growth potential is immense, given the demand for it in emerging markets.
Lastly, more and more products will be developed with advanced technologies, as well as the new demand that was created for sustainable, eco-friendly, and fair-trade products.