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2021 Cosmetic Industry Insights


Beyond doubts, 2020 was a redefining year for many sectors, the cosmetic industry not excluded. As consumer values and expectations shifted, beauty companies and startups alike have been forced to adapt. Premium beauty product outlets were closed during the lockdown. About 30% of the beauty market was shut down, and some brands never reopened. The aftermath of the lockdown is visible in how high the search for DIY beauty care products has risen, the increase in online purchases, and the preference for natural products.


For many countries, lockdown ended in 2020 but for some, a part of 2021 was spent indoors. Many businesses struggled through it and some had to close down permanently due to a decline in sales. How has this affected the sales and consumption of beauty products worldwide? What about consumers' preferences? Has it remained the same or evolved?


Let's find out a bit more. . .


Offline versus online: As the lockdown were eased, offline shopping picked up really fast and topped the chart for the year, leading with a whopping 81% to be buyer's preferred channel of purchase. This good news is short-lived though, as offline purchases are declining against online purchases when compared with previous years. This trend is expected to continue in 2022, with more consumers tilting towards the online side of the scale.


The quest for more: a recent survey revealed that price and location didn't lose their rank as the top factors influencing consumer behaviour but in 2021 there were more to it than those two. The survey revealed consumers are influenced by features such as special sales, unique products, and rewards programs.


Scalp and eye care: all thanks to the pandemic and the need to wear a mask, hair, scalp, and eye care have been identified as major beauty trends in 2021. With more people revealing just their hair and the upper half of their faces, hair products and eye cream had more sales than lip products in 2021. Unfortunately, with new variants of COVID-19 being discovered every now and then, the need to mask up isn't going out of fashion anytime soon. Leading brands are currently focusing on promoting and launching new products such as LED hair masks, scalp scrubs, serums, and essential oil treatments to meet these needs in 2022.


Content not cost: In 2021, more and more consumers were seen choosing effectiveness and ingredients (source and type) over price. This trend led to the increase in the use of the word " organic", "natural', etc on many labels and marketing campaigns. Well, it's looking like they aren't just mere seasonal trends as reports show that the global value for natural cosmetics is expected to reach $54.5 billion by 2027.


In all honest, 2021 was a great year for the industry with more of the ups, than the downs. The beauty industry did not only regain its balance in 2021, it carved out a path for itself to become a force in the marketplace. With key players noting the trends in consumer preferences and designing their products and services accordingly, there's no limit to how much will be achieved in the cosmetic industry in 2022. New brands are rising with amazing products and technology is predicted to play key roles in providing support for the industry. We have our hopes up and our fingers crossed, we are thrilled about what's coming in 2022 and we will be here standing tall as your favourite beauty brand of all time, providing valuable products that you love.

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