According to Mintel’s new report , beauty consumers place more significance on value, driving the importance of quality and proven ingredients; consumers also prioritise wellness and accelerate the power of the mind-body connection; in parallel AI transforms the industry through efficiency, innovation and inclusivity.
Consumers are prioritising wellness to feel better in body and mind, said Mintel. And the next chapter of the market will be “mind-body beauty”, where mental well-being and physical appearance are interconnected. Practices like psychodermatology (exploring the relationship between psychological well-being and skin health) and neurocosmetics (which focuses on the mind-skin connection), for instance, will gain traction with consumers around the world.
“The mind-body connection is critical in elevating beauty’s role in overall wellbeing,” said Sarah Jindal, Senior Director, Beauty, Personal Care and Household Research, Americas. “Brands will look to offer a comprehensive approach to beauty, improving external appearances and enhancing mental and emotional well-being through technology integration, partnerships, inclusivity and personalisation. Advanced data analytics, DNA testing and personalised algorithms will enable brands to innovate customised beauty products and regimens tailored to individual mental and physical needs.”
According to Mintel, artificial intelligence will permeate the beauty industry in the form of personalised recommendations, virtual try-on experiences and data-driven insights. AI will transform the beauty industry by making it more personalised, efficient and effective, but transparency and good governance will be critical to growth.
“By analysing data, learning patterns and generating insights, AI is addressing ethical concerns and speeding up new product development. Brands should leverage information, like customer feedback on social media, to identify gaps and create innovative products tailored to specific needs. Going forward, expect to see AI enabling highly tailored beauty experiences based on individual preferences, genetics, environments and lifestyles as well as assisting with precise skin analysis, personalised product recommendations and real-time wellness monitoring,” added Jindal.
The beauty industry will experience a paradigm shift as consumers prioritise efficacy and functionality over extravagant packaging and flashy marketing campaigns.
“Today’s consumers are looking for transparency; they are more inclined to seek justification for premium pricing based on tangible results rather than superficial factors. Research, clinical studies or certifications to substantiate their claims of effectiveness will gain credibility and trust. We are seeing a new wave of ‘new-age minimalism’ and ‘coded luxury’ as consumer focus shifts away from amassing an extensive collection of products to curating a carefully selected range of high-quality essentials. Expect to see companies invest in advanced formulations, cutting-edge ingredients and technologies for targeted solutions,” concluded Jindal.