The pandemic has had a profound impact on the beauty industry. The shift in work and extracurricular environments have changed the frequency of usage, with daily dropping by ten percentage points from 2020 to 2022.
Yet, makeup usage is seeing a comeback in 2022, with 11% saying they are wearing more compared to last year, up 7 points from 2021, when just 4% said they were wearing more compared to pre-pandemic.
Over the past few years, there has been an increase in the importance of wellness, which has impacted the value placed on skin care. At the height of the pandemic, many consumers swapped cosmetics for products that promote the health of their skin, hair, and nails, and this behavior has continued.
Inflation has affected most categories, and beauty is no exception. The gap between brand and price preferences of beauty products is at its narrowest in the past year, with 44% saying price is more important, up four percentage points since last July.
Cosmetics are most valued among younger, and multicultural consumers.
While colorism has become an acknowledged issue in the cosmetics industry, there is still a long way to go to adjust the products to fit the consumer who values make-up the most.
Hispanic and Asian communities place the most value on cosmetics, but two out of five Asian consumers cannot find products to match their skin tone. In fact, over a third of consumers of color cannot find cosmetics for their skin tone. Meanwhile, 80% of Caucasian consumers can, yet they place the least amount of importance compared to any other racial/ethnic group.
Middle-aged consumers (Gen X and Boomer generations) are most likely to make their purchases based on a brand’s social stance on issues. Still, Gen Z is the one to watch – placing higher importance on a brand’s social perspective than any other generation.
While a brand’s social stance may not impact their purchases as much, Gen Z may shift away from that trend as they begin having more disposable income and less interest in the top trending products.
Understanding which brands a consumer prefers can provide deep insights into who they are beyond basic demographics. Brand preference can shed light on everything from political leanings to buying habits, attitudes, and lifestyle choices. This level of insight into an audience can impact overall business decisions and strategy.