In recent years, the personal care industry has undergone a period of significant disruption and transformation. The COVID-19 pandemic played a pivotal role in this shift, as it triggered a noticeable change in consumer preferences towards skincare and personal care products. As social interactions declined and individuals embraced self-care practices, the demand for these products surged. This trend is anticipated to persist in the coming years, driving the global personal care market to an estimated value of USD 529.71 billion by 2028.
Trends Shaping the Next 5 Years in Personal Care Industry
During the Covid pandemic, global behavior patterns were disrupted across all markets, leading to a significant decrease in social interactions and a shift in consumer preferences from cosmetics to skincare and personal care products.
This irregularity has visibly corrected itself starting from the year 2022, and it is expected that we will reach stable growth rates of consumption between 3.8% and 5% for the upcoming years.
Simultaneously, other trends are emerging based on concepts such as ethics in the process (animal testing) and global sustainability in the production process of these products. However, products within this segment face the challenge of a higher cost associated with them, making them not yet suitable for general consumer consumption accustomed to more affordable products. Nevertheless, there are examples of brands identified as premium that have experienced an average growth rate of 40% between 2020 and 2021 despite the economic recession during the Covid period (Aesop being a clear example).
The unwritten rule in any market is to ensure a positive customer experience. However, let’s not forget that the definition of a positive experience can change over time. The growing interest in ethical or sustainable products suggests that, in the medium to long term, consumers will seek brands that produce more products aligning with their individual values. Therefore, in line with these consumer behaviors, clean beauty products are expected to be a major driver in the Beauty and Personal Care industry.
The personal care industry is undergoing a period of rapid change. The trends in personal care industry discussed above are expected to continue to shape the market in the coming years. Brands that are able to adapt to these trends and meet the changing needs of consumers will be well-positioned for success.