2021 BEAUTY INDUSTRY HIGHLIGHTS
Like any good social highlight reel, we love looking at the previous year in review. Keeping a pulse on the industry allows us at Buzz to drive the future of our client’s beauty businesses. We utilize documents, reports, surveys, and articles to capture insights, data, and trends and apply them to clients’ strategies and plans.
While we spend all year collecting key information on the beauty industry, it’s the summary and review that is always the most fun. Here is a glimpse of some of the data we rounded up about 2021!
Beauty Industry Size and Growth
· Beauty sales grew to $518 billion worldwide. Up 13% from 2020 ($458 billion), but still lower than 2019 by 4%.
· Multicultural products are growing the fastest, outpacing conventional products and brands by double.
· Skincare is now the largest segment and continues to grow.
Source: Business of Fashion
2021 Biggest Trends
· Lip care, hand cream, and face tools were the most searched terms
· Vitamin C was the most searched product
· Acid products had the highest change from the prior year with a 53% increase in search
· Glow was the marketing word of the year. Consumers purchased products with the word glow 3.2x more than other products.
E-Commerce and Digital Marketing
· 22% of beauty sales happened online, up from 10% of sales online in 2019.
· Beauty subscription services made a sharp comeback in 2020 (increasing subscribers by 120%) and in 2021 saw an average order value increase of 20%.
· Influencer marketing spend grew 34% in 2021 to $13.8 billion (est.).
· Estee Lauder reported spending 75% of its entire marketing budget on influencers and digital marketing.
· Micro-influencers (those with less than 1K followers) had the highest conversion rate at 20%.
· 67% of beauty shoppers look to social media influencers when making buying decisions
Source: Harvard Business Review
Celebrity Brand Launches
· 17 new celebrity brands
· Jennifer Lopez, Harry Styles, Ellen, Ariana Grande, and Machine Gun Kelly are just a few that launched in 2021.
While there were a lot of acquisitions and equity changes, here are a few of the highlights:
· L’Oreal acquires Youth to the People
· P&G acquires Ouai
· Galderma acquires Alastin Skincare
· Advent International acquires BareMinerals, Buxom Cosmetics and Laura Mercier
· Blackstone acquires the majority of Supergoop!
· Waldencast acquires Obagi and Milk Makeup
· Eurazeo acquires Beekman 1802
· L’Occitane acquires majority stake in Sol de Janeiro
· TricoBraun acquires SGB Packaging Group and Cormack Packaging
· LG acquires Bonica (Vegan Hair Dye Manufacturer) and owner of Arctic Fox, an Amazon bestseller
· Verescence acquires majority stake in Pacificglas – a Korean glass packaging company and long-term partner of Amorepacific
Looking for ways to implement 2021 data into a 2022 strategy plan? Find us on LinkedIn at Buzz Beauté or contact us here to see how we can incorporate data and trends to complete your marketing and sales strategy.