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Embrace the new face of beauty

Reinvent the beauty industry by leveraging the power of data and AI to create hyper-personalized experiences

What’s going on

The beauty industry is experiencing a dynamic shift worldwide. The market has seen the rapid launch of new products, services and technologies, fueled by digital adoption and innovative beauty trends. Consumers now demand hyper-personalized and science-backed products that can only be achieved by brands through data and AI. Over the next couple of years, emerging economies such as India, Brazil and South Asia will offer brands significant growth opportunities.

5 ways beauty is changing

Competitive emerging markets

Demand for products that cater to a diverse range of skin tones, hair types and cultural preferences is growing. Local brands in emerging markets such as China, India and Brazil are adept at meeting these preferences—intensifying competition and introducing new innovations to the global market. In the US, the premiumization of beauty continues to shape the industry landscape.

Rapidly shifting demographics

Shifting demographics present exciting opportunities for growth. Today, 56% of men report an increase in their skincare product purchases compared with five years ago. And consumers aged 45-54 in households with children are driving the growth of prestige skincare sales. The rapidly changing preferences of diverse consumer segments offer untapped opportunities.

Evidence-based claims

Consumers are increasingly drawn to scientifically-backed claims and evidence-based results. Cosmeceuticals, a new category of cosmetic products with bioactive ingredients that claim health benefits, is gaining momentum in the industry. Beauty brands are responding to the movement by shaping portfolios centered on science—not just aesthetics.

Beyond-human connection

A focus on hyper-personalization and community is exemplified by brands using social platforms such as TikTok, where many consumers seek inspiration for their beauty purchases. Brands also leverage augmented reality for virtual try-on experiences to enhance personalized interaction and increase confidence in product selection.

Sustainability-conscious consumers

People are increasingly willing to invest in sustainable beauty products that emphasize eco-friendly packaging, cruelty-free formulas and fairtrade practices. Their purchase intentions reflect a deep commitment to ethical consumption, prompting brands to increase transparency about their impact on the environment.

What you can do

Drive innovative product development with a broad array of ecosystem partners to invent new science-led products with AI and generative AI. Embrace new approaches to mergers and acquisitions to scale quickly and build competitive product portfolios.

25%

CAGR driven by devices, a “newer” beauty category within health and wellness.

Create unified brand experiences for consumers by bringing physical and digital together; developing the skills and infrastructure to deliver human-centered, purpose-led and hyper-relevant experiences.

79%

of beauty consumers walk away from a purchase because they are overwhelmed by noise.

Accelerate the use of AI, emerging technologies and new ways of working to reinvent your value chain. Generative AI-driven reinvention has the potential to achieve 3-5% improvements in operating margin over the next three to five years.

Read the report

40-60%

of activities in an organization could be automated or augmented using generative AI.

Our leaders

Oliver Wright

Senior Managing Director – Consumer Goods & Services, Global Lead

LinkedIn

Audrey Depraeter-Montacel

Managing Director, Global Beauty Lead, Consumer Goods & Services

LinkedIn

Karen Fang Grant

Managing Director – Industry Networks & Programs, Global Research Lead

LinkedIn