What does the beauty industry look like in 2017? Key insights from Euromonitor

Keep track of the different values of different generation groups of consumers in order to succeed, says the market research provider.

In its recently released Beauty Survey 2017, Euromonitor International reported on the top 10 reported hair health concerns and skin health concerns, along with revealing other crucial beauty industry insight for this year.

Ildiko Szalai, Senior Analyst at Euromonitor, said: “The beauty and personal care industry is rapidly evolving due to continuous innovation and new product developments. Consumer preferences are changing on multiple levels and challenging companies to keep up with current trends.

“The ageing global population, new demands in skin and hair care, shifts in spending power and increased consumer awareness of product formulation and ingredients are reflected in evolving beauty routines and attitudes of global consumers.”

Important generational segmentation

The importance of generational segmentation in skin care was one of the top findings highlighted by the market research provider in its report.

“Millennials and Generation X are the most frequent users of all skin care products, with the exception of hand care, acne treatments and anti-agers,” the firm notes.

“Differences in product usage between Generation X and Baby Boomers tend to be small, showing that once a skincare routine is established, it mostly remains constant.

“Usage of sunscreen products witness the most significant drop in usage by Baby Boomers, and face masks show the lowest adoption.

“It may be worth considering more tailored offerings in [skin care] categories to ensure higher consistency in usage over time.”

Purchasing: do retail channels need segmentation too?

In addition to the generational differences in usage routines or eco and ethical preferences, purchase influencers also show different impacts by age group, Euromonitor says.

“Older consumers are most likely to rely on past personal experience when deciding what to buy and less likely to turn to new digital channels.

“The power of discounts, both in-store and online, holds sway over shoppers of all ages, as does the impact of a recommendation from friends or family.”