In today's dynamic beauty and personal care market, consumers are seeking ‘luxury for less’, a trend which prioritises high-quality products without the price tag.
This shift reflects a broader desire for value for money, where consumers seek premium products at an accessible price point without compromising on quality.
“Consumers are looking for more value in terms of hard claim substantiation for daily regimens from the products they buy,” says Eric Perlorca, Global Head of Marketing Beauty & Personal Care at Univar Solutions.
“They are gravitating towards hair and skincare regimens that are highly personalised to their unique needs,” adds Perlorca.
This has driven a resurgence of masstige, a blend of ‘mass’ and ‘prestige’ to describe products that are considered prestigious yet attainable. Masstige products offer a middle ground, delivering the appeal of luxury brands at more affordable prices.
Within the masstige market, there has been a surge in the popularity of ‘dupes’, or duplicates, which offer affordable alternatives to high-end products. By mimicking their pricier counterparts, dupes allow consumers to enjoy the aesthetic and functional benefits of luxury items at lower price points. This trend is especially prominent among younger consumers, fuelled by social media platforms like TikTok where users share their dupe discoveries.
These products attract a broad demographic, particularly in the EMEA region where populations are ageing and consumers are discerning and value conscious. In Europe, the population aged 60 and older is anticipated to reach 247 million by 2030 and surpass 300 million by 2050.1
Motivated by the concept of healthy aging, consumers aged 50 and older are increasingly prioritising health and wellness in their purchasing decisions. The older generation is a key market of the beauty industry: 78% of women aged 50-59 feel it is important to take care of their appearance, rising to 79% of women aged 60-69 and 82% of women over 70.2
Meanwhile, younger demographics such as Gen Z and Millennials are becoming more informed about the ingredients and formulations in the skin and haircare products they use.3 Their concerns about the safety of unfamiliar ingredients in products has created a preference for brands that are transparent about their ingredients and manufacturing processes. By combining functionality, quality and lower price, masstige products are well positioned to appeal to demographics across the board.
Economic and geopolitical pressures
There are several factors influencing the masstige movement. As the economy hovers in a steady state of unknowns, with the cost-of living crisis impacting consumers across the world, purse strings continue to be tightened. This has a direct impact on the beauty and personal care market, which can be considered discretionary spending.
“With disposable income being squeezed by economic and geopolitical pressures, consumers are more cautious about their spending,” says Perlorca.
“As a result, beauty and personal care brands are being challenged to navigate managing their working capital as efficiently as possible. Success requires a strategic approach to ingredient selection, ensuring maximum value and benefits to meet the expectations of cost-conscious consumers.”
Ingredient restrictions: EU regulations
Another pressure for manufacturers is the tightening of regulations for ingredients and components such as microplastics. In 2019, the ECHA submitted a restriction proposal for microplastic particles that are intentionally added to mixtures used by consumers or professionals.4
Although the regulation is currently paused (September 2024), the looming potential of stricter rules has led manufacturers to consider futureproofing their portfolios by exploring alternative ingredients that comply with potential new regulations.
“Manufacturers are caught between the immediate need to adapt and the uncertainty of future regulatory changes. These regulations have the potential to attack the chassis of many products currently on the market. If there is a way to tie in regulatory factors when formulating products, that becomes very relevant,” adds Perlorca.
Responding to a shifting landscape
One way that manufacturers can simplify formulas is by removing or reducing unnecessary ingredients. Developing a single chassis formula for multiple products can allow manufacturers to purchase core ingredients in higher quantities at a lower price point.
Keeping only the marketing ingredients at functional levels to provide the marketing claim is another way to leverage cost savings. Another option is to use new functional ingredients that give multiple benefits and are efficient at low dosages. By replacing multiple ingredients with one, it can deliver a lower cost in use.
Univar Solutions is a leading partner in the beauty and personal care industry with a strong focus on skin and haircare. Dedicated to helping brands navigate the complexities of product development, the company offers tailored support to meet each brand's unique needs.
The company works closely with customers to identify potential hurdles in formulation, be it technical challenges, regulatory compliance, or connecting with potential brand partners.
“We are dedicated to meeting customers where they are and on their terms. Our different divisions work with each customer demographic, from multinational brands and global accounts to local domestic contract manufacturers and emerging indie brands,” says Perlorca.
“We approach each customer with a problem-solving mindset, acting as a trusted advisor. Whether it's helping independent brands identify white space opportunities or guiding contract manufacturers through formulation challenges, we tailor our solutions to meet their specific needs.”
“For large multinational brands, we focus on tactical relationships, optimising supply chains and minimising difficulties to deliver maximum value. Each customer receives a unique approach based on their goals and challenges,” adds Perlorca.
One of Univar Solutions’ hero ingredients is the DOWSIL™ EL-TIPS Silicone Elastomer Blend. This is a sensory enhancer in a biodegradable carrier that allows brands to offer a unique sensory experience while meeting the demand for formulations with a high natural content. It provides a rich smooth after-feel while masking skin imperfections.
Another example is CocoaDesign™ L from Cargill Beauty. This COSMOS-approved liquid is derived from sustainably sourced cocoa butter, supported by the Cargill Cocoa Promise. CocoaDesign L offers a silky-smooth texture with excellent spreadability, making it ideal for a wide range of applications.
By streamlining product development and optimising costs, manufacturers can leverage the 'luxury for less' appeal and stay one step ahead of the beauty and personal care market.
References
1. Ageing. World Health Organization.
2. Age diversity in beauty: Why the 50+ customer is still busy living. 2CV.
3. Shim, J.; Woo, J.; Yeo, H.; et al. (2024). The Clean Beauty Trend Among Millennial and Generation Z Consumers: Assessing the Safety, Ethicality, and Sustainability Attributes of Cosmetic Products. Sage Open, 14(2).
4. ECHA proposes to restrict intentionally added microplastics. European Chemicals Agency (ECHA)