Inflation has been a national challenge for the last few years, causing the price of nearly everything to rise. You may be one of the many people restructuring your grocery and spending budgets, but others are leaving room for skincare products. The skincare industry has had a surge in sales over the past 12 months and these are a few reasons why.
1. Products Are More Widely Available
Beauty and skincare brands used to focus on partnering with brick-and-mortar stores. They could gain shelf space next to higher-end products and associate the two brands visually with consumers.
The effect made personal care only 11% of e-commerce sales in 2021, but that’s changing this year. Amazon is acquiring more high-end brands instead of mass-market products so consumers can find more options online.
China’s online marketplace Tmall is following Amazon’s lead. The platform previously didn’t sell many beauty brands, but over 3,000 merchants started online stores with Tmall in 2022. The result is increased sales of skincare and beauty products.
Consumers may also be experiencing a phenomenon known as the lipstick effect. People who struggle to afford necessities become more inclined to buy little luxuries like lipstick. The pick-me-up is comforting and much easier to access online now due to Amazon and Tmall’s change in beauty merchants.
2. Skincare Livestreaming Is More Popular
Companies may market their products on social media, but the rise of skincare livestream has opened doors for social selling opportunities. Brands participating in social selling may connect with a famous influencer who goes on to make a video about how much they love a specific product from that brand.
Instead of hoping customers tune into the Home Shopping Network, brands get guaranteed access to people following influencers. Recent research found that 74% of consumers in China bought products they saw on a livestream in 2022. It’s only becoming more popular because livestreams are free to access and available on any internet-connected device.
Once people can understand products, they’ll feel more comfortable buying them. They may even become more aware of skincare procedures through social selling, leading to the dermatology industry’s 1.2% annual growth and $7.7 billion value as of 2022.
3. Omnichannel Retail Is More Highly Prioritized
The skincare industry and other marketplace sectors used to rely on multichannel retailing. This meant a brand could advertise its products on different platforms, but each effort was separate. A beauty brand advertising on a billboard could appear with a different voice and style than in their TV or magazine advertisements.
Omnichannel marketing is driving the surge in skincare sales in 2023. It’s the idea that brands can market their products across channels with an integrated approach. A consumer that finds a beauty brand through an Instagram post should be able to recognize the company’s voice and design style through in-store labels and advertisements.
Cohesive marketing makes brands more recognizable and approachable by building trust through a single identity. The benefit of building trust is already evident in research that proves 86% of shoppers prefer trusted brands and 90% will pay more if a product comes from a brand they trust. Furthering that connection with omnichannel skincare marketing is one of the leading ways brands are improving their skincare sales.
4. Wellness Products Are Reaching New Markets
People spent the last few decades viewing skincare as splurge trips to the spa or costly visits to an esthetician. The standard services appealed to people from all walks of life, but the skincare industry now caters to specific lifestyles too.
Consumers can find products like probiotic skincare supplements that support their wellness from inside their digestive tract, not just with changes in diet or topical product applications. Those interested in improving their gut health may join the probiotic skincare community because it’s a double investment.
Ayurvedic ingredients are also rising in popularity. The Ayurveda practice centralizes around balancing an individual’s spirit, body and mind. Consumers may feel increased control over all aspects of their well-being by using the popular Ayurvedic products that will likely reach a market value of $21.12 billion by 2028.
Other skincare products are leaning into the latest tech advancements that are capturing the interests of consumers. LED face masks grant more control over fine lines and wrinkles at home, saving consumers money compared to professional skincare offices.
When all these things are widely available online and in-person, consumers have more affordable options to try as they manage their skincare routines. People within markets without custom beauty products can easily find their practices like Ayurveda and interests like tech tools at affordable prices.
Watch the Skincare Sales Surge
The skincare industry continues to rise, despite the lingering inflation and economic challenges facing global markets. The surge in skincare sales will likely continue. Changing marketing strategies, new product approaches and more accessible points of sale are revolutionizing the industry by staying adaptive to consumer preferences.
Writer Bio
Beth is the Managing Editor and content manager at Body+Mind. She shares knowledge on a variety of topics related to nutrition, healthy living, and anything food-related. In her spare time, Beth enjoys trying out new fitness trends and recipes.
