According to BoF, the global beauty industry, estimated at $441 billion, should continue to grow at an average annual rate of 5% until 2030. But the drivers of this growth are changing. “The sector is still dynamic, but it has entered a new era in which a real puzzle needs to be solved to maintain performance.”

An increasingly demanding consumer

Expectations have evolved. Consumer profiles, once defined by demographic criteria, are fragmenting. “The old segmentations by age or gender no longer suffice. We now need to think in terms of attitudes and local contexts,” observes BoF. “Hyper-localization is becoming a priority in order to capture customers’ new trade-offs.”

The other major transformation concerns the notion of value. In the face of inflation, buyers are looking more closely at the actual performance of care products. “Today, 83% of consumers believe that hair care products are affordable, but this figure drops to 67% for fragrances,” illustrates the study. This means that brands now have to prove that their prices are justified.

Distribution needs to reinvent itself

Physical retail outlets continue to play a key role in product discovery, but marketplaces are gaining ground, thanks to fast delivery …