Global consultancy and research firm Kline recently published their “Beauty’s Brightest Trends: A Look into 2022 and Beyond” report. BeautyMatter selected the standout developments set to influence the industry’s future, backed up by the latest investments, acquisitions, and brand activations.
Industry-Wide Sustainability Shifts
With a more value-driven consumer on the rise, large conglomerates are making tangible and wide-scale commitments to increase their environmental efforts and consumer transparency. Johnson & Johnson pledged to have 100% renewable electricity sources by 2025, Estée Lauder Companies vows to have a minimum of 90% sustainably sourced palm-based ingredients in its products portfolio, and Procter & Gamble is working towards 100% recyclable packaging across the board by 2030.
Waterless and plastic-free product formats such as shampoo bars from the likes of Aveda and Davines, as well as recyclable toothpaste tubes by Colgate-Palmolive, are furthering more eco-friendly beauty product categories. Indie endeavors like zero-waste personal care brand Uni, which recently obtained $4 million in seed funding, are creating additional newfound excitement for the category.
Other notable developments in the investment space include sustainable B2B marketplace Novi Connect, which has raised over $50 million to date, clean tattoo care brand Mad Rabbit’s $4 million in fresh funding, and refillable deodorant start-up Wild’s securement of a further £5 million, offering a wider range and availability of consumer options. “Where ‘zero waste’ was once only the preserve of the most committed eco-warrior, it now represents an accessible choice that all shoppers can embrace on their own level,” comments Richard Reed at JamJar Investments, an existing investor in Wild.
Booming Professional Category
Kline predicts a 25% uptick in aesthetic treatments like Botox and fillers in the coming year, with body treatments like CoolSculpting presenting another substantial growth category. These are more likely to occur in med spas nowadays, due to their substantial 13.3% CAGR expected over the next five years. Establishments such as Vitality Institute's The Brown Skin Agenda will broaden the expertise in dermatology and surgery treatments available for BIPOC customers, while luxury spaces such as Harrods’ Hair & Beauty Salon, a 16,985-sq.-ft. beauty and wellness spa offering everything from LED treatments to Japanese spa-inspired washing rooms, will up the ante for those seeking cosmetic refuge in the busy city. Recent investments such as General Atlantic’s $140 million funding in Restore Hyper Wellness, which provides cryotherapy and infrared saunas amongst its many other innovations, also bodes well for high-tech spa services.
It’s not just the services customers are booking that are increasing revenue, but also the products they purchase while there. The report states that 75% of physicians saw a revenue increase for skin products, and over 80% of physicians noticed an uptick in patient spend per visit.
Leaps in Luxury Beauty & Hair Category
With US prestige beauty alone generating $22 billion over the past year, it’s clear that high-end brands are on the up. Luxury skincare brand Common Heir raised $2.5 million in funding (surpassing its original goal by $1 million), while L’Oréal Group and Estée Lauder witnessed the most substantial growth in their luxury categories. New contender luxury clean color cosmetics company La Bouche Rouge obtained a hefty €10 million in funding, a testament to the industry’s faith in the sustainable luxury makeup category.
The hair category will also see an uptick, with Shiseido’s Asia-Pacific Professional Hair subsidiary, which reported sales of €200 million in 2020, being acquired by Henkel. With the proclaimed “skinification of hair” on the rise, consumers will be investing more into results-oriented and dermatology ingredients-driven products. Textured hair, a previously underserved category, will also continue to grow. Notable brands include Mielle Organics, TPH by Taraji, and The Doux.
Retail: Brick & Mortar (& More) Rebounds, Omnichannel Remains King
With restrictions and mandates lifted, the return to our new normal will see shoppers frequent retail spaces with gusto—if said spaces can trump the convenience factor of e-commerce, and as of late, grocery shopping, with experience. The likes of Selfridges and Conscious Beauty Collective are matching their enthusiasm with in-store events and online activations like podcasts, proving the importance of omnichannel approaches.
In a recent BeautyMatter op-ed, Managing Partner at investment advisory platform Patina, Ransley Carpio, forecast social selling as a major pillar of growth in the years to come, with the likes of WeChat and T-Mall driving a sampling boom as experience-eager consumers look to engage more with the try-before-you buy format. E-tailers and retailers alike should be sure to stock their (sustainability and high-end filled) shelves in anticipation.
