The US beauty market is more vibrant than ever, driven by diverse concerns and preferences in skincare, makeup, and other beauty categories, alongside concerns of rapidly evolving consumer behaviors. NielsenIQ’s 2024 Mid-Year Update highlights a promising 5.5% rise in sales within the first half of the year, with expectations of accelerated growth. With 41% of beauty and personal care sales now taking place online, it’s clear that having a robust digital strategy is no longer optional—it’s a must for brands aiming to thrive in today’s marketplace.
However, these trends are not confined to the US. Similar patterns are emerging globally, as consumers across Europe, Asia, and Latin America are also seeking personalized experiences across all beauty categories. To meet the growing demand worldwide, brands are increasingly turning to the full spectrum of AI technologies—such as computer vision facial and skin diagnostics, live AR virtual try on , sophisticated AI multiproduct recommendations, Generative AI—to provide hyperpersonalized solutions at scale.
While AI has long been a driving force in the beauty industry, Generative AI is pushing these innovations further. By leveraging Generative AI, brands can significantly accelerate personalized beauty experiences. Conversational AI enhances consumer interactions by providing real-time guidance and educational content, while also allowing shopping by inspiration. Generative AI seamlessly integrates multiple beauty elements, creating a true beauty fusion experience. Most importantly, the use of zero and first-party consumer data allows brands to gain a deep understanding of their audience. This data-driven insight empowers them to create highly relevant and uniquely tailored experiences that resonate with their customers, helping them stand out by offering solutions that truly meet the specific needs and desires of their audience—far beyond generic personalization.
This growing shift towards hyperpersonalized beauty experiences reflects a broader trend in the beauty industry. According to NielsenIQ’s 2024 State of the Beauty Industry report, digital transformation is driving the demand for personalization at scale. By delivering tailored experiences that resonate with consumers globally, AI is redefining what beauty can be in this new, data-driven era.
The Role of AI and Data: Driving Personalization at Scale in Beauty
What role does AI—spanning Generative AI, conversational AI, machine learning—play in delivering personalization at scale? Generative AI represents the next evolution in providing real-time, tailored beauty experiences that connect deeply with consumers. It goes beyond basic personalization, crossing boundaries by understanding context in new ways and allowing consumers to interact and express themselves differently. Whether through conversational interactions, educational components, or seamless, personalized shopping experiences, Generative AI expands the spectrum of AI’s potential, enabling brands to offer richer, more dynamic beauty journeys. However, to fully unlock this potential, AI must be fueled by data —especially zero and first-party data—to create truly transformative and differentiated experiences. At Revieve, our AI-powered Beauty Advisors for various beauty categories—such as skincare, makeup, haircare, and suncare—integrate a variety of AI technologies, including Generative AI powered by BeautyML, computer vision diagnostics, live AR, AI catalog enrichment and management, and AI recommendations to create personalized beauty journeys tailored to every audience. This full spectrum of AI allows Revieve to deliver global solutions that adapt to regional beauty preferences and evolving market trends.
Even more powerful, Revieve solutions enable brands to collect millions of unique data points capturing consumer preferences, behaviors, and interactions in real time. By leveraging this data, brands can drive broader personalization across their entire ecosystem on all channels, while making more sophisticated and timely business decisions—whether it’s optimizing assortment positioning, crafting targeted marketing communications, or even developing new formulations that are highly relevant to their audience.
What Consumer Data and AI Reveal About Global Beauty Trends
Data is the driving force behind AI. Without it, AI would lack the insights needed to create meaningful, personalized experiences. With millions of unique data points, we can tap into a wealth of insight across the US and other world territories where consumer preferences vary significantly across age groups, regions, and lifestyles. According to Revieve’s Global Skincare Landscape 2024 Report, some of the most compelling trends include:
Tapping into these insights into localized consumer preference will help beauty brands create meaningful connections that resonate with diverse global audiences.
Unlocking Success: Turning Data into Action Globally
By transforming data insights into actionable strategies, beauty brands can refine their approach across merchandising, marketing, inventory management, and product development to better align with the ever evolving needs of their customers.
Here's how to fully leverage the power of data:
1. Merchandising: Stocking to Meet Demand
Successful merchandising starts with understanding consumer needs. Younger shoppers (57.77% under 34) gravitate towards products targeting acne and skin-brightening, so stocking items with salicylic acid and vitamin C is essential. Meanwhile, older consumers seek anti-aging products like retinoids, peptides, and antioxidants for long-term skin health. In Asia, hydration and brightening products are in high demand, while European consumers prioritize clean, eco-friendly formulations and natural makeup products. By leveraging data collected by Revieve’s AI-powered solutions, brands can precisely respond to trends and adjust their merchandising strategies, minimizing costly mistakes and stocking the right products at the right time for the right audience.
2. Marketing: Crafting Personalized Campaigns
By leveraging solutions powered by the full spectrum of AI, including Generative AI, brands can build personalized marketing campaigns tailored to different demographics. With data-driven insights, brands gain a deeper understanding of their audience, enabling precise audience segmentation and ability to craft targeted messaging and positioning that resonates with specific groups. To engage younger audiences, for example, brands can promote acne treatments and brightening solutions through social media influencers on platforms like TikTok and Instagram. For older consumers, campaigns can emphasize efficacy with before-and-after results, real-life testimonials, and clinical proof of anti-aging products.
3. Inventory Management: Stocking for the Right Audience
AI-driven insights enable brands to fine-tune inventory management by understanding the preferences of specific audience segments and geographic regions. Geographic differences play a crucial role—brands can leverage AI to forecast demand for products suited to various climates or cultural preferences, such as hydrating skincare in tropical regions or eco-friendly makeup in sustainability-conscious markets like Europe. By anticipating these variations, brands can optimize their supply chains to ensure they are stocking the right products for the right audience in the right locations.
4. Product Development: Innovating for Tomorrow to Secure Your Future
AI-driven insights empower brands to identify emerging trends and develop innovative products that cater to the unique traits and characteristics of their consumer audiences. For example, AI insights may reveal a growing demand for specific ingredients like hyaluronic acid in hydration products or plant-based formulas in eco-conscious markets. In makeup, AI can identify preferences for new color palettes—what is considered a natural look in one region may differ in another, such as bold tones in some markets versus softer, neutral shades in others. This data enables brands to not only create products that resonate with specific segments but also to adjust formulations based on regional skincare concerns, climate, or cultural preferences, driving more targeted product development that aligns with customer needs.
Why Data and AI Are the Ultimate Beauty Power and Inseparable Force
AI, especially Gen AI, and data are inseparable. To truly stand out and deliver personalized experiences to your audience, it’s essential to go beyond general Generative AI solutions that rely on publicly available data. A unique dataset is the key to differentiation and competitiveness in today’s market. Without this proprietary data, it’s nearly impossible to offer experiences that are distinct and tailored to specific consumer needs. Brands that harness their own rich, exclusive datasets will create personalized, meaningful experiences that resonate deeply with their audiences and keep them ahead of the competition. At Revieve, we empower brands to unlock the power to be unique.
As the saying goes, "Knowledge is Power"—and in today’s beauty industry, Data Is Knowledge, and therefore, Data Is Your Power.
