The future of the beauty market

The new coronavirus has left the world market upside down. A lot of uncertainty started to take over small entrepreneurs and even large companies. But after the initial scare, it seems that the fall will not be so ugly – at least in the world of beauty.
According to the Brazilian Association of The Personal Hygiene, Perfumery and Cosmetics Industry (ABIHPEC), the prospect is that the market will grow 1.1% in 2020 (compared to 2019). Little compared to the initial projection made before the pandemic: an increase of 5.1%. But relevant to the moment. Brazil's GDP, for example, is expected to shrink by 5.7%, according to the Central Bank's latest Focus bulletin.
"Given the difficulties faced, the mere fact that we are in the blue is positive," says João Carlos Basilio, executive president of ABIHPEC. Since May, the sector has been resuming. Part of this movement can be credited to the "covid-19 basket", which includes gel alcohol and liquid soap, products of very first need, but the passion of Brazilians for beauty – Brazil is the 4th largest market in the world – must also be taken into account.
Even in love with beauty, consumers are now driven by new consumption habits, which should continue even after the pandemic is over – which no one knows when it will happen. It is true, however, that the world will not be the same. "The pandemic has brought a reflection for all, making consumers more aware. The purpose and actions of the brands, the guarantee of origin in production and themes related to sustainability become even more relevant", says Sabrina Zanker, marketing director of L'Oréal Luxe, owner of the brands Lancôme, Giorgio Armani, Yves Saint Laurent Beauté and Urban Decay.
We learned to stay at home, which brought us a sense of cocconing, from the English cocoon, a nest that covers and protects from the dangers existing on the streets.
"Many consumers will be more attentive to what is essential for themselves and their families, and we are observing deeper habits of self-care at home and ritualization of beauty," says Fernanda Rol, natura's brand director.
- SKINCARE, THE HIT OF QUARANTINE
The insulation even has a great beauty hit, the skincare. More than preserving the life and health of the skin, the act of taking care of ourselves brings comfort and a sense of routine, important to maintain mental health in such challenging times. "People are at home, they have more time and they want to do their rituals and try products that help them get through this moment," Sabrina says.
This behavior impacts sales of skincare items. "The skin care category is experiencing enormous growth, with emphasis on antisinals, face cleansers and moisturizers," reinforces Maria Laura Santos Tarnow, managing director of Estée Lauder Companies, which brings together luxury brands such as Clinique, M· A· C, La Mer, Aveda and Jo Malone London.
ABIHPEC brings the trend in numbers: 92.8% increase in sales volume of face masks, 14.7% of anti-wrinkle/sign/age cosmetics and 8.3% of facial moisturizers, comparing the months of January to May 2020 with the same period in 2019.
- CLEAN BEAUTY IS HERE TO STAY
There is also an awareness with the origin of the products and their formulations. "The consumer is more concerned with the components and elements of the formulas. He wants to make sure that they are investing in products according to the precepts of clean beauty, which proposes an ethical and conscious production," says Andrea Orcioli, CEO of Sephora Brasil, a cosmetic retail chain of lvmh group, the world's largest luxury brand conglomerate.
A concept that had already been growing here, clean beauty, or clean beauty, was consolidated once and for all in the pandemic. "Brazilians were already aware of what they consume, who they buy, what is behind a brand – production chain, certification, raw materials – and this moment brought an even more cautious look to health," adds Patrícia Camargo, co-founder of CARE Natural Beauty, a Brazilian brand selected by Sephora's worldwide beauty startup acceleration program in 2019. The choice for beauty that is good for the skin and does not harm the planet caused Care to grow 155% compared to the first half of 2019 – and the bestseller was the skincare skindrops GLOW probiotic illuminating serum.
From the niche to the agenda of the large chemical industries of inputs: the path taken by clean beauty added performance and durability to ingredients from plants, important points for consumers even more concerned about safety in times of coronavirus. "We develop solutions and technologies that meet market demand, such as natural ingredients and a production that contributes to the preservation of the environment," confirms Vinicius Bim, innovation specialist in BASF's Personal Care business in Brazil.
It was no wonder that, when entering the beauty business in full pandemic through the e-commerce Amaro Collective, Amaro, a fashion company, bet on clean beauty with a portfolio of already consolidated brands, such as Biossance, Feito Brasil, Beauts, Almanati, Simple Organic and Quintal. "Beauty and wellness were already in the plans, but the pandemic accelerated the process," says Juliana Hassegawa, amaro's director of planning and merchandising. The idea is to offer new possibilities for consumers who are staying longer at home. "The project was so successful that it will be maintained even when the health scenario is normalized," says Juliana.
- SELF-CARE RITUAL
Ritual is the term that best defines the quarenteners' self-care experience, according to trending company WGSN, which partnered with Google, owner of the Trends tool (which shows the most popular search terms), to understand beauty perspectives during the pandemic. Ritual is in the skincare routine and also in the "spa at home" atmosphere, which transformed the bathroom into a space to relax and nourish body and spirit.
Aromas, essences and natural products become allies to face routines full of anxiety and uncertainty. "Facial mask with active soothing, relaxing baths with herbs, which call sleep. The concept of beauty from the inside out has never made so much sense," says Bruna Ortega, beauty expert at WGSN. "Consumers move through products that offer salon results and bring benefits to alleviate emotional states arising from the pandemic," said Lívia Sitta, consumer goods insights specialist at Google Brazil.
In the wave of bath for body and soul, doTerra, the leading company in essential oils in the world, has just launched its first line of products for the body, the Spa at Home, with ingredients and aromas 100% natural. Rituals with natural footprint are also made to take care of the hair. "The demand for high-efficacy but botanical products such as hair masks, oils and primers has grown. We understand that there is a tendency to seek hair health", reinforces the director of Estée Lauder.
Gadgets that optimize the home care routine – facial cleansing brushes, epilators, massagers – have gained importance as well.
The DYI or "do it yourself" represents an important change in the universe of Brazilians accustomed to good quality beauty services, regardless of social class. "Spending more time at home awakened in people independence and autonomy, attributes that were not so explored before. Self-care is independent by nature, it frees us", believes the CEO of Sephora Brazil.
But will these rituals continue on the agenda? "Confinement has fueled DIY behavior and this trend should not go away overnight," believes L'Oréal Luxe's director.
WGSN's Bruna Ortega agrees: "Some changes were already on the radar, they were only accelerated by the pandemic, such as home office, distance learning, home cooking."
- MAKEUP BACK
After two, three months in relative hibernation, the makeup rehearses a come back. Between April and May, Google Brazil recorded an increase in demand for items such as lipstick (+21%), base (+36%), concealer (+47%) and mascara (+49%). "People are not only working from home online, but they are also using the virtual world to connect with friends and family. And they want to appear well during online video calls," says Maria Laura Santos Tarnow, director of Estée Lauder. In addition, the need to wear protective masks against covid-19 makes consumers value the expression of the look. "The eye masks, eyes masks, eyebrows and concealers - are growing," says Estée Lauder executive.
The focus on the look can be translated into numbers: these products recorded growth of 36.7% from January to May this year compared to the same period of the previous year, according to ABIHPEC.
But what if the lipstick, hidden by the masks, would go into ostracism? The item, traditionally a sales thermometer of this brand - the so-called "lipstick index" – is also doing well in this crisis: in May 2020 it showed growth of 20% compared to the same month last year, also according to ABIHPEC. After all, in typical quarantine situations, such as lives, virtual happy hours and work meetings, who hasn't used a good red lipstick to give a look up?
- PERFUMES FOR THE END OF THE YEAR
In times of turbulence, people have a dichotomous behavior between searching for their favorite products, which bring the feeling of stability, and at the same time look for hot news, which help mitigate the feeling of lost time. L'Oréal Luxe observes this behavior in relation to perfumes. "The company is betting on the acceleration of bestsellers such as Lancôme's La Vie Est Belle fragrance, but with a great contribution from releases such as Yves Saint de Laurent's Libre," says Sabrina Zanker.
Perfume sales...