Color Make-Up Market Insights
Insights into the North American Color Cosmetics Market include a wave of growth toward natural, organic, and eco-friendly products, especially those from authentic and inclusive brands that showcase each person’s unique beauty. Skincare-adjacent products are trending – and color cosmetics companies that can combine color benefits with health benefits are sure to see success in the coming years. Niche brands – and those that focus on high-target demographics and offer unique, eco-conscious and sustainable, inclusive products, will fare best.
Natural/Organic/Eco-Friendly Ingredients & Products Are the Future
- The clean beauty movement is about more than just the sustainability of the manufacturer’s processes; it’s also about the natural, organic, and eco-friendly ingredients and additives in the products – and where and how those are sourced. Increasing consumer awareness about eco-friendly product sourcing and the benefits gained from those ingredients (to the skin and complexion, and to the Earth) are partly responsible for the growth in this sector.
- Skincare, haircare, and make-up that include labels reading, “vegan, natural, organic, botanical, and free from” are becoming more and more popular among consumers, with the North American Organic Personal Care Market expected to see a CAGR of 8.4% between 2019 and 2024. The clean beauty movement and push for organic /eco-friendly ingredients, products, and packaging is driven by Millennials, since a full quarter of this huge demographic identifies as vegan or vegetarian.
- Part of the drive for eco-friendly and more-nature-based products includes a growing consumer “reluctance toward usage of synthetic colors,” and due to stricter regulations “on synthetic colors and hazardous health issues” that have “occurred due to usage of synthetic colors.” This increasing consumer demand for “natural colorants” in beauty products (and makeup specifically) is contributing to a variety of changes in the industry, such as the growth of algal pigments – and the related global market. The algal pigment with the highest global market share often used as an additive in colored cosmetics is beta carotene.
- Marine-based ingredients and additives, like the algae-based products just mentioned, currently “account for just a fraction of available personal care and beauty ingredients on the market,” however, industry experts state that they expect to see these ingredients in a huge selection of products in the coming years. Marine-based ingredients include those derived from “fish sources, plant sources, algae, or ocean water itself.”
- Notably, experts at Coresight Research state that “beauty with a conscience is driving innovation across all categories,” which feeds into the next big insight in this market.
Category Has White Space & Niche Innovations Are Escalating
- Although experts report slowdowns in the overall cosmetics markets in the US and North America as a whole, niche products – or those from smaller manufacturers are gaining traction, and are expected to continue to do so in the coming years. Notably, VogueBusiness purports that “much of the dynamism in the cosmetics segment is concentrated among independent brands with faster supply chains and a greater resonance with younger consumers.”
- Experts note that consumers are getting a bit jaded with traditional beauty brands which “are not changing their assortments quickly enough,” and that “niche beauty brands can be more nimble and adjust to trends faster.”
- The drive for clean beauty / eco-friendly beauty products and makeup is another reason “consumers are privileging indie labels.” Independent beauty product labels, like Elf and Winky Lux – known for color-rich consumables – are driving the prestige beauty segment revenues up, as much as “50 percent of revenue and 55 percent of overall growth” in the category in 2017.
- Additionally, Millennial consumers have a passion for indie labels and niche brands “because they better represent an increasingly diverse US market,” and this, too is driving growth. The success of many independent players, like ColourPop and Kylie Cosmetics as examples, has inspired larger brands to become more innovative, and to start their own incubation initiatives.
Skincare-Adjacent Segment Are Affecting Makeup Segments
- Research from Clique showed that 37% of women in the US “are wearing less makeup,” while a full 63% “of women see skincare as an investment in their wellness.”
- Notably, more and more women are adopting the mindset that taking care of their skin – and therefore needing to wear less makeup – will have “far more impact on [their] well-being than an eyeshadow ever could.” Because of this shifting mindset and the drive toward skincare products over makeup, manufacturers and retailers in the color cosmetics segment are liable to see a dip in growth over the coming years.
- One niche brand Versed, created by beauty giant Clique, “was created specifically for the self-care movement to address the growing mindset that makeup feels temporary and feels like something you put on for others, [while] skincare is an investment in yourself and an intimate ritual.” Thus, color cosmetics brands that include ingredients that are good for skin or that help combine skincare with makeup will find success in the coming years.
- With the Baby Boomer population moving into their advanced years, they’ve become more vocal about being represented by the makeup and skincare markets; colored cosmetics that help users “overcome ageing effects by masking dark circles, age spots, and large pores,” and offer ingredients good for aging skin will see success with this oft-ignored demographic.
Focus Is On Authentic, Unique, and Inclusive Beauty
- The beauty boom is coming to a slow end, and makeup manufacturers and retailers are feeling the downturn. With many of today’s consumers focusing on “wellness and a proactive skincare regimen that prioritizes a more natural look,” makers of color cosmetics will need to find ways to adapt to this changing tide.
- This focus-on-the-natural is also fueled by a consumer shift in the need to feel unique and to display “the natural beauty in each person, not some unrealistic, unachievable ideal.” This has led to health and beauty brands needing to have “a more personal, inclusive, and authentic image.”
- Since the 2017 adoption of the term “inclusive beauty,” this trend is now part of the landscape among beauty and makeup companies. This includes catering to not just women of all ages, but also to men and gender-diverse folks, as well as older and younger demographics that were not typically of focus in the past. Companies manufacturing/selling makeup for men, “boy beauty” products, or gender-neutral makeups are seeing profit increases; these include startups like Context, as well as long-established brands like Calvin Klein and Clinique.
- Additionally, inclusivity includes people of all skin tones, and this is driving cosmetics companies (and especially those creating color-based products) to think more deeply about “how to target specific demographic categories” with their marketing efforts, of course, with their product lines and color offerings.
- Examples of rising brands “led by founders from diverse backgrounds who inclusion attempts feel more authentic to consumers than larger brands” are Uoma Beauty and Base Butter. Successful brands like this understand that “it’s not just about adjusting one product range to ensure that there are more shades,” and that authenticity and inclusivity “needs to go beyond a foundation change or brown arm swatch photos on social media.”
- One notable brand on the forefront of several of these trends is Melanie Mills’ Gleam Face & Body Radiance; this “multi-cultural skin product” comes highly recommended by those in the entertainment industry “because it does not easily transfer, but also looks natural.” The product is not only “vegan, cruelty-free, [and] gluten-free,” but it “uses six universal shades that melt into any skin tone,” making it perfect for a wide set of demographic audience segments.
These insights were identified through a detailed analysis of the North American Color Cosmetics Market, as well as market segments and crossover markets related to (and infringing upon) that particular vertical; these included segments/markets like personal care, haircare, skin and nail care, and organic beauty, among others, though care was taken to ensure the findings directly related to color cosmetics. Additionally, although the focus was on the North American market, since the US holds the world’s largest share of this market – and the greatest share in that region, much of the information was focused on that particular region. Notable findings were identified, then synthesized and supported in the current insights.