Key Trends: Skincare (UK & Global)

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Skincare Trends: UK

Recent trends in the UK skincare sector include an increase in adoption of all-natural and/or ingredients in skincare products, streamlining of product formulations to include higher concentrations of fewer ingredients, a focus on the skin's microbiome, a rise in e-commerce utilization for skincare, and an increase in purchases of premium or luxury skincare. Further details of each trend and how it impacts the industry are summarized below.

TREND 1: ORGANIC AND NATURAL INGREDIENTS PRODUCTS

  • There has been a rise in adoption rates of all-natural and/or organic ingredients (e.g., fruit extracts, aromatherapies, plant extracts) in skincare products.
  • The minimalist trend in cosmetics, shifting away from dramatic eye shadows and bold lipsticks, has driven a surge in organic skincare products that place greater emphasis on dewy and naturally glowing skin.
  • This is further driven by the overall 2019 trend of wellness-driven beauty, which is predicated upon balances between inner well-being and external beauty and an overall higher consumer awareness of what ingredients they are consuming and putting into their bodies.
  • Predictions for the UK skincare sector in 2019 include a rise in more holistic and natural products to support the wellness-driven trend.

TREND 2: STREAMLINING PRODUCT FORMULATIONS

  • In recent years, there has been a shift towards inclusion of fewer ingredients in skincare products but in higher concentrations of effective ingredients.
  • Leveraged from Korean skincare trends, "skip-care," refers to the process of using fewer but more powerful products for daily skincare regimes.
  • Through such a trend, more hybrid products have emerged (e.g., dual-purpose toner and moisturizers) with natural, proven effective ingredients such as green tea and vitamin E.
  • Predictions indicate that the UK skincare sector will move away from the previous 10-step skincare routine from the Asian beauty market and towards a more minimalist regime.

TREND 3: FOCUS ON SKIN MICROBIOME

  • The skin microbiome, which refers to the community of organisms that live on the skin (e.g., bacteria, viruses, fungi), has become a central focus in skincare product development recently.
  • The ecosystem of bacteria living on individuals' skin dictates how well products are absorbed and the overall health of skin.
  • Skincare products have shifted away from harshly stripping the bacteria away from skin and, instead, focus on balancing the pH of skin to promote healthier and more radiant skin.
  • The UK has led the rest of the world in increasing recognition of the skin's unique ecosystem in the development of skincare products.
  • In fact, 37% of products created in 2018 specifically to target the skin's microbiome were produced by the UK.

TREND 4: RISE OF E-COMMERCE DOMAIN

  • Within the retail segment of the UK skincare market, e-commerce retail is expected to experience the highest CAGR (6%) in the future.
  • Shopping websites have offered better deals, easier accessibility, and hassle-free returns policies that have incentivized purchase of skin care products primarily through e-commerce mediums.
  • Skincare brands have reacted to this trend by launching mobile apps, redesigning sites for user experience, and increasing digital marketing and online offers to customers.

TREND 5: PREMIUM OR LUXURY SKINCARE PRODUCTS

  • UK consumers are shifting to more self-indulgent behaviors, which has driven luxury skincare brands to comprise the majority (71%) of new skincare product launches in the UK in 2018.
  • This is a significant rise from 2008 stats, in which luxury brands comprised of a little more than half (54%) of the UK skincare sector.
  • Mass market/budget brands in the UK skin care sector, on the other hand, have declined to 10% in 2018.

RESEARCH STRATEGY

The research team began searches among market and industry reports (e.g., Forbes, Bloomberg, Marketwatch, Business Insider) to identify relevant and recent trends within the skincare industry based on expert lists. While an expertly-compiled list of at least 5 trends in 2019 specifically for skincare products in the UK was not found, beyond market reports accessible beyond a paywall, the research team was able to identify several insights across magazine and journal publications within the beauty industry (e.g., Vogue UK, Harper's Bazaar UK, The Telegraph) and global market research firms (e.g., Mintel, Mordor Intelligence) to demonstrate innovative or cutting edge trends in beauty trends in the future, including the skincare sector, and areas in which the skincare sector has grown in the UK in 2019.
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Skincare Brands: Marketing Case Studies

Case studies of skincare brands that conducted successful marketing campaigns have been presented for NIVEA and Simple Skincare. NIVEA's marketing campaign was held in Malaysia and targeted Malaysian men while Simple Skincare's marketing campaign's objective was to increase product trial rates and market share. A detailed overview of the research findings follows below.

NIVEA

Description of Marketing Campaign

What Brand Hoped to Achieve

Results of the Marketing Campaign

  • The marketing campaign was a success with NIVEA MEN "achieving its highest ever-recorded market share, with the value of sales increasing by nearly 20% YOY."
  • Additionally, NIVEA MEN met and surpassed the target metrics in its benchmark i.e. Facebook fans increased to 63,115 representing a 25% increase from previous campaigns, digital impressions reached 5.4 million, daily page engagements on NIVEA MEN's Facebook page jumped to 500,000, and MYPadang content was liked and shared 119,8545 times across all social media platforms.

SIMPLE SKINCARE

Description of Marketing Campaign

What Brand Hoped to Achieve

Results of the Marketing Campaign

  • From the #SimpleContest hashtag, the brand was able to generate 2,400 photos. The brand also used this hashtag to connect with consumers on a deeper level by developing robust brand engagement.
  • Other metrics showing the results of the marketing campaign include a 5.7 times increase in click-through rate when customers engaged with user-generated content, 10 times increase in content per product since the launch of the brand, and more than 5 photos browsed per session as customer engagement increased.
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Part
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Skincare Trends: Global

Consumer trends in the global skincare sector include increased demand for natural/organic skincare products, use of online platforms in the purchase of skincare products, increased demand for products that protect the skin, personalization and customization of skincare products, and rising consumer preference for advanced technology and new innovation in skincare products. A detailed overview of the research findings follows below.

INCREASED DEMAND FOR NATURAL/ORGANIC SKINCARE PRODUCTS

Description

  • In reference to the skincare market analysis report by Transparent Research, one of the most prominent consumer trend in the global skincare sector is the growing demand for natural/organic skincare products.
  • As a result of this demand, manufacturers in the skincare sector continue to "unveil new beauty care products formulated from natural or organic ingredients so as to capture the attention of consumers."
  • Eventhough natural/organic skincare products are expensive, they are still witnessing significant sales globally as consumers continue to gain awareness of the possible side effects of chemical-based skincare products.
  • This trend is also the result of consumers wanting to live more healthy and active lifestyles that are free from chemical-based products.

Industry Impact

USE OF ONLINE PLATFORMS IN THE PURCHASE OF SKINCARE PRODUCTS

Description

Industry Impact

INCREASED DEMAND FOR PRODUCTS THAT PROTECT THE SKIN

Description

  • Another trend in the global skincare sector is the increasing consumer demand for products that protect the skin from the harmful environment.
  • According to the World Health Organization, in 2018, skin diseases affected around 900 million people globally. However, using skincare products such as sunscreen lotions is an effective way of preventing skin diseases like skin cancer.
  • Today, the omnipresent polluted environment, global warming, and the busy lifestyles of consumers have resulted in the need for skincare products that help to protect the skin and thwart damages to it.
  • According to Euromonitor, skincare products that have antioxidant, anti-flammatory and shielding properties are most likely to benefit from this trend as consumers continue to look for safe ways of protecting their skin from environmental aggressors.

Industry Impact

PERSONALIZATION AND CUSTOMIZATION OF SKINCARE PRODUCTS

Description

Industry Impact

PREFERENCE FOR ADVANCED TECHNOLOGY AND NEW INNOVATION IN SKINCARE PRODUCTS

Description

Industry Impact

Sources
Sources