Insights And Opportunities For Retailers To Stay Ahead In A Dynamic Market

In the bustling arena of commerce, few sectors wield as much power and allure as the beauty and wellness industries. With figures that rival the GDP of small nations, these domains command attention and drive economies forward. Consider this: in 2022 alone, the global beauty and personal care products market flexed its muscles, boasting a jaw-dropping valuation of approximately USD$520.98 billion, with projections soaring to around USD$904.25 billion by 2030.

But wait, there's more. Wellness, the often-overlooked sibling, is no slump in the revenue department. In 2022, it commanded a staggering $5.6 trillion, according to the Global Wellness Institute. Yes, you read that right — trillion with a 'T.'

As consumer tastes evolve like the seasons, understanding the latest trends become paramount for those navigating the beauty and wellness labyrinth. During this article we will unravel the top 5 trends redefining the landscape in 2024. From the serene embrace of sleep-centric care to the fusion of skincare and makeup, these trends offer a glimpse into the ever-shifting desires and aspirations of modern consumers.

1. SLEEP
It’s no secret that the fading pandemic forced change and rules on the world, including being mandated to stay home, but 4 years on consumers are doing just this – staying home and focussing on their sleep! Interestingly, well-known restaurants in NYC are reportedly closing their doors earlier than ever, sighting 9pm being the new midnight. Naturally, beauty and wellness brands are flooding the market with an array of products to cash in on the booming opportunity. The growing sleep economy is also due, in part, to a mindset shift away from the hustle culture of the 2010s when getting as little sleep as possible was a badge of honour. But now we see brands hoping to cash in who are launching skincare, supplements, and technology tools all promising to improve sleep and overall health to the sleep obsessed!
 
One of the earliest adopters to the sleep game was Ariana Huffington, the founder of The Huffington Post who, in August of 2016, resigned from her prestigious role to then become the founder and CEO of Thrive Global - a behaviour change technology company with the mission of improving productivity and health outcomes. Her first act in her new role was to open a sleep pop-up store in the heart of New York City - “The idea behind Thrive is to end the delusion that we have to burn out in order to succeed and provide specific micro-steps, as we call them, that can make us not just survive, but thrive,” Huffington told Fortune. The physical pop-up included a mix of non-pharmacological sleep aids, high-end sleepwear, meditation guides, health-tech accessories, and books--including, of course, Huffington’s own bestsellers Thrive and Sleep Revolution. Huffington’s favourite product was Thrive’s phone bed charging station - “The idea is that it lives outside of everybody’s bedrooms--it’s a ten-port charging station so there’s room for daddy’s phone and mommy’s phone and the children’s phones so that by the time your children are teenagers it doesn’t become like a battle,” she said. I don’t know who needs to hear this, but you can still buy Ariana’s ‘Phone Bed’…
 
Some of the top sleep products trending so far this year are:

• Mouth Taping: which is said to help with everything from headaches to jaw pain to improving breathing + reducing snoring to jaw realignment has grown in popularity, most likely due to influencers.

• Melatonin Gummies: Made famous by Kourtney Kardashian Barker’s brand, Lemme, are all the hype right now, particularly off the back of Coachella where Kourtney’s wellness company, Poosh, gifted Lemme products to influencers and celebrities alike at their invitation only “Camp Poosh” brand activation.

• Sleep Tracking Devices and Apps: Brands like Oura, Sleep Score, and Whoop offer data-driven information used to monitor your sleep quality in addition to data on strain and recovery from fitness, and overall health.

• Pillow Spray: From the likes of This Works and Salt Lab claim to help consumers get a great night's sleep by helping them fall asleep faster and wake feeling more refreshed through the use of super blends like magnesium, Lavender, Camomile and Vetivert.

• Loop Earplugs: If you somehow haven’t been targeted via social media by Loop then you should go buy a lottery ticket. These guys have created earplugs specifically to aid sleep by significantly reducing environmental sounds such as noise from nearby traffic, a noisy neighbour, or a snoring partner…*Immediately adds to cart*

• Silk Pillowcases: The beauty benefits of silk pillowcases are quite compelling—reducing friction helps to prevent sleep lines and hair breakage while keeping consumers naturally hydrated and preserving youthfulness. Plus, they can encourage an indulgently comfortable night's sleep. One brand leading the way in this space is Shhh Silk, favourited by celebrities like Miley Cyrus, Selena Gomez, the Kardashian-Jenner family, and Shay Mitchell.

2. LED FACE MASKS
LED skincare, once confined to the realms of professional clinics, has now become increasingly accessible to consumers, thanks to technological advancements (and a little pandemic 💁‍♀️) the popularity of at-home beauty devices has continued to grow. Another strong influence in this space has, of course, come from the adoption of LED by influencers (cue Emilie Kiser).
Popular brands like Therabody, the original creator of the TheraGun, have launched their own LED product, TheraFace. These devices utilise various wavelengths of light to target specific skin concerns, such as acne, wrinkles, and hyperpigmentation.
With consumers continually upping their skincare game, we don’t see this trend disappearing anytime soon.

3. SKINCARE INFUSED MAKEUP
The beauty industry is witnessing a convergence of skincare and makeup, with consumers increasingly seeking products that not only enhance their appearance but also provide skincare benefits – clearly, we’re in our “efficient era”. According to market research firm Mintel, the global skincare-makeup hybrid market is projected to grow at a CAGR of 8.6% from 2021 to 2026, driven by consumer demand for multifunctional beauty products.

One product getting a lot of attention in this space is the Kosas Cosmetics Revealer Skin-Improving Foundation with SPF 25. Sounds like just a foundation sunscreen combo, but this powerhouse also contains a blend of skincare actives like Hyaluronic Acid, Niacinamide, Peptides, and Squalane. This hybrid product caters to consumers looking for convenient and time-saving solutions that deliver both cosmetic and skincare benefits.

The surge in skincare-infused makeup mirrors shifting consumer priorities towards skin health. With increasing awareness about skincare ingredients, consumers seek makeup with nourishing components and additional benefits. Retailers can seize this trend by offering hybrid products that blend cosmetic and skincare benefits, positioning themselves as trusted sources of beauty expertise through ingredient education.

4. TWEEN SKINCARE & MAKEUP
Recent research from The Business of Fashion and McKinsey reveals that skincare, surpassing makeup, is anticipated to become the largest sector, projected to escalate from $190 billion in 2022 to $260 billion by 2027. This seismic shift in consumer preferences underscores the significance of the Tween Skincare & Makeup trend, as younger demographics exert greater influence on market dynamics (and their parent’s wallets).

This trend is further fuelled by the explosion of brands targeting tweens and younger demographics. For example, Yawn offers makeup and skincare for customers as young as 3 years old!? While Bubble Skin Care launched acne and skin-texture products specifically tailored to Gen Z. Gryt, launched in 2023, focusing on tweens and teens but is accessible to those as young as eight years old. But the brand really rocking the bank balance is Drunk Elephant. The Guardian recently reported “It seems a plague of “Sephora Tweens” have been raiding available stocks of Drunk Elephant skin treatments at the makeup shop before mature consumers can get them. Deprived, older women have declared intergenerational war”. Its worth highlighting that their constantly sold out Lala Retro™ Whipped Cream is AU$100 a pop!

With such brands entering the market, the accessibility and availability of tween skincare and makeup products are increasing, catering to the preferences of young consumers…and their parents.Top of FormBottom of Form

5. LOUD BUDGETING AKA DUPES
Last, but certainly not least, is a trend we’ve been watching play out on social media - Loud Budgeting or Dupes. The trend is characterised by the rise of budget-friendly alternatives, not limited to the beauty industry, reflecting the shifting consumer attitudes towards affordable yet effective products.

This growing trend underscores the importance of offering accessible options to cater to diverse consumer preferences and budgetary constraints. The emergence (or re-emergence) of brands like MCoBeauty, renowned for their budget-friendly dupes of luxury products, exemplifies this trend in action. MCoBeauty's success, set to hit $70 million in retail sales revenue in 2024, underscores the demand for affordable alternatives in the beauty landscape.

As the beauty and wellness industry continues to evolve, staying abreast of emerging trends is essential for retailers seeking to meet the needs of their customers. From the importance of sleep to the rise of tween skincare, each trend offers unique opportunities for retailers to innovate and connect with consumers. By understanding these trends and adapting their offerings accordingly, retailers can position themselves as leaders in the ever-changing beauty landscape.

To stay ahead of the latest trends and insights in the retail industry, partner with RetailOasis. Our team of experts specialise in helping retailers navigate the dynamic beauty and wellness market, providing strategic guidance and actionable insights to drive success. Contact us today to learn more about how we can help your business thrive.