Ever since the arrival of the internet and online content, the beauty industry has seen immense growth. It was a result of the accessibility of cosmetic products. Also, the emergence of online beauty gurus with makeup tutorials and brands. The beauty industry generates $500 billion in sales annually and is responsible for providing jobs to millions.
Since the pandemic changed the manufacturing and retail of beauty products, it resulted in a decline in production and sales. In 2020, the revenues of the global beauty industry fell by 30%. And in China alone, the sales of beauty products fell by 80%. This was the result of the market shut down as well as the change in priority of the customers.
Now the ever-growing beauty industry is facing a downfall. And especially the premium beauty brands are facing huge losses.
So, what are the causes of change in the beauty industry? Here are some of the reasons:
Change in priorities
The pandemic hit people hard. Most people started working/ studying from home and many people lost their jobs. All of this led to the change in priorities that people had. Rather than spending money on makeup items, people started saving up. The year 2020 saw a rise in frugality in people.
Since there was an uncertainty of paycheck, people stopped spending on unnecessary items. People started focusing on their health and hygiene rather than on their appearance. They changed their priorities to spending on hygiene products like sanitizers, soap, cleaning products, and bleach.
Masks= No makeup
Another reason for the decline in sales of makeup is attributed to the mask mandate and social distancing rules. Everyone has to now wear masks when going outside. So there is no reason why people needed to buy and wear makeup that no one could see. Similarly, fragrances and perfumes also saw a decline in sales.
It also a result of people working from home. When working from home, people don’t really bother wearing makeup or fragrances.
Shift to skincare
The beauty industry has also seen a shift from makeup to skincare in the past years. More focus is placed on skin and hair health rather than correcting the flaws. The popularity of the skincare trend can also be attributed to creators on TikTok like Skincare By Hyram. Dermatologists joining YouTube, TikTok, and other social media platforms have also caused this shift.
So, the beauty industry is now churning out skincare and haircare products rather than producing or investing in makeup. The trend comes as a result of the focus on the self-care trend which started from lockdowns.
Beauty product customers are now focusing on corporate social responsibility on top of formulation and products. The rise of the “Black Lives Matter” movement led people to evaluate the practices of companies and brands. And customers are starting to drop brands that added no value to the movement or are not about inclusivity.
Privileged individuals are also starting to support small businesses rather than corporate giants. They are buying from local small brands and consuming their products. So as a whole, the big giant beauty brands are experiencing a decline in revenue.
Also read: Cheap Ways to Upgrade Your Skincare Routine