Market Trends of North America Beauty And Personal Care Products Industry
Demand for Natural and Organic Skincare Products
Consumers nowadays prefer to make informed product choices based on their skin type and preferences. Rising pollution levels in urban cities, rapid climatic changes, stressful lifestyles, and unhealthy eating patterns can elevate the risk of skin sensitivity and allergies. Thus, due to the increased focus on personal grooming, there is a rise in the demand for beauty and personal care products with multi-functional advantages. Therefore, manufacturers are introducing a wide range of skincare products to capitalize on growing consumer interest in functional skincare. For instance, in September 2022, the clinically-proven, dermatologist-recommended clean skincare brand DERMA E was launched at Walmart, stocking ten products. The range included clinically validated Vitamin C, Hydrating, and Anti-wrinkle formulations. The products offered by the brand were 100% vegan and cruelty-free. Such product launches with claims to improve skin concerns supported and promoted by rising customer awareness regarding smart skincare are anticipated to capture significant market attention during the forecast period.
The United States Holds the Largest Market Share
Increased focus on personal grooming habits, high per capita income levels, and the popularity of smart and effective skincare are some major factors contributing to the demand for beauty and personal care products in the United States. Moreover, key players are adopting aggressive marketing strategies to improve their brand presence and visibility. They are also expanding their expenditure on digital advertising by collaborating with celebrities and social media influencers to reach a broader consumer base. For instance, in 2022, L'Oréal spent EUR 12 billion on advertising and promotions worldwide, an increase from EUR 10.59 billion in 2021.
At the same time, L'Oreal invested USD 3.04 billion in advertising in the United States. In addition, brands are shifting to sustainability by utilizing natural ingredients and sustainable packaging to retain their position in the market. For instance, in May 2023, Head & Shoulders expanded its product portfolio by launching BARE H&S’s first-ever nine-ingredient anti-dandruff shampoo in the United States. According to the company claim, this new anti-dandruff formula is free from sulfates, silicones, and dyes, with a recyclable bottle that contains 45% less plastic.
