Health And Beauty – Global

Health And Beauty Market Overview

The cost-of-living crisis is significantly impacting the health and beauty industry, but growth is achievable if brands align with changing consumer needs. Consumers are most influenced by how a product or service will impact their health and well-being before making a purchase. This was true before the pandemic but has since remained amplified as consumers highly cautious.

The health & beauty market research report outlines the key consumer and innovation trends impacting the health and beauty industry in Q2 2022. It explores market dynamics, industry deals, and news highlights, all of which are influencing innovation and purchasing decisions in the sector today.

Health & Beauty Market Dynamics

The health and beauty industry is expected to experience value growth between 4% and 7% each year during the 2021-2026 period as consumer purchasing behavior is returning to normal post the height of the COVID-19 pandemic. Make-up and feminine hygiene are the health and beauty sectors that will observe the fastest compound annual growth rate during 2022-26, closely followed by oral hygiene and haircare. Haircare is predicted to see strong growth aided by increased awareness of scalp care. Skincare is expected to see the slowest growth but from an already large value base.

Easy & Affordable has become more influential given rising inflation globally and consumers are seeking to make savings wherever possible. Many are likely to trade down to private label goods, particularly on everyday toiletries. The COVID-19 mega-theme continues to drive other mega-themes such as direct-to-consumer and digitalization which have remained important as consumers continue to spend more time at home compared with pre-pandemic times.

Individualism & Expression continues to be influential in the health and beauty industry as consumers are interested in learning about each ingredient within product formulations to meet their concerns. Sustainability & Ethics is another important theme as consumers take part in circular beauty to reduce their environmental impact. Refillable packaging and biodegradable ingredients will become more relevant in the future.

Health & Beauty Market Segmentation by Sectors

The key sectors in the health & beauty market are skincare, haircare, personal hygiene, make-up, oral hygiene, fragrances, feminine hygiene, male toiletries, and suncare. Skincare is the leading sector in the health & beauty market in 2022.

Health & Beauty Market Analysis by Sectors

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Health & Beauty Market Segmentation by Deal Types

The key deal types in the health & beauty market are private equity, acquisition, venture financing, asset transaction, equity offering, merger, and partnership. In Q2 2022, private equity is the most valuable deal type followed by acquisitions.

Health & Beauty Market Analysis by Deal Types

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Key Take-Outs in the Health & Beauty Market

• Consumers are more aware of key ingredients in products as many simplified their skincare routines during the pandemic, seeking products with simple or fewer ingredients listed on the packaging. Brands should ensure ingredients are listed on the pack and their benefits are clearly explained within marketing campaigns.
• Shoppers will trade down to own brand products this year to cut costs due to long-term price increases across the health and beauty industry, benefitting private label manufacturers. Price inflation has accelerated due to the Ukraine crisis which is causing significant supply chain disruption.

• Sustainability is a trend that is seeing huge growth across the health and beauty industry as consumers are becoming more aware of global issues. Brands are expected to use environmentally-friendly packaging and ingredients in their products as well as use refill options for consumers to participate in the circular economy.

Competitive Landscape

The key companies in the health & beauty market are Johnson & Johnson, Procter & Gamble, LVMH, and Pfizer.

Health & Beauty Market Report Overview

Key Highlights

• The cost-of-living crisis has worsened this quarter and is impacting consumers’ ability to spend
• The overall value of health and beauty products will experience year-on-year growth from 2021 to 2026 as consumer purchasing behavior returns to normal post-COVID 19
• Health leads to consumer trends, but manufacturers must also cater to price-consciousness.

Reasons to Buy

• Assess the global market development and categories driving performance in health and beauty.
• Identify the key consumer behaviors shaping health and beauty and their resulting trends.
• Gain access to forward-looking recommendations and future innovation opportunities.