Cosmetics market foresees recovery and growth in 2022
Industry reports indicate sales activity back to pre-pandemic levels
The beauty industry has partially recovered from the post-pandemic sales downturn and might be reaching 2019 levels this year. Despite the 8% decrease in sales registered in 2020, the beauty and personal care market showed signs of optimism and relied on sales channels diversity, focusing on growing categories and new generations of consumers to reverse the fall.
Besides the obvious effects of the pandemic on sales, and the subsequent economic downturn, the past year was challenging for all industries with price increases in freight costs, energy and raw materials.
The beauty market, however, showed resilience thanks to the good results reached by some categories of products, as shown in the 2021 Annual Report from L’Oréal, a leading global beauty company.
This growth was led by the skincare market, a category that must be the focus of beauty brands in the next few years. Estimates indicate that skincare should grow 10% in 2022 and will account for 34% of the global beauty market by 2024. More specifically, experts see growth potential in ‘clean beauty’ skincare and haircare, and business segments like dermocosmetics.
Makeup and fragrance market performance will depend on pandemic-driven social restrictions and mask usage in each region.
Online distribution channels, particularly e-commerce and, more recently, social commerce, will also be important drivers for the next years.