Page 69 - Export Magazine

REPOR T

One such area brands will encounter such complexities in is grow at a fast pace, but still remains the smallest of the three
distribution, which has begun to experience somewhat of a categories at present.
revolution in recent years that has changed the landscape In the skincare segment, facial exfoliators, cleansers, creams
quite considerably. Before we dive into the challenges brands and serums have all proven especially popular, as have sun
might encounter there, however, let’s examine the Beauty care products and facial treatments. Lipstick, colour cosmetics
and Wellness market in the USA as a whole in order to gain a and nail care products have boomed in the cosmetics
wider understanding of the current landscape. segment, with brands born from makeup artists and social
media influencers having the highest revenue gains among all
makeup brand types.

geNeRAL ouTLooK foR THe uSA’S
BeAuTy ANd weLLNeSS mARKeT

Generating almost a third of total market revenue just on its demANd foR INNoVATIoN,
own, cosmetics lead the Beauty and Wellness market with eNVIRoNmeNT-fRIeNdLy
a value of US$6.8bn in 2021, closely followed by fragrance PRoceSSeS ANd oNLINe PReSeNce
and skincare, which have values of US$6.1bn and US$5.6bn As young, tech-savvy
respectively. consumers begin to
trust AI technologies
for advice and product
recommendations in
the skincare sector and
pay closer attention to
social media chatter
about brands and their
products, an ongoing
trend of digitisation is
heavily influencing the
Although sales of make-up have yet to return to the levels USA’s Beauty and Wellness market.
they were prior to the COVID-19 pandemic, this area of the This sway towards
market is still an incredibly powerful one, with American technological advancement
women spending an average of US$313 per month on beauty is also being reflected in
products, which equates to a lifetime spend of approximately the new products that are
US$225,360. being developed by brands
Between 2020 and 2021, the segments which experienced such as L’Oreal, Shiseido
the strongest rates of growth in the Beauty and Wellness and Estee Lauder, which
market were fragrance, where a consumer desire for higher- use innovative ingredients
priced scents drove 49% growth, and haircare, which saw 47% and production methods to
growth thanks to a focus on embracing “natural” hair by the differentiate themselves from
healthy living movement. the competition.
This trend of strong growth was carried through into the first One notable consequence
half of 2022, averaging at an overall increase of 17%, and is of this shift towards the
expected to continue upward. Mass and masstige brands hold online world is that it is now
the largest market share at around 51% today, while premium more important than ever for
brands hold 25%. The luxury beauty industry continues to brands to present themselves

67 www.exportmagazine.net
67 www .e xpor tmagazine.net