In 2022, the beauty industry saw big changes – including major shifts in sustainability, finance, trends driven by influencers and social media and more. As the new year approaches, there are significant movements that we will see gain traction in early 2023 and beyond. To keep up with the fast pace of the industry, companies and leaders will need to adapt to meet progressive consumer demands – and they will have to do so quickly.  

‘Wellness’ Will Overtake ‘Beauty’

Heading into the new year, we will begin to see a shift from traditional “beauty” practices moving toward overall wellness. In the last five years, beauty standards have permanently changed, which was accelerated by the events of 2020.  Today’s consumer not only seeks product benefits, but to feel confident, comfortable, and great in their own skin. There will be less of a singular goal of making people look a certain way, with emphasis placed on also making them feel a certain way – from confidence to true physical impact.  For example, 2023’s must-have foundation must offer a flawless finish, but also robust skin improving benefits to meet the consumer’s needs. In 2023, we can expect to see this trend dominate as products and campaigns are centered around a more holistic approach to beauty. 
 

R&D Time Will Be Cut in Half

The rise of frequently changing beauty trends, viral products driven by social media, and changing needs of consumers will require research and development timeframes to be shortened substantially. Traditionally, R&D has had a timeframe of approximately 16-18 months per product – or longer. This timeframe will no longer equal long-term success. In a world that moves faster than ever, one viral trend can impact an entire product line, R&D pipelines must be shifted. Timelines should look more like 12-15 months at the very maximum and ideally less in order to catch consumers while they are still interested in a particular offering. The brands that thrive in 2023 and over the next five to ten years will be those that are nimble, flexible and keep an ear to the ground on what’s next.   
 

Clean Beauty Is Dead—The Era of Pure Beauty Is Here

As an industry, beauty is facing a crisis of accountability. Clean beauty has gone from a benchmark for quality products, to a marketing term lacking true standards and requirements. Looking ahead, the beauty industry should be producing products with streamlined, high-quality ingredients that are pure from the start, and place an emphasis on real benefits – such as skin health, hydration and more. Consumers are demanding more transparency than ever, and products that are “pure” will become the new gold standard. We expect this to segue into true accountability for the industry as a whole as well, looking at ingredient sourcing, packaging, sustainability and more for building a quality product.   
 

Looking Ahead 

The ever-changing status of popular products, updated ingredients, and social trends requires the beauty industry to rapidly adapt in order to survive. The industry has seen such substantial shifts over the past few years, and this is something we do not expect to slow down. Paying close attention to sectors that have been gaining momentum is key to staying ahead in an increasingly competitive landscape while meeting evolving consumer needs.


About the Expert  – Pascal Houdayer, CEO, Orveon—a Happi Top 50 company
Pascal Houdayer serves as the “Social Architect” (as he likes to see the role of a CEO) of Orveon. He has more than three decades of experience leading beauty and personal care businesses across both developed and emerging markets, including nearly 20 years at Proctor & Gamble. He previously served as CEO of NOAS, a global leader in dermo-cosmetics, as well as EVP and member of the Management Board at Henkel, where he was responsible for the Beauty Care Division. Pascal most recently served as President and Founder of stratosPHere, a global private equity senior advisory and consulting firm.
 
Pascal graduated with a dual MBA from ESSEC (Paris, France) and York University (Toronto, Canada) before moving to Harvard Business School and then going on to serve as a co-pilot in the French Air Force. Pascal is married with three children, an active UNICEF ambassador and is currently living in New York City.