An uncertain economy has some consumers rethinking their beauty purchases, according to researchers at leading research firms. At Cosmoprof North America, Sarah Jindal of Mintel and Yardin Horwitz of Spate shared results of a joint-research project analyzing consumer spending priorities. In “A Prescriptive Approach to Beauty,” the presenters noted that, compared to the pandemic years, interest in beauty has been on the decline. They blamed that lack of interest, in part, to concerns about money.

During the early days of the pandemic, consumers went online to learn more about ingredients like retinol, vitamin C and niacinamide, as well as treatments such as brow lamination, lip blushing and gua sha, according to Google search data. In fact, 87% of US beauty consumers researched the ingredients in their products with online reviews ranking as a top resource.

“During the pandemic, people were very engaged, searching for beauty solutions,” recalled Horwitz.

The Rise of the Dermatologist

But after bombarding their skin with at-home remedies, consumers looked in the mirror and didn’t like what they saw. As a result, in 2021-2022, interest in dermatologist-recommended shampoo and hair growth products surged. In fact, 35% of US beauty consumers considered “recommended by doctors/dermatologists” an important product purchase driver.

In 2022 and 2023, consumers are out and about and time-strapped once again. According to Mintel/Spate data, 87% of US beauty consumers said they are trying to make their makeup routines as quick as possible, which explains why searches for passive beauty routines are on the upswing. Searches for air dry cream and tubing mascara each rose 66% YoY, while cheek stain searches rose nearly 54%. At the same time, 27% said skincare devices are more effective than traditional products, underscoring the YoY growth for searches such as nano-needling (+176.4%) and Moxi laser (+127.4%).

High Inflation Rates Impact Purchasing Decisions

According to Jindal, high inflation and rising fuel costs have consumers rethinking spending, too.

“We see trading up and trading down behavior,” said Jindal. “During the pandemic, skincare and home fragrance were very important. Now, makeup is more of an interest. People are starting to balance beauty budgets in new ways.”

For example, in a March 2023 consumer survey, when asked “If you were worried about money, how would spending on the following types of beauty products change?”

• 35% would spend less on fragrance;
• 29% would spend less on makeup;
• 25% would spend less on skincare; and
• 22% would spend less on hair care.

Personalization Attracts Price-Conscious Consumers

So how can beauty companies attract these price-conscious consumers? The speakers suggested creating solution-oriented recommendations based on specific skin, hair and nail issues. For example, Jindal noted Shiseido is researching skin diagnostics by looking at indigenous skin bacteria as a unique skin fingerprint that could allow for super-premium personalization.

At the retail level, in London, Selfridges opened Dr. Vali Experiential Wellness Centre. Here, visitors choose from an extensive menu of treatments across six areas: skin, face, smile, hair, body and wellness. And while still in the nascent stage, the University of Pennsylvania developed shape-shifting microbots that brush and floss teeth.

“Consumers want efficient, potent products at home,” explained Jindal.

Underscoring this demand, this year, Mintel introduced its Beauty Rx trend, which looks at the medicalization of beauty as consumers demand proof behind claims and validation for their spend. It fits in well with Spate’s data which uncovered a surge in searches for red light therapy, topical tretinoin, comedonal acne and hormonal acne.

“Consumers are looking for solutions for specific types of acne,” explained Horwitz. “They are getting much more sophisticated. There’s been a shift in language.”

For example, more ads forego airbrushing and show models with acne scars and all. At the same time, psychodermatology has taken hold in the market.

“What happens in the mind, shows on your face,” explained Jindal. “There is a close connection between the brain and skin.”

She said successful retailers will leverage technology and experts to create a more tailored experience for their customers; even CVS has a skincare center with diagnostic devices.

But it’s not just skincare. According to Horwitz, prescriptive beauty is impacting every beauty category—skincare, hair care and makeup.

“Google searches for 'hair transplant' are soaring,” she noted.

Other popular searches include head spa, hair serum and ketoconazole shampoo, which is a medicated shampoo designed to treat fungal infections on the scalp.

“We’ve talked about the ‘skinification’ of hair for seven or eight years,” noted Jindal. “Now it’s everywhere.”

That translates into demand for serums and scrubs with hyaluronic acid and ceramides.

“It’s easy to move from skin to hair—we even see hormonal treatments for hair,” explained Horwitz. “Look to skincare to see the future of hair care.”

Beauty’s Changing Face

The growing popularity of professional services like blepharoplasty and eyelid tightening are just some of the ways that procedures are changing face shapes. The speakers noted that consumers are using makeup to manipulate their face shapes, adding dimension with new textures and finish and getting inspired by professional procedures.

According to Mintel data, 53% of shoppers have a thirst to learn; 39% trust experts and 45% say it is acceptable to get procedures. Jindal said beauty consumers are eager to learn more about the products they use and the ingredients in them.

For brands, the speakers explained that beauty services and at-home treatments must prioritize the needs of modern facial skincare users. Underscoring that insight, Mintel found:

• 53% of female facial skincare shoppers said constantly trying new skincare products made their skin condition worse;

• 79% of Spanish adults who get pro beauty and grooming treatments say their service provider advises them on how to care for hair and skin; and

• 33% of US beauty and personal care shoppers spend more time on their personal care routines compared to the previous year; 20% said they spent less time.

To reach today’s savvy beauty shoppers, Horwitz and Jindal recommended pushing innovation through elevated services and spas like the World Spa in Brooklyn and combining it all with at-home beauty devices such as the Lyma Laser and even low-tech options such as masking, which was front-and-center during the pandemic.

According to the speakers, since the start of the pandemic, there’s been an unprecedented demand for cosmetic procedures. As a result, there’s been growing demand for skincare formulas positioned for their “fast-healing” properties. For example, Lilfox Cupu-Cool Hyaluronic Jelly Balm is billed as an overnight treatment balm and moisturizing mask, making it “exceptionally healing for post-procedure skin.” Brands that are taking advantage of the professional skincare and hair care link include LaRoche-Posay, CeraVe, Nutrafol and Hims.

“These brands have owned the space for the past few years,” observed Horwitz. “LaRoche-Posay and CeraVe have been crushing it.”

Now, in the hair care space, Nutrafol is growing quickly. So quickly, in fact, that Unilever acquired the company last year for an undisclosed amount.

Technology Drives Beauty’s Future

Horwitz and Jindal told Cosmoprof North America attendees that brands will continue to invest in technology, with the next generation of personalization catering to individual consumer needs. Furthermore, they predict advances in biology will lead to products with proven efficacy. Jindal noted that a growing percentage (20%) of US consumers recognize the efficacy of lab-grown, nature-identical ingredients.

At the same time, emerging technology in diagnostics and devices will lead to even more targeted precise skin care through advances in microbiome and hormone research, gene-editing, wearables and more.

“But don’t muddy the message with too much information,” warned Jindal.