In 2021, the beauty industry is taking with it many learnings and permanent shifts from the past year.

Synthetic beauty ingredients are also getting attention. And with a further emphasis on health and wellness, beauty brands have had to evolve from a one-dimensional category to something more holistic and inclusive.Īlong these lines, sustainability and a focus on environmental impact has taken on urgency at major beauty players looking to appeal to an increasingly eco-conscious population: Some, like L’Oréal and Estée Lauder, have announced goals to reach carbon neutrality, while others have begun innovating in more specific areas, like reusable packaging and refillable business models. More than a year later, Covid-19 continues to shape the space, but brands are now better equipped to deal with the seismic shift in consumer values and expectations.įrom virtual try-on features to AI-enabled skincare analysis to “waterless” beauty products, the pandemic has accelerated once fringe technologies. Certain areas within beauty, such as skincare, became an area of focus instead as people looked for ways to de-stress. Even major brands took a hit: Coty (owner of CoverGirl and Rimmel) saw its share price drop 52% at the end of March, while Ulta Beauty’s stock saw a 29% decline - though both have since bounced back as the US beauty market is expected to recover and reach pre-pandemic levels in 2021.Ĭovid-19 caused interest in categories like makeup - which was already falling - to further wane as consumers had fewer social engagements. 2020 was a redefining year for every industry - including beauty.īeauty sales declined as much as 30% in the first half of the year, according to McKinsey.

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