5 Trends That Are Reshaping the Beauty Industry
The beauty industry is booming, with population growth acting as a major driver of demand for beauty products and services. The global beauty industry is expected to exceed $716 billion by 2025, up from $483 billion in 2020, according to a report from Common Thread. Increasing expansion into e-commerce and a client base that's willing to pay higher prices for higher quality products will drive that growth.
Whether you own a hair salon, nail salon or another beauty-related business, it's important to know which trends may be shaping the industry for the near and long term. From the rise of the waterless nail salon to digital hair salon advertising, here are some of the biggest trends unfolding.
Trend #1: On-demand beauty
The COVID-19 pandemic presented the beauty industry with a unique challenge: How to deliver products and services amid social distancing requirements and ever-evolving public health and safety guidelines.
"We're a hands-on, service-based industry so many small spa owners had to pivot," says Natarsha Bimson, a licensed aesthetician and founder of Violet Hour Skin.
Some of the ways salons have adapted include a move to online ordering and curbside pick-up for beauty products, offering beauty services outdoors, booking Zoom consultations with clients and introducing mobile beauty services.
As mandates ease, clients have been able to return to salons for in-person visits. But the beauty industry continues to recognize the need for—and value in—offering alternative ways to deliver products and services.
"It's offered many spas a new stream of revenue that's staying for sure," says Bimson.
Considering how and where you might be able to innovate with the delivery of your business's products and services could help you diversify your sources of income. This could help make your beauty business more resilient when faced with disruptive events, such as a pandemic or a recession.
Trend #2: Waterless beauty
The waterless beauty trend originated in South Korea and gained popularity, primarily because of the associated skin benefits. The practice involved using beauty products that contain no or little water in order to maximize the benefits of other ingredients, such as natural oils.
Waterless beauty has taken on new meaning, however, as salons large and small seek out environmentally-friendly solutions. For example, a waterless nail salon may offer manicures or pedicures that replace soaking nails in water with heat treatments or the application of waterless creams and lotions.
Hair salons, meanwhile, may look for other ways to conserve water. L'Oreal, for example, is rolling out a program that would introduce the use of low-flow shower-heads in its global salons. This measure is expected to conserve four billion liters of water per year.
While a project of that scope may not be feasible for smaller salons, it can serve as inspiration for implementing waterless beauty solutions on a realistic scale. Those solutions could help make your business more environmentally-friendly, while potentially saving money if you're reducing the use of energy and natural resources.
Trend #3: Digital marketing
Traditional nail salon and hair salon advertising tacticsare increasingly giving way to online marketing.
"Today, everyone is on social media whether they want to be or not, so without a digital presence a business will miss out on getting their message in front of their ideal client," says Bimson. "These platforms also make it much easier to reach your ideal client so your messaging can be much more specific."
Some of the forms digital marketing is taking include:
- Offering video beauty tutorials and tips
- Partnering with influencers and micro-influencers in the beauty space
- Launching beauty blogs and/or podcasts
- Email marketing
Evaluating your current marketing plan can help you identify potential gaps that you may need to fill and opportunities you can tap to expand your digital footprint.
Trend #4: Increased inclusivity
Another trend that ties into the growth of digital beauty salon and hair salon advertising is the use of inclusive imagery and language in marketing campaigns. By promoting diversity across gender, race, body types, cultures and lifestyles, salons of all sizes are in a position to broaden their reach and customer base.
Something else Bimson says she's seeing more of is the creation and use of unisex products and products that are marketed without gender constraints. These brands may use words like "gender-fluid", "genderless" or "gender-neutral" to promote inclusivity.
If you're interested in promoting inclusivity, it may be helpful to review your current marketing plan, the products you offer and the brands you promote. This can make it easier to see where you can make small but impactful changes to make your beauty business more inclusive.
Trend #5: Focus on wellness
The wellness industry has grown by leaps and bounds as more people seek out products and services that are designed to help them look and feel better, physically, mentally and emotionally. Wellness is a $4.5 trillion market globally, according to the Global Wellness Institute, something the beauty industry has noticed.
"Wellness is much more a part of the beauty industry now as the science expands our understanding of how everything is so connected," says Bimson.
She says that when working with clients to develop a treatment plan, for example, she considers every aspect of their lifestyle. That includes sleep habits, stress levels, movement, nutrition and gut health.
Taking a similar approach that involves viewing clients through a holistic lens when providing beauty services or recommending products is a simple way to introduce this trend into your business. You can also consider how to promote wellness and mental health among your staff, if you have employees, which could reduce turnover and increase retention.
Staying on top of the latest beauty trends can help your business continue to grow and adapt, which can be critical to your bottom line. Having the right insurance coverage also matters for protecting your investment. Get in touch with your local independent Westfield agent to learn more about the business insurance solutions we provide.