Buoyed by robust H1, beauty brands look for significant surge in growth & ad spends in H2

As we step into the second half of 2024, the beauty industry is poised for continued growth and innovation, building on the dynamic trends observed in the first half. The global beauty market is increasingly driven by consumer demand for sustainability, inclusivity, and personalized experiences. With advancements in technology and a heightened focus on ethical practices, brands are evolving rapidly to meet these expectations. The industry's resilience is evident as it adapts to economic uncertainties, while the digital transformation continues to reshape how beauty products are marketed and consumed.

This story delves into the notable shifts and trends anticipated in H2 2024 within the beauty industry. From changes in consumer behavior to expectations around advertising spend, it explores how brands are navigating the evolving landscape. The piece also highlights the industry's focus on innovation, personalization, and sustainability, providing insights into how beauty brands are gearing up for the challenges and opportunities that lie ahead.

How has the H1 been for the entire beauty industry? What are the key and notable trends and changes that you have observed?

Puneet Bansal, Co-Founder, Suroskie, believes, the first half of 2024 has seen a dynamic landscape in the beauty industry, marked by several key trends:

Sustainability and Clean Beauty: Consumers are increasingly demanding products that are ethically sourced, environmentally friendly, and free from harmful chemicals. Brands are responding by emphasizing natural ingredients, sustainable packaging, and transparent supply chains.

Inclusivity and Diversity: There's a growing focus on inclusivity, with brands offering a wider range of shades, textures, and formulations to cater to diverse skin tones and hair types.

Personalized Beauty: Advancements in technology have enabled personalized skincare and makeup recommendations, tailoring products to individual needs and preferences.

E-commerce Boom: Online shopping continues to gain momentum, with more consumers opting for the convenience and variety offered by digital platforms.

Social Media Influence: Social media platforms like TikTok and Instagram remain powerful influencers, shaping beauty trends and driving product discovery.

Dheeraj Bansal, Co-Founder of Recode Studios, noted, “The H1 has been a dynamic period for the entire beauty industry. In 2023, India’s Beauty & Personal Care market was valued at USD 25.96 billion and is estimated to reach USD 35.21 billion by 2028. One of the major trends behind this rapid growth is the rise of homegrown beauty brands. By understanding and catering to the specific needs of the Indian audience, these brands have disrupted the traditional market, offering products that are not only effective but also resonate with the unique preferences and skin types of local consumers.  Another key trend has been the growing emphasis on personalization and inclusivity. Consumers today are no longer satisfied with one-size-fits-all solutions. They seek products that cater to their individual needs and celebrate diversity. Lastly, the digital transformation of the beauty industry has also been pivotal in shaping the market in H1 2024. From AI-driven skincare diagnostics to personalized online shopping experiences, technology has revolutionized how consumers interact with beauty brands. This digital shift has not only made beauty products more accessible but has also empowered consumers with the knowledge and tools to make informed decisions.”

Mini Sood Banerjee, Assistant Director and Head of Marketing, Amorepacific India, added here, “The first half has been dynamic for the beauty industry. The industry is experiencing unprecedented growth, driven by technological advancements and a shift towards innovation. There has been a significant surge in demand for natural and innovative ingredients, with 65% of consumers seeking eco-friendly brands and 55% willing to pay more for sustainable products. Hyper-personalization is also on the rise, as consumers increasingly expect tailored experiences, prompting beauty brands to leverage AI and AR.”

Sustainable and Ethical Beauty continues to be a major focus. Brands are increasingly adopting eco-friendly practices, such as reducing plastic packaging, using recycled materials, and embracing biodegradable ingredients. Biotech innovations are revolutionizing the industry, focusing on sustainability and lab-created ingredients to reduce environmental impact. The influence of K-Beauty continues to evolve, with innovations like Vitamin-C, Hyaluronic Acid, and Green Tea gaining popularity. Digital beauty has become a crucial aspect, with social media driving product purchases and influencer marketing on the rise. Wellness and self-care have become integral to beauty routines, with consumers seeking products that address stress, anxiety, and sleep quality. Clean beauty and ingredient transparency remain top priorities for many. Overall, it's exciting to see the industry evolve and respond to consumer demands for a more conscious, inclusive, and tech-savvy approach to beauty.

Banerjee further added, “The Clean and Minimalist Beauty trend is evolving, with consumers demanding products free from harmful chemicals and synthetic additives.Social Media Influence continues to drive trends and consumer behavior. Platforms like Instagram are key in shaping beauty trends, with influencers and viral content significantly impacting brand visibility and product popularity. Overall, the beauty industry is evolving rapidly, driven by technological advancements, consumer demand for sustainability and personalization, and a greater emphasis on inclusivity and wellness.”

Rishabh Sethia, Director & Business Administrator at MARS Cosmetics, noted, “In H1, the beauty industry has seen significant shifts. There has been a clear move towards glossy makeup with consumers opting for radiant, high-shine products over traditional matte finishes. Skincare-infused makeup, which combines cosmetic and skincare benefits is also on the rise.  Additionally, there's a growing preference for light, natural makeup rather than heavier looks. Lastly, value-added products that offer versatility, such as multipurpose items like MARS Blush Hour, MARS 4-in-1 Travel Brush and MARS The City Paradise Face Palette have become increasingly popular.”

What are the notable shifts in consumer behaviour that you expect in H2?

Puneet Bansal said, “For the second half of 2024, we can anticipate the following shifts in consumer behaviour:

Economic Uncertainty: As economic conditions may become more uncertain, consumers may prioritize value and affordability, leading to a shift towards budget-friendly options.

Experiential Shopping: Despite the convenience of online shopping, consumers may seek in-store experiences for product discovery, testing, and personalized recommendations.

Focus on Self-Care: The ongoing emphasis on self-care and well-being is likely to drive demand for products that promote relaxation, stress relief, and overall wellness.

Ethical Consumption: Consumers will continue to be conscious of ethical and sustainable practices, supporting brands that align with their values.”

Dheeraj Bansal said, “In recent years, consumer preferences and purchasing habits have evolved rapidly due to numerous factors, including technological advancements, increased access to information, and many more. Today modern consumers are increasingly becoming ingredient-conscious, meticulously examining product labels to avoid harmful chemicals. This shift has fueled the demand for "clean beauty" products, which are free from controversial ingredients like parabens, sulfates, and phthalates. Additionally, the accessibility of information and global cultural exchanges have made consumers more discerning, seeking products that align with their values and health priorities. At Recode Studios, we recognize these shifts and are dedicated to aligning our product offerings with the evolving needs of our consumers. Our commitment to transparency, safety, and innovation ensures that we provide products that not only meet but exceed the expectations of today's discerning consumers.”

Mini Sood Banerjee remarked, “As we head into the second half of the year, I've noticed a significant shift in consumer behavior towards embracing natural and sustainable skincare practices. There is a growing demand for eco-friendly packaging and cruelty-free products. Consumers are also seeking personalized skincare solutions, driven by their unique skin concerns and goals. Additionally, the influence of social media has led to an increased interest in skincare routines and product demonstrations. With the rise of hybrid work models, self-care and skincare are becoming integral parts of daily routines. Consumers are willing to invest in premium products that deliver tangible results.”

She further said, “Overall, it is an exciting time for K-beauty skincare in India, and Amorepacific brands like Innisfree, Laneige, Etude & Sulwhasoo are poised to meet these evolving needs.  There is also Emphasis on Personalized Solutions, The trend towards personalization is becoming more pronounced. Consumers are looking for beauty solutions tailored to their specific skin concerns. There is a shift towards multi-functional beauty products that offer several benefits in one. Consumers are seeking products that streamline their routines and provide more value, such as moisturizers with SPF or serums with anti-aging properties. These shifts indicate a more informed, conscientious, and tech-savvy consumer base that values personalization, sustainability, and holistic well-being.”

According to Rishabh Sethia, “In H2, consumers are showing a strong preference for simplified beauty routines, moving away from complex, multi-step regimens. There is also an increased demand for ethical makeup options, with consumers prioritizing products that are cruelty-free and vegetarian, reflecting a growing concern for environmental and ethical issues.  Moreover, consumers are becoming more experimental, showing a willingness to try new and innovative products, which indicates a shift towards personalization and a desire to express individuality through beauty choices.”

In terms of growth Ad spends, what are your expectations from H2?

Puneet Bansal said, “While the advertising landscape is subject to various factors, including economic conditions and industry trends, we can expect the following regarding ad spend in the beauty industry for H2:

Continued Growth: Given the industry's resilience and the ongoing focus on digital marketing, ad spend is likely to continue growing.

Shift Towards Digital Channels: As consumers increasingly spend time online, brands will allocate more resources to digital advertising channels like social media, influencer marketing, and search engine marketing.

Focus on Performance Metrics: Advertisers will prioritize measurable results, such as click-through rates, conversions, and return on investment.

Increased Competition: As more brands enter the beauty market, competition for ad space and consumer attention will intensify.”

Dheeraj Bansal said, “In the H2, we anticipate significant growth in the overall ad spending sector. Studies indicate that digital ad spending is outpacing traditional media by over five times, reflecting the shifting dynamics in consumer engagement. Also, the social network ad spending is projected to be 10% higher than previous forecasts, with an expected reach of $82.89 billion this year—a 13.5% year-over-year growth. At Recode Studios, we plan to capitalize on this trend by increasing our investment in targeted social media campaigns, using the platform's expansive reach and precision to connect with our audience more effectively, driving both brand visibility and consumer engagement.”

Mini Sood Banerjee noted, “As we enter the second half of the year, I expect a significant surge in growth and ad spends for K-beauty skincare. With increasing consumer interest and adoption, we anticipate an increase in marketing investments. Digital channels will continue to dominate, with a focus on influencer partnerships, social media, and e-commerce activations. We are also exploring innovative formats like augmented reality and virtual try-ons to engage with our audience. We will be amplifying our offline presence through strategic partnerships and experiential events. Overall, our goal is to drive brand awareness, education, and trial, ultimately fueling business growth and market share expansion.”

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