Anna Mayo, Client Director, Beauty Vertical at NielsenIQ06.09.22
Despite supply chain pressures and inflation’s effects on pricing, the health and beauty industry is thriving with a focus on premium, personalized, and diverse products. Across major national brands and a growing group of independents, the industry is meeting the specific needs of a wide consumer base, serving shoppers looking for products that are clean beauty, gender-neutral, and Black-owned, among other attributes.
This level of personalization has contributed to the creation of more premium products in the category, and it’s a story that manufacturers of all sizes must consider telling on packaging. In fact, NielsenIQ studied the hair wash category and saw the “premium” and “super-premium” segments of products in the category helped drive most of its astounding growth—up $879 million in two years. Packaging that evokes a premium look and feel is what could catch shoppers’ attention, as they aim to treat themselves through beauty products.
A premium and personalized touch on products is important for all brands, but independent brands appear to be leading the charge, driving overall category growth and carving out unique spaces in the areas they serve. And the numbers are big among some independents.
But, for independents and major brands to continue to reach a customer base with unique needs, they will want to do so with a focus on omnichannel shopping needs. Take that hair care category, while overall sales remained the main driver of the category in 2021, online sales doubled compared to two years prior and accounted for 83% of the category’s growth. Shoppers are clearly comfortable buying and discovering products online just as they are interacting with packaging, testers, and consultants in-store.
For packaging, as health and beauty grows among omnichannel shoppers, it is wise for companies to keep in mind how packages are promoted online and built for delivery. Online storefronts will need to play up packaging and deliver messaging that speaks to a diverse shopper base. On the physical store shelf, packaging could also become a battleground to stand out on-shelf among diverse beauty shoppers as the market evolves.
Consumers across these groups are also shifting their focus to embrace products that are clean, green and doing their part to protect the environment through sustainable efforts. Consumer online searches for “plastic-free” beauty products grew +86% in the past six months vs the same time frame two years prior. We also see continued growth among beauty products that are in recyclable and refillable packages as well as products that don’t test on animals.
How companies effectively use packaging within an omnichannel strategy will play a role in how they shine within this fragmented and crowded category. It’s a category that’s truly connected to its shopper base and listens to it.
This level of personalization has contributed to the creation of more premium products in the category, and it’s a story that manufacturers of all sizes must consider telling on packaging. In fact, NielsenIQ studied the hair wash category and saw the “premium” and “super-premium” segments of products in the category helped drive most of its astounding growth—up $879 million in two years. Packaging that evokes a premium look and feel is what could catch shoppers’ attention, as they aim to treat themselves through beauty products.
A premium and personalized touch on products is important for all brands, but independent brands appear to be leading the charge, driving overall category growth and carving out unique spaces in the areas they serve. And the numbers are big among some independents.
But, for independents and major brands to continue to reach a customer base with unique needs, they will want to do so with a focus on omnichannel shopping needs. Take that hair care category, while overall sales remained the main driver of the category in 2021, online sales doubled compared to two years prior and accounted for 83% of the category’s growth. Shoppers are clearly comfortable buying and discovering products online just as they are interacting with packaging, testers, and consultants in-store.
For packaging, as health and beauty grows among omnichannel shoppers, it is wise for companies to keep in mind how packages are promoted online and built for delivery. Online storefronts will need to play up packaging and deliver messaging that speaks to a diverse shopper base. On the physical store shelf, packaging could also become a battleground to stand out on-shelf among diverse beauty shoppers as the market evolves.
Consumers across these groups are also shifting their focus to embrace products that are clean, green and doing their part to protect the environment through sustainable efforts. Consumer online searches for “plastic-free” beauty products grew +86% in the past six months vs the same time frame two years prior. We also see continued growth among beauty products that are in recyclable and refillable packages as well as products that don’t test on animals.
How companies effectively use packaging within an omnichannel strategy will play a role in how they shine within this fragmented and crowded category. It’s a category that’s truly connected to its shopper base and listens to it.
