OVERVIEW


has accelerated ageing in the brains of Gen Z. This illustrates the depth of how much sustained and chronic stress can alter our anatomy and physiology – to a cellular level. And for Gen Z in particular, they’ve been in a critical developmental stage while experiencing this level of stress – so there are a lot of question marks about how this change will play out in the future and impact on skin and body health and function.”


Broader horizons


The focus on Gen Z by skin care brands has shaped wider market trends in everything from packaging design to sustainability. But as well as changing the industry, the influence that this demographic has on older consumers is a way for brands to grow their customer base (Trend 1).


Meanwhile, as much as beauty brands have moved towards greater inclusivity in their imagery and advertising, there remains a significant gap in skin care provision for melanin-rich skin, compounded by a decades-long lack of scientific study on darker skin tones. However, new entries are bringing progress to this space (Trend 4), while beauty retailer Superdrug has pledged to increase SPF testing on darker skin tones by 35%, in order to improve skin type inclusivity for customers. An increase in consumer education about the risks of skin cancer in darker skin and the need for sun protection has also started to pick up. Improving skin care education more generally among consumers will also be a key focus for brands, with Sam Murton, founder and CEO of Be For Innovation, believing that this will create some specific opportunities. “2023 will be a year that consumers want to learn more about the levels of ingredients they are using in their skin care routines, as there is now more awareness around the risks of high strength ingredients disrupting the skin care barrier.


“There is an opportunity for brands to provide a lot more education about appropriate levels for different ingredients as there is a lot of confusion around this after years of messaging around bigger always being better.” In 2023, consumers’ skin care routines may have fewer steps, but the products they do use will need to be one step ahead, at least


ACTION POINTS


Consumers are adopting more streamlined skin care regimes and are far better educated than ever before on the benefits of ingredients. They know where they want to invest their money. Janet Milner-Walker, founder and MD, Bespoke Advantage


Products with proven efficacy, such as dermocosmetic brands, are expected to remain popular owing to strong consumer trust – leading to a strong reluctance among consumers to remove them from their routines. Connor Spicer, Senior Research Beauty Analyst, Euromonitor International


SKIN CARE: THE KEY CHALLENGES


As inflation, the cost of living and energy crises continue to take their toll on the spending power of consumers, these issues will remain a key challenge for skin care brands too in 2023. “Notable price rises have been witnessed across both mass and premium categories owing to higher costs to raw ingredients, manufacturing and transport, and this has been a key contributor in consumers slimming down their skin care routines,” says Connor Spicer, Senior Research Beauty Analyst at Euromonitor International. And with further recent price increases from both


accessibly priced and premium brands, from The Ordinary to Dr. Dennis Gross, Euromonitor expects the ‘less is more’ approach to routines that is being seen will continue, with “consumers purchasing fewer products but with higher efficacy or dual-use,” says Spicer. A survey conducted by UpCircle Beauty found that


one in four people have decreased their spending, or stopped purchasing skin care products entirely since the start of the cost of living crisis. Trading down is an appealing option for consumers, with own brand ranges and dupes rising in popularity. Janet Milner-Walker, founder and MD at Bespoke Advantage, says: “Not only is it impacting consumers’ decisions on what and whether to purchase, the cost of living crisis also has a direct impact on a brand’s decision on whether to launch a new product. With increases in the cost of raw materials, longer lead times, energy and freight costs and staff wages, brands need to consider the impact this has on their cost of goods, versus the retail prices they charge. Will the product be commercially viable to launch?” These pressures will make it a particularly challenging


year ahead for many smaller brands too. As well as having more barriers to raising finance, Sam Murton, founder and CEO of Be for Innovation, says: “Rather than focusing on huge growth strategies and investments, many will be looking to how they retain, convert, and build loyalty with their existing customer base e.g., with community marketing investment. This is something we’re experiencing ourselves with our own brand Clear Skin Days. More established brands are backed by investment which means they have the largest voices in the market. Viral indie products are becoming scarcer, as they can’t afford to compete on the same level – which means that community building is more essential than ever. As a small brand owner, I can attest to how challenging this is and to stay in the game, we have to test and learn with community and marketing in a different way to established brands.” Another key challenge for skin care players is the


impact of ‘skinification’ in other beauty categories, such as colour cosmetics. Spicer says, “The adoption of active ingredients within colour cosmetics products, particularly from established players, [could] cause further competition for skin care players. MAC Cosmetics, for example, introduced Hyper Real in January 2023, a high-performance skin care range designed to simultaneously improve skin and enhance make-up.”


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March 2023 cosmetics business 5


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