NOTE: the following excerpts are comments by Olivia Guinaugh, which are incorporated in  Mintel’s 2022 Executive Summary on Color Cosmetics.
 
The Color Cosmetic Market is expected to surpass skincare this year. New packaging componentry is meeting growing demands for sustainable solutions. Together they’re creating a robust environment for consumers who have been pent up during the pandemic—and now want to have fun!
 
After taking a hit in 2020 as a direct result of the COVID-19 pandemic, the color cosmetics market experienced skyrocketing sales growth from 2021-22. Specifically, the color cosmetics market is estimated to exceed $13.2 billion in 2022 retail sales, an increase of 16.4% from 2021.
 
Looking ahead, further growth can be driven by tapping into the emotive benefits of makeup and/or providing beauty experiences in virtual spaces, helping beauty brands to earn a spot in engaged BPC consumers’ makeup routines.
 
The removal of face covering mandates across the country, pent-up demand and return of in-person events all play a role in the market’s recovery. Still, when accounting for inflation, the market is expected to see slower sales growth, indicating that some consumers, particularly
those from lower-income groups, will trade down to less-expensive options.
 
Looking ahead, sales growth is expected to continue at a slow yet steady pace. While the normalcy of work-from-home lifestyles may prevent the market from seeing significant growth, retail sales are still expected to be higher than in pre-pandemic times. 

Top Takeaways

Utilize virtual experiences to pique engagement

Connecting with beauty consumers in virtual spaces will help brands not only better engage with key audiences but also make their brand image unique and stand out from the competition. Looking ahead, expect to see more brands elevate online shopping experiences by creating immersive and flexible virtual spaces designed to excite and entice consumers. Elevate color cosmetics’ association with fun: After two years of heightened stress and limited social interaction, consumers want excitement, leading some to seek products that entice emotions or provide a sensorial experience. Whether it’s reminding consumers of the joyful merits of makeup routines or incorporating unique/unexpected benefits into makeup products, there is a variety of ways for brands to incorporate an element of fun into makeup routines.

Utilize science to rebuild trust

Skepticism toward ingredients is strong in the BPC market, including the color cosmetics category. To build trust with consumers, move communication strategies away from language that could be perceived as fear mongering. Instead, be transparent with consumers and lead with science when offering proof of product efficacy and safety.
 
While some brands in other BPC categories, such as facial skincare, are already taking a science-driven approach to rebuild trust with consumers, Mintel’s GNPD shows that the color cosmetics
category is lagging in the number of products that call out the use of scientific terms within their product descriptions

Opportunities and Challenges

Target innovation to serve women’s need for convenience.
 

• Thanks to the widespread distribution of vaccines, mask mandates have been lifted across the country, and in-person events are resuming, allowing typical makeup behaviors to shift back into place. Specifically, 23% of women claim to be applying makeup more often compared to a year ago, and “leaving the house more frequently” is the top-cited reason why. More frequent usage of products leads to shorter purchase cycles, contributing to overall market growth.
• Still, as the U.S. continues to move through the recovery phase of today’s ongoing pandemic, busy routines, overbooked schedules and in-person commitments will resume, making it challenging for some women to dedicate extra time to their makeup routine.
• Beauty brands that take this into consideration and create convenient, easy-to-implement strategies, such as multiuse products (eg. one product designed to be used on face, eyes and lips) or hybrid makeup/skincare that cuts down on time while still maximizing skin health benefits will see success in the long term. 69% of women express interest in multifunctional makeup, underscoring market potential.

Trends to Watch

• From the pandemic to the conflict in Ukraine and the economic crisis, finding ways to lift one’s spirits has become increasingly important to today’s consumers. Given this, as well as the growing popularity of expressive makeup looks, Mintel expects to see more women gravitate toward makeup products and looks designed to enhance one’s mood, such as the “dopamine beauty” trend.
• Described as the antithesis of the “clean girl” aesthetic (ie, a no-makeup makeup look that focuses on neutral tones), dopamine beauty is all about bold, bright hues and experimenting with unconventional looks, aiming to boost moods and activate a physical release of dopamine