NEWS > 05 May 2022

Health, Sustainability and E-commerce Drive Beauty Packaging Innovation

The beauty packaging industry is resilient. Despite the pandemic, sales increased by 3% from 2020 to 2021. Toiletry categories remain the largest contributors to packaging volumes globally, led by everyday hygiene products, such as bar soap, shampoo and toothpaste. To meet the needs of new consumer routines, shopping habits and preferences, beauty brands are changing their packaging design in fundamental ways and prioritising sustainable and digital investments.

Health, Sustainability and E-commerce Drive Beauty Packaging Innovation

Focus on health, hygiene and wellbeing

The pandemic heightened focus on health, wellbeing and hygiene. While product claims, such as holistic, clean and natural, still resonate with consumers, consumers’ focus is shifting towards the basic principles of health and being free of disease, with beauty consumers embracing self-care and adopting healthier lifestyles with the home becoming their main wellness hub.The demand for more efficient products with clear benefits will increase with ingredient safety and transparency being paramount.

Demand for sustainable packaging

According to Euromonitor’s Voice of the Consumer: Lifestyles Survey, 67% of consumers tried to have a positive impact on the environment through their everyday actions in 2021. Similarly, 46% of global consumers used sustainable packaging like refillable, recyclable, biodegradable or compostable in 2021. The beauty industry has been focusing on sustainability for a long time. But, the pandemic put social and environmental issues in the spotlight, leading consumers to opt for brands that can deliver positive change. Brand owners and packaging manufacturers must accelerate eco-friendly innovations to reduce plastic and water waste. Companies will also be under scrutiny to honour any commitments made to build a more sustainable and ethical future.

The shift towards e-commerce

The beauty industry still heavily relies on store-based sales. But, e-commerce gained momentum during the pandemic, driving beauty shoppers online. In 2020, 16% of global beauty value sales were made online, posting an increase of four percentage points in comparison to the previous year. And online shopping is predicted to grow faster in the years to come. Euromonitor’s Voice of the Industry 2021 survey also shows that beauty companies consider that consumers changing their online shopping and spending behaviour as a result of the pandemic will be a permanent change. Brands that can create a seamless digital solution that matches the in-person experience will drive customer loyalty.

Evolving wellness priorities requires beauty companies to adjust their product and packaging offer to consumers’ new needs while ensuring trust, safety and transparency. And as technology develops, innovation is expected to focus on circular models as well as sustainable and transparent supply chains. Meanwhile, digitalisation and the rise of e-commerce will impact the evolution of the packaging role and its design requirements. Establishing a strong digital presence will set beauty companies apart from competitors.

Author: Mylan Nguyen, Consultant at Euromonitor International

Source: Euromonitor International

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