How Innovation Will Drive Success for Cosmetics and Personal Care in 2024

Product personalisation will drive the innovation agenda

The next chapter of growth for the cosmetics and personal care category will see consumers connecting mental wellbeing and physical activity as part of a comprehensive approach to enhance beauty. Although this connected approach that prioritises self-care can positively impact health and appearance, it can also overwhelm consumers with more choices in an already cluttered market. Brands must create high quality products and streamline skincare routines to simplify purchase decisions – and technology can help. 

Technology is increasingly enabling cosmetics and personal care brands to dive deeper into a diagnostic approach that helps consumers better understand their skin health. As a result, brands can develop more personalised recommendations and interactive media experiences, for example, ones that allow consumers to virtually try new products.

Dermocosmetic brands are already creating virtual skin analysers which evaluate users’ overall skin condition and recommend treatments. In 2024, we will see more brands investing in advanced formulations, enhanced ingredients, and technologies to create products that can be tailored to suit individual needs. There will also be an emphasis on creating and promoting sustainable, Earth-friendly skincare products to attract environmentally conscious consumers.

Social platforms will become even more important for shaping brand perception 

Social media remains a highly effective marketing channel for the beauty industry as its pleasing visual nature aligns with the cosmetic industry's focus on aesthetics. Beauty brands can showcase their products through visually appealing posts, sharing informed content, and collaborating with influencers to amplify reach. In addition, establishing an engaged social media community creates brand advocates in people who deeply connect with brands to engage, share content and buy or recommend products.

However, advertisers cannot ignore the signs that trust in healthcare professionals is falling, and that misinformation is rife. As social media platforms become educational tools in dermatology, with much of the content coming from people with no formal medical or dermatological training, it is important for brands to protect themselves against misinformation that can damage trust among audiences looking for reliable sources of information. As such, aligning branding and social media activity, paid and organic, can strengthen consumer perception of the brand, a key consideration when making purchase decisions.

In 2024, we will see more brands using dermatologists and skinfluencers who support their products to build trust and transparency among consumers. We also anticipate a rise of virtual influencers, as these are not only good for marketing strategies, but they can also be great educators for employees as well. Brands will increasingly use them to help train skincare professionals thereby reducing the time and resources spent training.

Media strategies that will support growth in the cosmetics industry

Digital advertising continues to be the leading medium with a 58.8% share of global advertising spend in 2024. To effectively reach and engage diverse audiences, brands in the cosmetics and personal care category must invest in a balanced, refined approach combining fast-growing media channels with more established ones.

Brands that understand their audiences’ journeys can connect with consumers through media in a more effective way. By delivering the right content at the right time, brands are top of mind as consumers move towards a purchasing decision. Cosmetics and personal care advertisers should continuously test and measure the impact of targeting and creatives and optimise their ad spend based on performance.

In 2024, consumers will be empowered to make better-informed choices based on their deeper understanding of skin health and the efficacy of skin care products, and that will drive increased brand loyalty and trust. To make the most of their growing media investments, advertisers should adapt their ads based on audiences’ context. Success in the cosmetics and personal care category will be derived by captivating consumer attention, ultimately resulting in increased sales.

2024 will be a year of big media moments, from technological changes to major sports events and key elections. Download the latest dentsu Global Ad Spend Forecasts to better navigate this new media landscape and drive business growth for your brand.