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Beauty is booming, but not in the way it used to. Today’s consumers demand more than aesthetics—they want products that align with their values: clean, cruelty-free, and sustainable. For brands, this means rethinking formulations, packaging, and messaging to stay relevant in a market where transparency is the ultimate luxury.
Beauty Market Momentum
Canadian beauty sales reached $10.1 billion, growing +8.3% YoY, with global beauty up +10%. Top growth categories include Body Wash, Fragrances, and Moisturizers. Despite economic uncertainty, beauty remains resilient, driven by innovation and consumer desire for self-care.
Clean & Conscious Attributes Are Non-Negotiable
Total beauty grew +7.1%, with cosmetics and hair care leading. Attributes like cruelty-free, vegan, sulfate-free, and sustainable packaging are growing faster than the overall category. Gen Z and Millennials over-index on clean beauty preferences, prioritizing ethical and eco-friendly choices.
Generational & Channel Shifts
Under 35s represent 22% of beauty sales but only 14% of total CPG, spending $1.7B annually. They are also driving online growth—beauty has a 24.1% online share, compared to 10.4% for FMCG overall. Social platforms like TikTok and Instagram amplify this trend, making influencer partnerships and digital storytelling critical.
Innovation Is the Growth Engine
New items account for 19% of total beauty dollar sales, and innovation drives category expansion. Smaller brands are fueling growth, contributing 58% of dollar growth. This underscores the importance of agility and responsiveness to emerging trends.
Action Plan for Beauty Brands
- Prioritize Clean Formulations: Free from parabens, sulfates, and phthalates.
- Embrace Sustainability: Eco-friendly packaging and ethical sourcing are table stakes.
- Target Gen Z & Millennials: Leverage social commerce and influencer partnerships.
- Invest in Innovation: Launch new items aligned with clean and conscious trends.
Clean beauty isn’t a fad—it’s the future. Brands that embrace transparency, sustainability, and innovation will not only survive but thrive in this new era of conscious consumption.
