AI in beauty and cosmetics refers to the integration of artificial intelligence (AI) technologies within various aspects of the beauty industry, including product development, marketing, retail and customer experience.
The AI in beauty and cosmetics market consists of revenues earned by entities (organizations, sole traders and partnerships) that use AI technologies to create personalized product recommendations, improve marketing strategies, forecast demand, manage inventory, provide real-time customer support and develop innovative beauty products.
The global AI in beauty and cosmetics market was valued at $1,630.8 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 14.0%.
Growing Importance For Sustainable Personal Care Ingredients
The increased demand for sustainable personal care ingredients supported the growth of the AI in beauty and cosmetics market during the historic period. AI in beauty and cosmetics helps to formulate cosmetic goods, by evaluating large databases of components, attributes and interactions. By evaluating data about ingredient sourcing, manufacturing procedures and packaging, AI helps uncover more sustainable options and guarantees compliance with ethical standards, lowering the environmental impact of cosmetic products. In April 2021, according to a survey of nearly 1,800 participants across Great Britain, the USA, China, France, Brazil and Germany, conducted by Shell Group, a UK-based group of energy and petrochemical companies, at least 3 in 4 respondents in every country surveyed expressed substantial interest in bio-based (for example, soy or corn-based) personal care products. Additionally, a growing number of consumers are not just interested in sustainability but are willing to pay at least up to 10% more for more sustainable or natural products. Therefore, the growing importance of sustainable personal care ingredients supported the growth of the AI in beauty and cosmetics market.
Introducing AI-Powered Virtual Try-On Technologies To Revolutionize The Shopping Experience
Companies in the AI in beauty and cosmetics market are developing advanced solutions, such as AI-powered virtual try-on technologies, to gain a competitive edge in the market. AI-powered virtual try-on technologies use artificial intelligence algorithms to allow customers to virtually try on things, including cosmetics and beauty products. For instance, in December 2021, Nykaa, an India-based e-commerce company that sells beauty, wellness and fashion products, launched ModiFace, an AI-powered virtual try-on technology that will contribute to an improved beauty experience for cosmetics enthusiasts who purchase beauty products online. It provides security and hygiene in the post-pandemic world and its virtual try-on technology uses an innovative face tracker algorithm that recognizes lips, eyes, cheeks and hair and applies virtual cosmetics to provide a real-time, true-to-life view of the items.
The global AI in beauty and cosmetics market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 30.19% of the total market in 2022.
AI In Beauty And Cosmetics Global Market Report 2024 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global AI in beauty and cosmetics market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for AI in beauty and cosmetics? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The AI in beauty and cosmetics market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider AI in beauty and cosmetics market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by type, by distribution channel - retailers and by end-user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the AI in beauty and cosmetics market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis - Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by type, by distribution channel - retailers and by end-user in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies - Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking - Briefs on the financials comparison between major players in the market.
- Other Major And Innovative Companies - Details on the company profiles of other major and innovative companies in the market.
- Competitive Dashboard - Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions - Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for AI in beauty and cosmetics providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Type: Personalized Recommendation Tools; Performance Marketing Measurement Platforms; Demand Forecasting and Supply Chain Tools; Real-Time Customer Service Platforms; AI-Based Beauty Devices
- 2) By Distribution Channel - Retailers: Specialist Retail Stores; Supermarkets and Hypermarkets; Convenience Stores; Pharmacies and Drug Stores; Online Retail; Other Retailers
- 3) By End User: Skincare; Haircare; Make-Up; Fragrances; Other End-Users
- Companies Mentioned: Elizabeth Arden Inc; Beiersdorf AG; Proctor and Gamble Company; Sephora Inc; Shiseodo Co Ltd.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; AI in beauty and cosmetics indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.