The Price of Beauty. Where is the Cosmetics Industry Heading?

Just as in the times of great civilisations, all girls and women, as well as our parents and grandparents, cared for their skin and appearance. Nowadays, this activity has become even more significant for people – including men. Our Founding Partner, Krzysztof Najder, discussed the future of the cosmetics industry with journalists from the Hungarian business portal Termékmix.

To get straight to the point – how do you see the current situation in the cosmetics industry?

Currently, we can talk about five main trends that, in my opinion, dominate the cosmetics industry. The first is the so-called “Natural Looks”, which prioritises the individual’s natural appearance, enhancing it. This is often achieved using natural, plant-based, or organic but relatively simple products.

The second trend is “Uniqueness”, which follows the line of emphasising individual characteristics, especially if they have something to do with fashion, such as unique habits or hairstyles. We can also discuss personalised body care cosmetics, produced in small quantities and tailored to individual needs.

This is combined with more luxurious products, which can be custom-made individually for a specific client, including personalised packaging.

The third trend is “Technology”. Thanks to innovations and rapid development, this is becoming increasingly common, frequently reaching for aesthetics in its achievement.

Finally, there is the trend of “Luxury”, characterised by high expression and exclusivity. Here we are talking about rare and expensive base ingredients – whether natural or derived from modern technologies.

Many people believe the cosmetics industry is gaining more significance and, due to the variety of product categories nowadays, almost everyone uses some kind of cosmetics. Is that true?

Yes, today almost everyone uses some kind of cosmetic, regardless of gender and age. This is, of course, a market-driven process – on one hand, a wide range of products attracts consumers.

On the other hand, changing consumer habits, expectations, and value systems, meaning there are different cultural backgrounds in the expansion of products. Moreover, we increasingly see men also using various cosmetic products [and not just the standard soap or shower gel – editor’s note], which was not so common in the past.

There are more and more older people in Europe. Does this affect the cosmetics industry?

Yes – definitely. The fact that there are more older people in Europe has a critical impact on changes in the cosmetics industry.

For products aimed at the so-called silvers, effectiveness, and functionality should be emphasised because indicating the age group on the packaging can deter and discourage many.

Do women’s cosmetics still dominate the market? What is the situation with men’s cosmetics?

Yes, women’s beauty products still lead the market, but men’s cosmetics are also rapidly developing – and bringing significant sales growth. This is the result of changing consumer habits and the fact that more and more men care about their health and appearance.

Today, you can notice that many shops offer various lines of cosmetics for men, not just for women. Take, for example, the Dutch brand “Scotch and Soda”, whose stores offer various products for both women and men.

Answering the second question – the value of cosmetics bought by male consumers will increase in the coming years. But going back to what I mentioned – this does not mean that these products or even brands will be labelled as men’s products or men’s brands.

This direction is confirmed, for example, by research from Interbrand, which shows that the value of the largest, unequivocally “male brands” of cosmetics, such as Gillette, is decreasing because it is difficult for them to communicate credibly as producers of unisex products.

I once read that for people, getting rid of wrinkles is more important than environmental protection. What do you think about that?

The consumption of cosmetics is based on contradictions. On one hand, we want products to make us look younger and more beautiful – it is not without reason that it is called the “beauty industry”.

On the other hand, we want to look natural, pretending to care about the environment. In some industries, these contradictions are less mutually exclusive – for example, in the food industry. Organic and bio food could be healthy and tasty like the traditional dishes of our ancestors.

Basic human needs in this area can be met in many ways, even in the case of vegetarians and vegans. The use of plant-based protein substitutes is, of course, a challenge, but it is a problem that can be solved.

In the cosmetics industry, however, the situation is entirely different. If we want beauty care products to be truly effective, unfortunately, they will not be environmentally friendly in any way.

To achieve the desired effect, they will be tested on animals and contain various ingredients, such as stem cells. Their production will certainly involve various methods of regenerative medicine and technological development.

Although they improve the “natural” appearance – alleviating signs of ageing and disease – they will not be environmentally friendly.

When we talk about these cosmetic products, we also have a tendency to “cheat”: we might think we are using natural substances or methods to improve our appearance. And that we never use invasive methods such as plastic surgeries, fillers, botox, etc.

It is easy to say that our radiant skin is a gift of nature and exceptional genetics, rather than the result of regular cosmetic treatments.

In the cosmetics industry, ecological and close-to-nature issues may relate more to packaging than the content of the products themselves. In the cosmetics industry, we will sacrifice on the altar of effectiveness, ignoring doubts related to the possibilities of developing technology and science or turning a blind eye to potential cruelty, animal testing, or rare, biologically non-biodegradable substances.

We will use cosmetics from countries where regulations are often less transparent and raise ethical concerns because our face is more important to us than the Earth we live on.

Apart from environmental aspects, there is another value that appears to be increasingly important to consumers – social responsibility (sustainability). Are these issues essential to consumers, or only to a narrow group that is open to them?

I believe that social responsibility is primarily important for the brand’s image. This is especially true in the cosmetics industry, where the use of products occurs in private, out of the public eye, and is not as socially visible as, for example, wearing branded clothing, which immediately communicates the wearer’s values.

Original version of the interview in Hungarian: