The global beauty sector is expected to reach $580 billion in retail sales by 2027 according to the “State of Fashion Beauty” research by McKinsey and The Business of Fashion.
According to Nairametrics, this estimate is based on a global study that collects data on consumer shopping habits, market intelligence, and expert and executive industry insights.
The beauty industry is anticipated to continue to show its resiliency, as it has in recent years, in the face of obstacles brought on by consumer and economic difficulties.
According to McKinsey, the sector will experience 6% annual growth and reach retail sales of over $580 billion by 2027.
“How the industry achieves that number will depend on brands’ and retailers’ ability to navigate the dynamics that this edition of The State of Fashion explores: new geographic hotspots; the burgeoning luxury opportunity; the path for emerging brands to scale, and the complexities of the Gen-Z generation, etc.”
According to the report, successful beauty players will be those who understand their distinct value propositions and communities while consistently embracing quick innovation and product cycles.
People born between 1997 and 2010 make up Gen Z, which have a tremendous influence since they use social media to voice thoughts, influence older generations, and question traditional wisdom.
According to a McKinsey survey of worldwide consumers, three or more brands of skin, hair, and scent products are used by more than half of the respondents.
Additionally, almost 40% of customers said they were devoted to well-known brands, and 69% said they would be open to trying new items at least once every six months.
Understanding consumer preferences and habits, especially those of Gen Z, and embracing innovation will be essential for long-term success and growth as the beauty business continues to change.
