Small Cosmetics Brands Make Over the Beauty Market by Targeting Millennials

Part of their pitch: They focus on organic ingredients and customized products

A blog written by: Lam Huynh

The billion-dollar worth cosmetics industry has been increasing it value at an astronomical rate within the past and upcoming years. It share stake has increased from $532.43 billion in 2017 up to $805.61 in 2023, almost $300 billion in just 6 years. More significantly, small independent brands are defnitely growing stronger comparing to big prestige brands. In between 2010 to 2015, the market share of Niche, an independent brand, has increase up to 25% from its initial 20%. Within the same period of time, ten of the most prestige brands had their shares droppped from 46% to 40%. Smaller independent brands are slowly taking over the beauty industry, and big investors are trying to get their hands onto those companies by buying shares from them. 

One of the reason why indie brands are growing so rapidly is because most of their targeted consumers are millenials who seek out for the best type of ingredients in their beauty products. Often smaller companies does offer fresher ingredients within the products they put out to the market. For example, True Botanials' products are guaranteed to contain no harmful chemicals by taking a further step by having its products certified as Made Safe. Those companies are largely relying on social media and its influencers to reach out to consumers who are looking at recommendations for better products.

Indie brands have been some of the toughest competitors for bigger brands within the more recent years. But this could be the moment when larger beauty corporations like Loreal, Esteed Lauder, Maybelline, etc... to start putting clearner ingredients into their products and promote awareness against harmful chemicals that are being put into their products.

Source: https://www.wsj.com/articles/small-cosmetics-brands-make-over-the-beauty-market-by-targeting-millennials-11556296365