Post-pandemic market shifts to health-friendly products

CEBU, Philippines —  While the beauty and personal care sectors continue to post good performance during pandemic, market’s preference has shifted to health-friendly products.

Unlike in the past that instant fix is important more than checking the mixtures, post pandemic consumers are now conscious of the ingredients being put in any beauty and personal care product, a report from Kantar revealed.

The London-based market research company uncovered that the COVID-19 pandemic has transformed the beauty and personal care industry and changed consumer behaviors.

Consequently, companies and manufacturers are urged to adapt “if they are to grow post- pandemic.”

Clean beauty has also risen in importance, with brands expected to be safe and environmentally responsible.

Complex ingredients are falling out of favor, as consumers lean toward natural, gentle and vegan, for example.

In China, products that claim “repair and recovery” qualities are seen more and more frequently.

The market research specialist said that in Asia, the beauty industry has rebounded relatively quickly following the height of the pandemic, but with different recovery rates for different categories.

According to Kantar, categories that are growing and actually doing better than before the pandemic are in the hygiene sector, including body wash, hand wash and sanitizer.

Necessities, including skincare and haircare, which endured a steep fall, are now rebounding quickly.

Discretionary sectors are taking longer to bounce back, particularly makeup, which continues to struggle.

The study also found that consumers are thinking beyond “skin deep” amid increased concerns around health and safety. They now expect beauty brands to help them feel and live better, not just look better.

“Priorities have shifted from fixing issues—such as erasing wrinkles—to building a strong foundation,” said the report.

Also, consumers want personal care products to be highly effective and more sophisticated in function.

Derma-care products have ascended, and the trend is spilling over from skincare into body care and makeup.

The leading country for derma is South Korea, with 56 percent penetration.

Moreover, e-commerce is now a part of daily life.

“Consumers are not expected to move away from online channels now they’re able to visit stores again, as they’ve ‘tasted’ advantages such as convenience, greater accessibility and lower prices,” said Kantar.

However, offline channels remain important. In Thailand for instance, offline traffic is still 19 times higher than online traffic and this channel is recovering, albeit slowly, the report found.

And with the pandemic hitting incomes hard, most Asian consumers are asking maximum value for their spend, while still making choices based on benefits.

“Whereas premium beauty was on the rise before coronavirus, mass and ‘masstige’ brands are now growing their market share. Their appeal lies in offering an exciting unique proposition, building a distinct area of expertise, or matching the benefits offered by premium products at a more accessible price,” said the report.

Demand for luxury has remained strong in some markets, despite increased price sensitivity, due to the fact that the highest income consumers have been least affected by COVID-19.

Kantar said that to remain competitive, beauty brands must capture new consumer expectations and behaviors, and respond to the ways in which their markets have evolved.

In particular, they should review their product portfolio and innovation to embrace a wider perspective that meets consumer demands for safety, health and being “green.”

Manufacturers are also called to provide value-seekers with a to buy, such as improving efficacy and functions, or using new technology.

Another suggestion is to adapt communications with emphasis on health benefits, active ingredients or scientific or medical credentials.