Cosmetics and Perfumery: Everything You Need to Know

The World of Cosmetics and Perfumery

A Rapidly Expanding Sector

In 2023, the ten largest global cosmetics companies generated impressive revenues, with L’Oréal leading at $40 billion, followed by Unilever at $25 billion and Estée Lauder at $16 billion. The global beauty market is estimated to be worth over $270 billion.

Additionally, the global cosmetics and fragrance market is experiencing strong growth, averaging 8% per year. The market is evenly distributed across North America (29%), Europe (24%), and Asia (29%). The most dominant product category is skincare (40%), followed by haircare (21%), makeup (17%), fragrances (12%), and personal hygiene products (10%).

Furthermore, the beauty market is expected to grow by approximately 600 million new consumers from the middle and affluent classes worldwide, particularly in Asia and the Middle East.

Luxury, Innovation, and Expertise

Leading luxury houses, such as L’Oréal, invest heavily in research and development to introduce innovative products. For instance, at CES 2023, L’Oréal unveiled "Hapta", a technology designed to assist people with reduced mobility in applying lipstick, as well as "Brow Magic", an electronic applicator for eyebrow makeup.

These innovations demonstrate brands’ commitment to blending traditional expertise with cutting-edge technology to create products that meet evolving contemporary needs.

Trends Shaping the Industry

Several trends are currently influencing the cosmetics and perfumery sector. Firstly, natural and organic cosmetics reflect consumers' desire to choose products with natural ingredients, free from petrochemical substances, embodying a quest for authenticity and transparency. The "Slow Cosmétique" movement also highlights a shift toward more ecological and responsible consumption, promoting simple, environmentally friendly formulations.

Lastly, the integration of technologies such as augmented reality and artificial intelligence enables brands to offer personalised experiences, strengthening customer engagement.

Essential Skills for Success

Mastering Formulation and Creation Techniques

A deep understanding of ingredients, chemical processes, and extraction techniques is essential. The foundation of any cosmetic or fragrance product lies in its formulation. Professionals must be able to develop innovative products while ensuring compliance with safety and quality standards. Specialised training programmes, such as the Bac Pro in Aesthetics, Cosmetics, and Perfumery, provide a solid foundation in these areas.

Understanding Marketing and Distribution Challenges

Beyond product creation, the success of a cosmetic or fragrance depends on its commercialisation. Understanding market trends, consumer behaviour, and distribution strategies is essential. Professionals must be able to position their products effectively, develop successful marketing campaigns, and select the most suitable distribution channels.

Programmes such as the Bachelor in Commercial Management for Cosmetics and Perfumery train students to master strategic commercial skills and brand management techniques.

The Growing Impact of Digital

Brands continue to invest in innovative technologies to offer personalised and immersive experiences to consumers. For example, at the Consumer Electronics Show 2024, L’Oréal introduced "Beauty Genius", an AI-based beauty advice application.

Additionally, nanotechnology, including titanium dioxide and zinc oxide, is widely used in cosmetic formulations to enhance product efficiency. Professionals must therefore be comfortable with digital tools and understand their impact on marketing strategies and customer relationships.

For those who wish to deepen their skills and prepare for the challenges of this evolving industry, the MBA Luxe Online offered by Sup de Luxe provides a comprehensive training programme. This course enables students to master essential digital skills, understand new market trends, and become leaders in a constantly transforming industry.

Challenges and opportunities in the market

The rise of clean beauty and sustainability

Consumers are increasingly concerned about the composition of the products they use and their environmental impact. This awareness has led to a growing demand for natural, organic, and eco-friendly beauty products.

Leading brands have seized this opportunity by developing certified organic product lines and adopting sustainable practices. For example, the L’Occitane Group has acquired brands such as Melvita and Erborian to strengthen its presence in the natural cosmetics market. Furthermore, eco-design initiatives, such as the use of recycled and recyclable packaging, are being implemented to meet consumers' expectations for sustainability.

The impact of new technologies on the industry

Technological advances are profoundly transforming the cosmetics industry. The integration of augmented reality, artificial intelligence, and nanotechnology allows brands to innovate and offer personalised products and services. Perfumery uses AI to analyse consumer preferences and create bespoke fragrances. The cosmetics industry utilises nanomaterials, such as titanium dioxide and zinc oxide, to enhance product effectiveness. It also employs microencapsulation, a process that encases active ingredients in microspheres, revolutionising cosmetic formulations. Through this method, active ingredients such as vitamins, essential oils, and moisturising agents are better protected and released progressively onto the skin, ensuring prolonged effectiveness. In perfumery, microencapsulation is used to extend the longevity of fragrances by gradually releasing olfactory notes throughout the day.

Reinventing the customer experience in the digital age

Digitalisation has significantly changed the way consumers interact with cosmetics and perfumery brands. Companies must now provide immersive and personalised online experiences to attract and retain their clientele.

Live shopping, which combines live streaming and e-commerce, has become a major trend, allowing consumers to discover products in real time and interact directly with brands. Moreover, social media plays a crucial role in promoting beauty products, with influencers sharing their routines and recommendations, thereby influencing their audience's purchasing decisions.

Brands are also investing in mobile applications offering personalised beauty advice, skin diagnostics, and virtual makeup trials, enhancing the customer experience and strengthening engagement.

With a nationwide presence, the perfumery and cosmetics industry encompasses a wide variety of professions, from sourcing raw materials to commercialisation. The digitalisation of sales and the rise of organic beauty are driving innovation, continuously revitalising this dynamic market.