Beauty consumers prefer ingredients over brands
What: Beauty consumers are shopping for star ingredients rather than by product or brand names.
Why is it important: As brand names have served as indicators of quality, consumers are educating themselves on skincare ingredients and feel less of a need to buy specific brands.
The internet has transformed the shopping and research experience as consumers can quickly become experts on skincare ingredients, their skin type, and particular needs.
Some beauty brands and retailers are now helping their clients to filter by ingredients because research through search engines has become a vital part of the shopping journey. For instance, Net-a-Porter and Glow Recipe both launched an ingredients tab on their e-commerce pages in 2021.
As power brands continue to retain a high level of trust and customer loyalty, shoppers on Net-a-Porter are now searching for ingredients such as retinol, hyaluronic acid, niacinamide and vitamin C. They also noted that salicylic acid overtook niacinamide and hyaluronic acid for the first time, correlating with increased consumer concern for so-called “maskne.”
TikTok is also driving the rapid pace of trend change for the power that it has on beauty trends is undeniable. A single viral post on TikTok can translate into millions of views and thousands of followers. Marketing teams at beauty giants such as Estée Lauder now watch TikTok closely, to respond with appropriate ad strategies. For example, THG’s haircare brand Grow Gorgeous went viral on TikTok when a micro-influencer documented her hair growth, which taps into the science-backed haircare trend thanks to its use of niacinamide and hyaluronic acid, typically used in skincare.
The consumer enthusiasm for ingredients has paved the way for ingredient-led brands such as Deciem, acquired by the Estée Lauder Companies in 2021. Deciem, with its six brands: The Ordinary, Niod, Hylamide, the Chemistry Brand, Hif and Loopha, made about $460 million in revenue in the 12 months to the end of January 2021.
Beauty brands have developed their own formulas linked to star ingredients, but trust and authenticity remain paramount. Clinical trials should support marketing claims.
