“Personalization isn’t just a buzzword; it’s a response to how consumer expectations have shifted in recent years,” according to an article on the Mintel website. Mintel, a global data and consulting company, reports that 62% of Beauty and Personal Care (BPC) consumers are interested in hyper-personalized products, and 28% are willing to pay more for them. It says, “Many consumers are seeking products tailored to specific beauty goals like reducing fine lines, combating dryness, or achieving a flawless look.”
Mintel says personalization trends are rapidly infiltrating all sectors of the BPC industry due to increased consumer demand for curated products and experiences. This demand is “pushing brands to rethink skincare, haircare, and cosmetics.”
Personalization and Hyper-Personalization are Not the Same
Personalized products have been around the BPC industry for years. There are products made for oily, dry, sensitive, and normal skin. And haircare for people who dye their hair, have dandruff, and have curly hair. Haircare products specifically marketed to Black women have been available for many years.
Hyper-personalization goes beyond those basics, “leveraging advanced technology to deliver tailored solutions, using consumer-provided data from surveys or consultations to create customized beauty products.”
This is an excellent opportunity for entrepreneurs to jump into the BPC space. Consumers want products that are specifically targeted to their skin type, hair needs, and match their skin tone.
Consider these successful entrepreneurs:
Corporate industry pros turned entrepreneurs launched Prose Beauty in the U.S. in 2018 with the intent to “develop the best formula and refine the most effective personalized experience possible.” The company achieved profitability two years ago and reported revenues of about $160 million last year. Prose took its winning formula and entered the skincare business in 2023.
IL MAKIAGE was also launched in 2018 by sibling entrepreneurs Oran Holtzman and Shiran Holtzman-Erel, offering a line of foundations and concealers so “inclusive” nearly every buyer could find (based on the company’s detailed skin tone quiz) the perfect match for their skin. The company told WWD that Il Makiage passed the significant $500 million in sales milestone last year (2024).
Lisa Price, considered a pioneer of the Natural Hair Care Renaissance, started her haircare company Carol’s Daughter in 1993, creating products in her Brooklyn kitchen. Price recently repurchased her company from L’Oréal.
Power to the People
Mintel advises collaborating with professionals, such as dermatologists and scientists, to help gain consumer trust, as well as featuring professional endorsements and safety certifications, especially if your company promotes the use of safe, anti-allergic ingredients.
Personalization, says Mintel, “empowers consumers, giving them control over their beauty routines while fostering brand loyalty. It also makes them feel acknowledged as their unique needs are met.”
Personalization Trends Supported by Technological Advancement
According to Mintel, “Without advanced technology, many personalization trends would not be possible.” In particular, companies have relied on AI and Augmented Reality (AR) “to meet consumers’ demand for tailored products and services.”
You can do that too, albeit on a smaller scale. Use AI to analyze data to “offer precise recommendations, enhance formulations, and forecast trends. And many beauty companies offer AR tools so consumers can digitally and virtually “try on” their makeup.
Market Opportunities in Beauty Personalization Trends
Mintel concludes that for many consumers today, customized beauty products aren’t just nice-to-have, but essential to their skin- and hair-care routines. It says, businesses failing “to integrate beauty personalization trends into their values, products, and services risk falling behind in an industry centered on uniqueness and inclusivity.”
Follow-up: I’m going to post this every week until the situation is resolved, because I’m still “mad as hell.” And I’m still asking you to #StandWithSCORE.
SCORE is too valuable to be cut from the federal budget, so please contact your congressional representatives and senators. Tell them to stop talking about how “important small businesses are to our national economy” and do something about saving an organization that helps millions of small business owners every year.
Or just fill out this form (it takes less than 2 minutes), which will be sent to your congressional representative’s offices. And message Congress on social media. Tell them to save the people who save small businesses—for free. Include @scorementors in your post. And the hashtag #StandwithSCORE.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and on LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy Leandro Crespi for Unsplash+
