The Impact of Demographic Shifts on the Future of Beauty and Personal Care (Part 1)

January 2025

The population is becoming older, but at different paces around the world. With larger cohorts entering older adulthood, beauty brands are following individuals for longer periods of time. Addressing the transformations and evolving needs that come with age will be a critical priority for beauty and personal care players, since all aspects of beauty consumption (eg product benefits, packaging sizes, category demand, etc) will be impacted by population growth, ageing, and births and fertility.

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Key findings

Adapting now to ageing concerns will give beauty companies a head start in a world with more mature consumers

The population is becoming older, but at different paces around the world. With larger cohorts entering older adulthood, beauty brands are following individuals for longer periods of time. Addressing the transformations and evolving needs that come with age has become a critical priority for beauty and personal care players, since all aspects of beauty and personal care consumption (eg product benefits, packaging sizes, category demand, etc) will be impacted by demographic changes.

Beauty brands must rethink their portfolios and positioning amid shrinking households and fewer children

Single person households are the fastest growing household type globally and in every region. This trend reflects broader social changes brought about by urbanisation, delayed marriage, and declining birth and fertility rates. The impact on beauty can range from greater demand for smaller pack sizes, lower demand for baby and child-specific products, and even to a pivot from beauty brands to pet care offerings. Fewer consumers does not mean less demand - it is about catering to a more discerning audience with elevated expectations.

Beauty brands with a deep understanding of their target generation will successfully build loyalty

Millennials make up the largest cohort in the biggest beauty markets, but Generations Alpha and Z are projected to account for the bulk of the population in the fastest-growing beauty markets. To attract Gen Alpha, beauty brands adultify categories and focus on fun, while Gen Z is looking for gentle formulas and preventative benefits. Millennials seek out preventative solutions and clinical approaches while Gen X is looking for solutions-orientated beauty products, efficacy and age-positivity.

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Key findings
K ey population and demographic shifts impacting future beauty consumption
All aspects of beauty and personal care consumption impacted by demographic changes
The population is becoming older, but at different paces around the world
With larger cohorts entering older adulthood, brands follow individuals for longer
Key ageing demographic turning points in top three beauty and personal care markets
Purchasing power fluctuates by country, but at world level, older generations rank highest
Despite higher purchasing power, Baby Boomers purchase beauty least frequently
Across generations and countries, value for money, quality and suitability are key factors
Domohorn : Winning Japanese Baby Boomers through direct marketing
Adapting now to ageing concerns will give head start in world with more mature consumers
Single person households are the fastest growing household globally and in every region
Higher fertility rates not a guarantee of growth for baby and child-specific products…
…but rising age of mother at childbirth contributes to premiumisation and elevated offerings
Mustela: Navigating the quantity-quality trade-off in baby and child-specific products
Shrinking households to impact pack sizes, genderless positioning and private label
Beauty players pivot to adjacent segments such as pet care grooming, shampoo and perfume
Households maintain active beauty routines, especially those with children and other adults
Prioritise premiumisation , multifunctionality and gender-neutral amid shrinking households
Generations Alpha and Z will account for the bulk of fastest-growing beauty markets
The line between generations becomes increasingly blurred
To attract Gen Alpha, beauty brands adultify categories and focus on fun
Digitally-native Gen Z is value-driven and price-sensitive
To attract Generation Z, beauty brands focus on gentle formulas and prevention
Millennials are developing more extensive hair care routines, compared to previous year
Millennials seek out preventative solutions and clinical approaches
To reach Gen X , beauty brands need to balance between digital and traditional info sources
Gen X is looking for solutions-orientated beauty products, efficacy and age-positivity
From Ingredient-Led to Medicalization with the Epidemiological and Silver Economy Shifts
Brands with a deep understanding of their target generation will successfully build loyalty
Recommendations/Opportunities for growth
Evolution of demographic dynamics and the beauty and personal care industry
Questions we are asking

Beauty and Personal Care

This is the aggregation of baby and child-specific products, bath & shower, colour cosmetics, deodorants, depilatories, fragrances, hair care, men's grooming, oral care, skin care and sun care. Black market sales and travel retail are excluded.

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