Top 3 Emerging Trends Impacting the Global Facial Serum Market from 2016-2020: Technavio

LONDON–(BUSINESS WIRE)–#Cosmetics–Technavio’s latest report on the global
facial serum market
provides an analysis on the most
important trends expected to impact the market outlook from 2016-2020. Technavio
defines an emerging trend as a factor that has the potential to
significantly impact the market and contribute to its growth or decline.

According to Brijesh Kumar Choubey, a lead analyst at Technavio for
research on cosmetics
and toiletry
, “The online channel will play a vital role
in market growth over the coming years, allowing vendors to gain
increased visibility. Manufacturers are predominantly expanding their
online presence as one of the most discussed subjects online as well as
one of the top three Google search topics is beauty

L’Oréal has recently witnessed the importance of the online
channel in fueling growth. When it expanded its online operations in
China in 2015, there was a 20% sales contribution from the online
channel. Customers find this retail channel convenient and time-saving;
they can also get product reviews and feedback easily from previous

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The top three emerging trends driving the global
facial serum market
according to Technavio consumer
and retail
research analysts are:

  • Increasing use of natural and organic ingredients
  • Packaging innovations
  • Leveraging online channel and in-store digital initiatives

Increasing use of natural and organic ingredients

The increased focus on health
and wellness
across the globe has also left its impression on
the beauty
and personal care
industry. Natural and organic products
are emerging as important product segments in the market as consumers
consider these products safer than regular products, which may contain
hydrofluorocarbons, formaldehyde, fragrances, and micro-particles of
other ingredients. Recognizing the growing trend, manufacturers are
developing natural and organic
cosmetics products
to cater to the growing number of consumers
who are avoiding products with synthetic components.

For instance, some facial serums enriched with natural ingredients
include Vitamin C Skin Boost Instant Smoother, Vitamin E Overnight
Serum-In-Oil, Vitamin E Intense Moisture Serum, Nutriganics Drops of
Youth, Aloe Protective Serum, Nutriganics Smoothing Serum, Drops of
Youth Eye Concentrate, and For Men Maca Root Eye Rescue Serum from
L’Oréal under its The Body Shop brand.

Packaging innovations

The packaging of products plays a two-fold role of safeguarding
the content and as a marketing tool to make the products stand out on a
store shelf and allure consumers to choose the product
,” asserts

Some of the serums launched in 2015 that had innovative packaging were
the dual-phase serum for Clarins Double Serum and IOMA’s device
for measuring hydration in the skin. The emergence of oil-based
cosmetics is leading to innovations in packaging that enable deep
formulations to be held and dispensed in a more effective manner. An
example of such an innovation is the Serumony pack, a luxury serum
dropper in the form of an airless pen, launched by French supplier Aptar
in 2013.

There is also a growth in demand for dropper bottles for serums. To that
end, Skin Inc. markets its serums in dropper bottles. These serums are
packaged in clear dropper bottles that display the colorful, active
ingredients. There is also increased usage of biodegradable plastics
in cosmetics packaging as companies are trying to increase their
sustainability efforts and develop more injection type cases or packs.

Leveraging online channel and in-store digital initiatives

Considering factors such as convenience and easy on-the-go shopping
experience, consumers are now increasingly purchasing beauty products
online. To fulfill consumers’ requirement and meet their expectations,
there has been an increase in the number of beauty manufacturers
embracing the online platform and adopting an omni-channel strategy.

For example, L’Oréal’s L’Oréal Paris and The Body Shop; LVMH’s Sephora;
Chanel; and Henkel’s Schwarzkopf Professionals have online presence. The
online platform is providing significant growth opportunity for the
beauty care product manufacturers. In 2015, L’Oréal’s online sales grew
by 37.9% compared to 2014, accounted for 8.2% of the company’s
consolidated sales, and contributed revenue of USD .44 billion.

Retailers are using in-store virtual reality technology to add to the
shopping experience of consumers. Using this technology, customers can
see and experience how they will look after applying a beauty product.
An example of a brand that uses the online channel and undertakes
in-store digital initiatives to effectively engage consumers is Sephora,
the beauty retail brand from LVMH. In 2015, Sephora opened its first
smart store, Sephora Flash, in Paris.

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