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Decoding the North American beauty market with BeautyMatter and British Beauty Council

BeautyMatter and British Beauty Council, UK

UK – BeautyMatter and the British Beauty Council brought together industry experts and brand representatives for an event exploring the keys to success in the competitive and saturated North American beauty market.

Kelly Kovack, founder and CEO of BeautyMatter, kicked off with a data-driven overview of the market, which reportedly surpassed China in 2020, emerging as the world's largest beauty and personal care market, valued at more than £74.7bn ($93bn, €86.9bn). The surge is attributed, in part, to heightened opportunities and interest in countries such as Canada and Mexico.

UK-born brands including The Inkey List, Fable & Mane and Lush shared insights on entering the North American market, and the similarities between Canadian and British consumer preferences were highlighted. Colette Laxton, co-founder of The Inkey List, observed that Brits and Canadians tend to respond positively to softer marketing approaches, while Americans prefer more direct, or ‘louder’, activations. She recommended keeping campaign taglines to three words or less, and encouraged brands to get creative with loyalty schemes, as ‘free delivery and discounts are expected by US consumers’. Regarding strategies to launch in the US, brand founders unanimously praised local approaches that acknowledge the nuanced and state-specific nature of the US market. Lush, in particular, has found leveraging local cultural contexts beneficial through advocacy initiatives and ethical campaigns.

When it comes to retail, Kovack underlined the challenges faced by smaller brands in scaling without partnerships with major retailers such as Ulta, Sephora, Target, Walmart and Amazon. She also observed that while 'the big 5’ primarily cater to the ‘mass-tige’ market, as evidenced by SpaceNK's integration into Walmart, brands are encountering difficulties in the US because department stores there lack the level of reinvention seen in the UK.

Additionally, drug stores are grappling with an increase in thefts, leading to the installation of cabinets. These reduce convenience, ultimately impacting mass beauty sales. For further insights, stay tuned for our upcoming Modern Burglary report.

Strategic opportunity

Beauty brands contemplating expansion into North America should first explore Canada as an initial entry point before venturing into the US market. Upon entering the US, it's crucial to grasp the intricacies of local preferences and adjust content and product launches accordingly, all while ensuring brand consistency and integrity

Thérapie launches non-invasive body care treatment

UK – Aesthetic clinic Thérapie has launched a non-invasive body care treatment, Core to Floor. It combines Emsculpt – a body contouring technique that simultaneously burns fat and tones muscle – with a new Thérapie offering, EmSella.

EmSella is a US Food and Drug Administration-approved treatment that uses high-intensity, focused electromagnetic energy to stimulate the pelvic floor and help restore bladder control. The Core to Floor approach is positioned as a medical intervention for post-partum women, elderly people, those who have undergone chemotherapy and anyone else suffering from weakened pelvic floor muscles and subsequent incontinence.

The treatment is priced from £135 ($168.89, €157.48) per session, with six sessions recommended. Results are noticeable immediately, although clients are recommended to accompany the treatment with healthy lifestyle adjustments.

In our Skintellectual Bodycare market, we identified a shift towards ‘healthification’ in this sector, following in the footsteps of skincare. This is being driven by consumer demand for science-backed solutions and a movement towards skin health rather than skincare.

EmSculpt by Thérapie, UK

Strategic opportunity

Gyms or wellness centres should consider offering discounted memberships or exclusive fitness classes for clients undergoing non-invasive body-shaping treatments, encouraging long-term commitment to healthy habits

Foresight Friday: Marta Indeka, senior foresight analyst

AI imagery by The Future Laboratory, UK

Every Friday, The Future Laboratory team offer an end-of-week wrap-up of the topics, issues, ideas and virals we’re all talking about. This week, senior foresight analyst Marta Indeka looks at running, the end of luxury’s growth sprint and who is winning the fashion race.

: The London Marathon wrapped up last Sunday, but the ongoing running obsession is not going anywhere. Humble jogging is having a rebrand, and some even call modern running a performance art. But beyond the aesthetic clout of running, my eyes are on the social influence of Mass Movement. Initiatives such as Self Space’s newly launched Walk Club, created for those who like the idea of a Run Club without the running bit, are much needed to alleviate the youth loneliness crisis.

: Is luxury okay? Industry-wide reports of stalling growth are multiplying, the latest being Kering’s announcement of an 11% sales dip. While the luxury machine’s slowdown is cause for concern, new data revealed that LVMH’s global sales of handbags and perfumes surpassed those of French wine in 2023.

: The highly anticipated quarterly Lyst Index crowned Prada and sister label Miu Miu as the hottest brands for Q1 2024. At a time when people are wondering where are the women in top creative fashion roles, seeing two female-led houses at the head of the pack is a small win.

Quote of the week

‘Creating a modern brand universe is about finding something that’s uniquely yours, your point of view and your community, and then do it relentlessly, repeatedly and with the broadest surface area possible’

Krishna Nikhil, former CEO of Pangaia, told SOTA

Stat: TikTok leads global in-app earnings with record-breaking revenue

Photography by Shingi Rice, UK

Global – Despite facing regulatory challenges in several countries, TikTok emerged as the top-earning app globally in February, raking in £150.93m ($189m, €176.20m) in in-app revenue, surpassing its closest competitor YouTube by nearly 60%. This achievement marks TikTok’s consistent dominance, as it has held the top spot for at least 15 consecutive months, according to mobile analytics firm AppFigures.

TikTok’s revenue primarily comes from advertising and in-app purchases, where users buy coins for approximately £0.02 ($0.02, €0.02) each. These coins can be used to support creators during live-streams, as tips in comments or to boost personal posts for greater visibility. This data highlights TikTok’s adeptness in monetising user engagement through in-app purchases, outperforming other social media platforms such as Facebook, Twitter and Instagram. The platform’s success underscores its strong appeal to users worldwide, reflecting a shift in digital consumer behaviour and the success of social media platforms’ engagement strategies, a topic we explore further in our Pop Culture & Media sector.

Strategic opportunity

Offering content creators in-app monetisation options, like TikTok’s coin system, will not only incentivise them to increase engagement and loyalty among their followers, but it will also bring your business an alternative revenue stream