Covid-19 presents new challenges and opportunities in cosmetics industry

Coty is seeking support from beauty celebrity, Kim Kardashian. Credit: Postmodern Studio / Shutterstock.

Covid-19 has changed the face of numerous industries globally and the cosmetics industry is no exception, presenting new challenges and opportunities for brands.

While the once-booming cosmetics industry has fared better than other markets and industries, it remains likely that 2020 will be one of the toughest years it has ever faced. The spread of Covid-19 and the subsequent store closures and social distancing measures taken by countries, have had a huge impact on consumption and sales, meaning that companies have been forced to implement new strategies to widen their customer base and generate revenue.

Coty, one of the leading cosmetic brands globally, had been facing financial difficulties prior to the Covid-19 outbreak due to high levels of debt, as a result the pandemic sparked further concerns for the company.

In a bid to counter a fall in revenue, Coty turned to the support of celebrity Kim Kardashian West and her popular KKW Beauty brand. On June 29, 2020 Coty announced it would acquire a 20% stake of the eponymously named cosmetics line owned by the reality TV star, in a bid to bolster its influence and customer base, without the presence of physical stores.

In the coming year, it is likely that companies with the appropriate financial muscle will target these smaller, yet successful brands as means of promoting growth in these difficult times.

Pre-Covid-19 digital transformation trends will accelerate

Prior to the pandemic, large brands had already begun to integrate Augmented Reality (AR) into their business models, as a means of attracting millennial consumers and boosting consumer engagement. The adoption of AR is only likely to intensify, as brands seek to bridge the gap between online retail and brick and mortar stores.

MAC Cosmetics is one of the latest beauty giants to jump in on the trend, launching a virtual try-on feature in partnership with the application, YouCam. The feature allows users to virtually try on beauty products before making a purchase and is indicative of the company’s belief that AR will play an important role in the future of the industry.

AR is most likely to provide a boost for brands while lockdowns remain in place and hygiene measures are more stringent, particularly for consumers who are most vigilant in protecting themselves from coronavirus exposure.

The self-care and wellbeing trend will play a more central role

Another trend which has surfaced amid the pandemic is a growing demand for wellbeing and self-care products, a trend which is likely to remain prominent in the long term.

The growing awareness of personal wellbeing and the high levels of anxiety surrounding the Covid-19 pandemic are likely to be the main driving force behind demand for more products catered towards wellbeing and ‘feel good’ attributes.

Make-up will no longer be solely based on aesthetics, the ingredients and their impact of health and wellbeing will play a more central role in purchasing decisions, as consumers seek to stay well amid the pandemic and beyond.

Latest reports from

• Global Make-Up

Or to search over 50,000 other reports please visit

MarketLine Report Store

MarketLine is a sister company of this website.