Injectables and Weight Loss Drugs Stir Up the Beauty Industry
The beauty industry is grappling with a new reality as the growth of traditional cosmetics plateaus. Meanwhile, injectable treatments and GLP-1 weight loss drugs are seizing a significant share of consumer spending. This shift in market dynamics is highlighted in a recent report by Jefferies.
Jefferies, the investment bank, forecasts a steady but modest 4% growth rate for beauty sales in the medium term. However, the injectable cosmetics category is expected to outpace this, growing at 11% annually. This is nearly three times faster than the growth rate of traditional beauty products. The report points out, “Beauty now encompasses more categories, but with the same share of wallet.” It also warns established beauty brands of potential cannibalization from these emerging treatments.
This trend is indicative of consumers’ evolving priorities. They are moving away from quick cosmetic fixes and investing more in long-term wellness solutions. Following the release of the report, L’Oréal shares fell 1.8% to 381.65 euros, and Beiersdorf shares dropped 1.2% to 93.50 euros. Industry experts believe that beauty companies must recalibrate their strategies to compete with medical aesthetics and pharmaceutical wellness solutions. These new competitors promise more dramatic and enduring results.
Source: WWD