What Must Brands Do To Survive In The Skin Care Industry Today?

The skincare industry has gained immense popularity within recent years thanks to the emergence of Korean skincare in the West and an increase in Gen Z-driven brands. However, with this rise comes a new challenge facing longevity. 

Despite the skincare industry’s projected growth to $194.05bn by 2032, the playing field isn’t as easy to infiltrate as one may think. With each and every brand competing for the attention of consumers, only a certain number of them are set to withstand the test of time.

But which ones are they? And what are they doing differently to survive an oversaturated skincare industry?

Read on as we explore the secret to longevity in the skin care space.

HOW KIEHL’S HAS DOMINATED THE SKINCARE INDUSTRY FOR 170 YEARS

Yes, you read that right. Kiehl’s was founded in 1851 and has remained a dominant force within the skincare industry ever since.

With time on its side, Kiehl’s is a prime example of what an esteemed history can do for you. Ultimately, staying true to your values and moving with the times to adapt to a shapeshifting industry is key to cementing a reputation as an iconic brand. But that’s not all…

Natural ingredients

Since its humble beginnings in a small New York apothecary, Kiehl’s has always been dedicated to the use of highest-quality, natural ingredients. Fast forward to 2024 and consumers are becoming increasingly conscious of the ingredients they’re putting on their skin and where these derive from, which, in turn, increases consumer demand. 

Luckily, Kiehl’s has always been one step ahead of the game, letting its commitment to natural ingredients and safe, effective, and sustainably–sourced formulations do all the talking. This not only attracts ingredient-conscious consumers, but also eco-friendly consumers too. 

@kiehls

Meet the new kid on the block 😉 Ultra Body Cream deeply hydrates the skin with Squalane and Pro-Ceramides that absorbs into skin quickly and delivers ultimate, long-lasting hydration! Available to shop now @nordstrom @nordstrombeauty kiehlspartner: @touchangel10 #bodycare #bodymoisturizer #dryskin

♬ original sound – Kiehl’s Since 1851 – Kiehl’s Since 1851

Customer commitment

Speaking of consumers…

When it comes to luxury brands, Kiehl’s has always understood the importance of providing a seamless customer experience. In fact, it’s the key to retaining consumers in the skin care industry. 

Its customer-first approach has earned it a devoted following. This is because as well as knowing they’re buying high-quality ingredient products, Kiehl’s customers also know they are listened to by the brand when it comes to their wants and needs. 

@kiehls

Kiehl’s #dermareader is FREE and open to anyone who wants to level up their skincare this new year! Come to a participating Kiehl’s store to get a skin consultation from our skincare professionals! ✨ #nycfreethingstodo #kiehlsdermareader #kiehlsflagship #skinconsultation

♬ Vibes – ZHRMusic

Devotion to research

Staying ahead of the curve, Kiehl’s has always devoted its time and resources to ongoing research and development as the latest science evolves. It may have been present in the skincare industry for a long (long) time, but that doesn’t mean its formulations are outdated. In fact, its extensive history works in the brand’s favour by allowing them to stay ahead of the curve despite the competition.

Staying true to its roots

Though Kiehl’s continues to lead the way in adapting to suit changing customer demands, one of its strongest suits is remaining true to its roots, no matter what changes are being made. 

Any successful luxury brand knows that an unshakable brand identity is key. The Kiehl’s brand packaging and logo has remained relatively unchanged since its inception into the skincare industry. Even today, its apothecary roots are evident. It even runs a small flagship apothecary in East Village, New York as a testament to its heritage. Consumers are especially impressed by brands with a clear origin story and even more so by those who keep it alive.

@kiehls

Our Creme De Corps Whipped Body Butter is basically a spa day in a jar. This luxurious whipped body butter absorbs quickly to nurture and moisturize skin during the colder months ahead (not just on an island, IYKYK😉) Available to shop @sephora ✨ #asmr #satisfying #selfcare #sephora

♬ original sound – Kiehl’s Since 1851 – Kiehl’s Since 1851

WHAT CHALLENGES FACE BRANDS IN THE SKINCARE INDUSTRY TODAY?

The road to building a brand equipped with the tools to withstand the skincare industry is rife with risks and challenges. Both newcomers and established players alike are subject to these challenges, with the demand for adaptability, innovation, and creativity only increasing year on year. 

Let’s explore them.

Staying true to your roots in a shifting landscape

It’s common knowledge that a strong brand identity can get you very far in the skincare industry. This is because consumers seek brands that align with their beliefs and values. However, the challenge that arises with this is being able to strike the right balance between staying true to your core values whilst still adapting to shifting market dynamics.

This means an agile approach to both product development and marketing strategies is key. Staying in touch with your consumer base’s wants and needs throughout the development stage will not only ensure success, but also relevance.

Navigating the saturation of the skincare industry

While the influence of social media has helped democratise access to beauty entrepreneurship, it has also facilitated a proliferation of brands. According to Statista, more than 9,000 beauty brands were launched in 2020 alone. This level of saturation underscores the immense competition within the industry, making it harder and harder for brands to stand out.

Aspiring skincare brand owners must deal with the reality that even a ground-breaking product may face challenges when it comes to cutting through the noise and capturing the attention and hearts of consumers.

The sustainability challenge

A shift in conscientious consumer wants and needs has led to the increased demand for products that uphold values of environmental responsibility and ethical sourcing. In fact, a Nielsen study found that 66% of consumers are willing to pay more for products from brands that are committed to sustainable practices. 

For brands, going green—whether that’s using eco-friendly packaging, sourcing ingredients responsibly, or creating products in a more sustainable way—can help them win over this growing, values-driven crowd. But it’s not always easy. That’s why it’s key for brands to really shout out about their efforts, making sure customers know exactly how they’re walking the walk when it comes to sustainability. Kiehl’s’ pledge to the environment can be seen below.

The capital-intensive nature of the skincare industry

Beauty is a capital-intensive industry. The average cost to bring a beauty product to market can range from tens of thousands to several million dollars. However, this challenge isn’t insurmountable. Innovative financial solutions have allowed several brands to rise from limited budgets to global recognition.

New brands should seek creative funding solutions in their early stages. Explore options such as crowdfunding, strategic partnerships or seeking investment from venture capitalists with an interest in the skincare industry.

IS NOW THE BEST TIME TO INVEST IN THE SKINCARE INDUSTRY?

Is there ever truly a “good time” to start anything new? One might argue against there being such a thing as perfect timing, however, the current state of the skincare industry isn’t too far off. 

The global skincare market is expected to reach over $200 billion by 2026, and with consumer preferences shifting toward health-conscious, ethical, and sustainable products, the industry is seeing dynamic growth. A key factor driving this growth is the recent influence of Japanese and Korean skincare, which has expanded global knowledge about multi-step routines, effective ingredients, and gentle formulations. Gone are the days of the St. Ives face scrub, or anything labelled Clearasil or Neutrogena. Sorry Millennials.

@nikkietutorials

are you PRE-PRIMING? the Mixsoon Bean Essence is a secret weapon for flawless skin – I know you’ll LOVE this one! #kbeauty #beanessence

♬ original sound – nikkietutorials

Similarly, the widespread adoption of skincare being a form of self-care has greatly contributed to the skincare industry boom. Rather than focusing on skincare simply looking good, it now goes far beyond being skin-deep, with products being seen as just as big an investment as your health. This is why influencers, brands, and medical experts are now aligned in reminding customers that their skin is their largest organ and, therefore, worth protecting against pollution, UV rays, stress, and even makeup.

From a more social angle, the current state of the skincare industry offers the best circumstances for launching something new due to the modern consumer’s innate desire for community. Nowhere else is this more prevalent than in the beauty industry; particularly within skincare. Oftentimes, we see the skincare community sharing tips and tricks for different skin types, championing successful brands, and engaging with skincare as a lifestyle. Very rarely is there ever any gatekeeping or hesitation towards sharing certain products and brands with one another. This sense of belonging helps brands cultivate stronger customer loyalty, driving repeat purchases.

@bambidoesbeauty

Skincare Tip✨that won’t cost you any more money!✨#skintok #skincaretip #skincaretips #skintype #dryskin #oilyskin #combinationskin #dehydratedskin #skincarehacks #skincarehack #skincare101 #skincareforbeginners #skincaretipsforyou #skincaretiktok #skincaretips101 #affordableskincare

♬ original sound – Bambi Does Beauty

The skincare industry is clearly on the up. Though emerging brands will need to think clearly about a multitude of factors surrounding their launch, the industry as a whole isn’t entirely insurmountable. In fact, if brands stick true to their identity, prioritise clean ingredients, and foster a sense of community, there is ample opportunity and space for international success.

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