Waterless Cosmetics Market Report

The advancement of technology is a key trend that is getting momentum in the waterless cosmetics industry. To deliver personalised experiences and increase consumer engagement, the cosmetics sector is adopting immersive technological innovations such as virtual reality (AR/VR). Start-ups use (AR/VR) to launch personalised virtual try-on makeup solutions, allowing consumers to make faster purchasing decisions. Furthermore, virtual stores and shopping tours are supported by AR and VR technology, making it easier to buy products. Furthermore, new technologies are changing the way brands display their products. For instance, in January 2022, L'Oréal, a personal care company based in France, unveiled Perso, an AI-powered device that formulates and dispenses personalised skincare, lipstick, and foundation. The Perso app uses uploaded selfies to analyse user skin condition data, location data to process environmental conditions, and user-entered skin care concerns to generate personalised formulas via the device.

Waterless cosmetics and skincare products are relatively pricey than are the general cosmetics and skincare products. Additionally, more expensive raw materials are used in waterless cosmetics since they are sourced ethically hence the waterless products are expensive. Consequently, high cost is expected to pose another barrier to the use of waterless cosmetics in the course of the forecast period. High price limits their appeal and sales to a larger number of consumers especially in the low-end product categories. Moreover, the need to educate the consumer as to the benefits and efficacy of waterless cosmetics poses another challenge that may possibly impede the growth of the market even further. These are some of the barriers that need to be addressed concerning the cost since enhance the market for waterless cosmetics.

In the waterless cosmetics industry, significant growth is being fuelled by product innovation through the introduction of new formulations and technologies that improve product effectiveness and attractiveness to consumers. Innovations consist of creating potent, concentrated formulas that do not require water, resulting in less packaging and longer product lifespan. For instance, in April 2022, in response to the increased demand for dry shampoos that can be used on the go, Japanese personal care company Kao Corporation has developed a pair of dry shampoos under the hair care brand Merit, including a shampoo sheet idea initially developed for use in space. Additionally, in May 2022, TaikiUSA's Bshi Fiber uses a nanofiber production method to produce waterless dissolving products.

The United States has emerged as an important market for waterless cosmetics, accounting for approximately half of all revenue in North America. Beauty bloggers, experts, and influencers have a significant impact on consumer’s beauty regimen and product preferences. Beauty influencers and bloggers have grown in popularity as social media penetration has increased, as has their ability to interact with their audience. These influencers and beauty bloggers are actively involved in writing publications and blogs that inform people about the latest trends in the beauty industry. Recognizing the importance of self-made social media influencers and celebrities in brand storytelling, many regional and local players in the United States offering waterless cosmetics are collaborating with such influencers and bloggers to boost brand awareness.