9 Health and Beauty Trends for 2021 That Aussie Brands Can't Afford to Ignore

Published by Kristian Curcio on Jan 13, 2021 5:03:20 PM

2021 is here and it’s promising a health and beauty boom here in Australia and around the world. Discover the 9 new trends that will help your brand thrive in our new normal.

With unprecedented global events and new trends emerging, 2021 is a promising year for health and beauty brands who know how to harness the power of social media. However, in an industry with rapidly rising competition, those who don't may soon get left behind.

Let’s not sugarcoat it; 2020 was a bad year. But with every cloud, a silver lining. For brands in the $93.5 billion global Health and Beauty industry, 2020 delivered huge growth; up to 900% more leads and a staggering 64.6% boom in sales.

As a result, the Australian beauty and personal care products market is expected to rise to 16.5% by the end of 2020 and forecasted to reach a staggering 6.7 billion by 2025.

This represents an amazing opportunity for all brands - not just the household names with deep budgets. With a solid social strategy, mom n’ pop health and beauty brands can leverage this sales surge too.

What’s driving this growth?

Two things spring to mind; rapid tech innovation and a covid-driven online spending boom. It’s no surprise that 2021 is touted by experts to be a phenomenal year for health and beauty brands big and small.

However, not all brands will thrive, much less survive. In order to ride the wave, brands need to have their finger on the pulse of what’s working - not just today but next year and beyond.

In this post, we’ll share the hottest new health and beauty trends for 2021 that will allow Australian-based brands to stand out of the rising competition, reach more customers, stay relevant and grow sales on social media.

#1 Subscription boxes

They’re one of the largest growth opportunities in health and beauty right now. Amid the aftermath of covid - where online spending has shot through the roof - we can only expect this trend to continue.

With minimal contact and sheer convenience, along with a certain novelty factor tied in (we all love getting “presents in the mail”) subscriptions are here to stay.

It’s not just subscription boxes. Expect a massive increase in all types of subscriptions that remove the risk of customers running out of their favourite products, and reduce the burden of consumers having to refill, restock or otherwise remember to add items to their shopping lists.

#2 Inclusivity

We’re seeing more and more brands speaking to real customers in their marketing. All shapes, sizes, skin colours, lifestyles and values are recognised as brands ditch the cliches and get real with customers.

#3 Artificial intelligence

Mobile apps that simulate certain makeups or even analyse skin for blemishes are becoming increasingly popular. In 2021, the need for an over-the-counter consultation may well and truly be over, as personalised beauty tips become just a couple of taps away.

#4 Sustainability and cruelty-free

According to research by Harper’s BAZAAR “more than 60% of women would invest in new brands if they were offering natural products.” Brands no longer have a choice to show a commitment to cruelty-free and sustainability both in the product and in its packaging; it has now become a standard expectation among consumers.

#5 Big data

Big data is big business for health and beauty brands and in 2021, it will become one of the biggest advantages in the industry. The reason is simple; the more you know about your market, the easier you can tailor your products to meet their needs and market those products more effectively.

For example, Indian beauty brand Freewill creates custom hair products that are based on analysis of consumer characteristics. Based on 1.7 billion formulations, they are able to create tailored products including shampoo, conditioner and hair serums.

#6 Brand partnerships

Recent market analysis by AdNews showed that brand partnerships (also known as co-branding) were “30 times cheaper than digital advertising.” The reason? Partnerships allow you to tap into existing audiences where a certain level of trust is already established.

Is there a complimentary brand that would work well for you? One that shares the same values and goes hand-in-hand with what you offer? Is there an influencer out there that regularly reviews similar products to yours?

As more people begin to tune out of advertising and marketing hype, partnerships could be a huge boon for brands in 2021.

#7 DIY beauty products

According to Social Standards, in response to the covid crisis, conversations in self-care has risen on social media from 2.15% to 14% in May alone.

In lockdown, people want to look and feel good to make up for anxieties and stress taking a strain on their every day lives. However, salons closed and concern for social distancing, many are taking beauty into their own hands.

From learning how to create your own beauty products at home, to creating DIY hand sanitisers, hair colouring, nail care, hand tonics and even face masks, brands are using this creative shift to deliver content, DIY kits and ingredients that helps people live their best lives.

In the United States, Nielsen reported a rise in hair dye by 23% and hair clippers by 166%. Madison Reed DIY hair-colouring kits saw sales increase 10x between March and mid-April.

In the United Kingdom, online sales of nail polish have seen double-digit growth every week since lockdown began in March.

While lockdown won’t be forever, we predict this surge in online sales of DIY beauty products will pave the way for new purchasing behaviours well into 2021 and beyond.

#8 Skincare boom

Unsurprisingly, 2020 was a good year for skincare with revenue amounting to US$1,387.8m. The market is expected to grow annually by 4.3% (CAGR 2020-2025). Specific skincare trends to look out for in 2021 are:

• New Beauty Tools - apps, DIY kits, breakthrough technology.
• Embracing Natural Beauty - body-positive attitudes, natural skin tones, less is more, proud of the skin you’re in.
• Superfood Ingredients - it’s no longer just what goes into your body, but what goes onto it. Superfoods have wonderful skincare properties and tie into a demand for more naturally sourced products.
• Multi-Use Products - products that double up in their usage will become the mainstay. Moisturising shaving cream, etc.
• Transparency - more and more people will want to know what’s in the bottle and WHY it’s in there (e.g. scientific research.)
• Ethics and morality - increasingly, consumers will only buy products that are ethically sourced and manufactured. This trend will only continue to rise in 2021 and beyond.

#9 Ecommerce will dominate

In Australia, eCommerce has huge growth potential in 2021 following the lasting impacts of covid. More time spent at home, social distancing, convenience and better online deals (thanks to lower overheads) will see sales soar for health and beauty brands that are well-positioned for the spike; strong SEO, optimised Ad campaigns and a solid social marketing plan going forward.

Australian eCommerce industry growth potential | Source: KPMG

In Australia, who is buying?

We see a lot of successful brands targeting millennials, as this generation tends to follow trends more closely while purchasing new health and beauty products more often. However, a significant market is emerging; baby boomers looking to slow down the effects of ageing and UV damage.

What are they buying?

With a high disposable income, Australian consumers buy a lot of colour cosmetics and skin care products in particular.

Where are they buying?

Millennials in particular buy online, led by social influence. Vlogs, bloggers and Instagram influencers lead them to purchasing decisions through useful content such as reviews, application techniques and other beauty tips.

Australian Facebook users are some of the most active advert clickers in the world, with an average of 22 adverts clicked per month. That’s over 396 million clicks across the entire platform.

Ready to grow your health and beauty brand?

With the Australian beauty and personal care products market expected to reach USD 6.7 billion by 2025, now is a good time to plan a social media marketing strategy that will allow you to stand out and win new customers.

For health and beauty brands, there is always a huge opportunity to capitalise on key calendar events.

New Year, Valentines Day and Chinese New Year are times when people are thinking about a new look and getting healthy. With the right social marketing plan, you can reach new customers who are motivated to buy at these key times of the year.

With the right social media marketing strategies and by leveraging these new health and beauty trends for 2021, your brand can expect to see huge growth online, even on a tight budget.

Want to get a head start?

The health and beauty industry is rife with competition and that’s only going to get worse over the coming months and years. But there is one simple thing you can do that will help you stand out and tap into a world of buyers.

Contact our team for a free, no-obligation social media strategy session. During this session, we’ll talk you through some of our most effective strategies to capitalise on new trends and upcoming events in 2021.

We’ll cover:

• How you can use Facebook’s daily insights to adapt your online marketing strategies for the coming months and years ahead
• How to reach more customers online and deliver your message straight to their handheld device
• How to funnel, nurture and convert cold traffic into customers using the latest eCommerce strategies
• How to align your store with modern-day shopping behaviour to boost your sales and achieve significant growth

And after the session, you’ll get a free social media funnel plan that provides you with a clear strategy for driving traffic and sales throughout 2021 and beyond.

Set up your business up to win in 2021 by contacting 500 today!