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Differentiation is key to compete in the beauty business—& the most innovative packaging strikes a balance between sustainability and aesthetics.
November 29, 2023
By: Jamie Matusow
Editor-in-Chief
Beauty’s road to innovative packaging has become increasingly crisscrossed with the path to circularity and global eco-consciousness. With competition stronger than ever, cosmetic brands face multiple challenges, from keeping up with speed to market and ever-growing TikTok and AI trends, to meeting demand for transparency and sustainability. From materials used to color applied, differentiation is key—and packaging has taken on an even more elevated role as a means to convey a compelling story. And both global and indie brands continue to rely on industry suppliers for a leading edge. In her column for Beauty Packaging, “4 Key Ways Innovation Is Changing the Beauty Industry,” Anna Mayo, vice president beauty vertical, NIQ, says, “While we all love the thrill of trying and discovering new beauty products, innovation is more than just fun and games.” She explains: “Innovation is crucial to brand success; with a constantly evolving marketplace, beauty brands especially need to differentiate themselves to stand out in a busy industry.” According to the NIQ BASES report, “with the constant evolution of shoppers’ wants and needs, it’s more important than ever for brands to innovate, not only on behalf of consumers, but also to stay relevant in the beauty space.” In addition, the NIQ research found that new innovations had shown a 19% decline in the beauty and personal care space. “Those who continued to innovate over this time were rewarded with outsized gains, and were 2.9 times more likely to grow sales than those who pulled back,” says Mayo. “In the face of change, evolution endures, and companies who prioritize innovation seem to be leading the pack.” Sharon Garment, president, SG Beauty Development, Inc., says she has seen an evolution in the term “innovative packaging.” The beauty industry veteran tells Beauty Packaging that the meaning of innovation has changed, and continues to evolve because of the “viral nature of development now. There are so many new factors that influence and dominate the process, many of which historically did not exist.” Before Internet, says Garment, “there was only classic advertising as a way to convey newness or novelty but now everything has to be viewed through a new filter in order to resonate with a new audience.” “Developing an ‘innovative’ package or product was once solely focused on performance and user experience,” says Garment, “whereas now, ‘novelty’ and catchiness and engagement drive the experience.” Ultimately, says Garment: “Innovation is always in tension with both speed to market and scalability.”
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