As per the report published by Kings Research, the Global AI in Beauty and Cosmetics Market was valued at USD 3,537 million in 2023. The market is projected to reach USD 14,051.5 million by 2031, growing at a CAGR of 19.14% from 2024 to 2031.
Sustainability focused AI applications are emerging as a significant trend in the beauty & cosmetics industry driven by increasing consumer awareness and the rising demand for eco-friendly and ethically sourced products. AI technologies offer innovative solutions to address sustainability challenges across the beauty supply chain, from ingredient sourcing to product packaging and distribution. For instance, AI-powered algorithms analyze vast datasets to identify sustainable sourcing options for ingredients, such as plant-based alternatives or renewable resources.
Additionally, machine learning models optimize manufacturing processes to reduce waste and energy consumption, which leads to more sustainable production practices. Moreover, AI-driven packaging solutions enable companies to design eco-friendly packaging materials and minimize the environmental impact of their products. By integrating sustainability into their operations with the help of AI, beauty brands are meeting consumer expectations for ethical and environmentally conscious products while driving positive social and environmental impact.
Key Insights
- Based on technology, the chatbots and virtual assistants segment is expected to register the highest CAGR of 20.74% over the forecast period
- Based on type, the skincare segment generated the highest revenue of USD 1,613.2 million in 2023
- By application, the commercial segment is expected to witness the highest CAGR of 20.79% over the forecast period
- On the basis of region, Asia-Pacific is anticipated to witness the fastest growth at a CAGR of 21.17% over the forecast period
Development of AI-Powered Beauty Devices to Offer Lucrative Opportunities for Market Expansion
The development of AI-powered beauty devices presents lucrative opportunities for market expansion, driven by the increasing demand for personalized skincare solutions and at-home beauty treatments. AI technologies enable beauty devices to analyze skin conditions, recommend customized treatments, and track skincare progress over time, offering consumers salon-quality results in the comfort of their own homes.
For example, AI-powered skincare devices perform advanced skin analysis using computer vision and machine learning algorithms to identify skin concerns such as wrinkles, acne, and dark spots. Based on this analysis, the devices recommend tailored skincare routines and product recommendations to address specific concerns. Moreover, the convenience and accessibility of at-home beauty devices appeal to busy consumers seeking effective skincare solutions without the time or expense associated with professional treatments.
Rising Social Media Platforms and Personalized Marketing Campaigns to Augment Market Growth
The emergence of social media platforms as powerful marketing channels has fueled the popularity of AI-powered beauty influencers and personalized marketing campaigns, driving the expansion of the beauty and cosmetics industry. Platforms such as Instagram, TikTok, and YouTube have become hubs for beauty content, attracting millions of followers who seek inspiration, tutorials, and product recommendations from influencers.
AI technologies play a crucial role in enhancing the effectiveness of influencer marketing and personalized campaigns on these platforms. For instance, beauty brands leverage AI algorithms to analyze user data and identify potential customers who are most likely to engage with their content or make a purchase. Moreover, AI-powered recommendation systems enable brands to deliver personalized product suggestions based on individual preferences, browsing history, and demographic information. This targeted approach increases engagement and conversion rates, which enhances the overall customer experience.
Asia-Pacific Set to Record a Staggering CAGR of 21.17% between 2024 and 2031
Based on region, the global AI in beauty and cosmetics market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is set to grow at a staggering CAGR of 21.17% through the forecast period. The increasing adoption of digital technologies and e-commerce platforms fueled by rising internet penetration rates and smartphone usage is aiding regional market growth. As consumers in the region become more digitally savvy, they are increasingly turning to online channels for beauty product discovery, purchase, and engagement.
Additionally, the growing middle-class population and rising disposable incomes in countries like China, India, and South Korea are bolstering the demand for premium beauty products and innovative skincare solutions. Moreover, the influence of K-beauty and J-beauty trends, characterized by a focus on skincare, natural ingredients, and personalized routines, is shaping consumer preferences and driving innovation in the beauty industry.
Market Players Concentrating on Innovative Product Launches to Drive Market Development
The global AI in beauty and cosmetics market is fragmented with key players such as L’Oréal, Procter & Gamble, Shiseido Company, Limited, FOREO, MEITU, Estée Lauder Inc., Beiersdorf, Haut.AI, EveLab Insight, Inc., and others. Companies are employing a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.