AI-Based Beauty Product Market

Global AI-Based Beauty Product Market Size, Share & Trends Analysis Report By Distribution Channel (Online Retail, Offline Retail, and Subscription Services), By End User, By Application, By Product Type, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-23339 Publication Date: July-2024 Number of Pages: 289
2023
USD 3.4 Billion
2031
USD 12.2 Billion
CAGR
17.7%
Historical Data
2020 to 2022

Market Report Description

The Global AI-Based Beauty Product Market size is expected to reach $12.2 billion by 2031, rising at a market growth of 17.7% CAGR during the forecast period.  

AI-powered devices and applications offer sophisticated tools for analyzing hair and scalp health. By providing accurate diagnostics and insights, AI helps consumers and haircare professionals make informed decisions regarding haircare treatments and product selections. Hence, the haircare segment would register 1/5th revenue share in the market by the year 2031. These technologies use computer vision and machine learning to assess hair quality, scalp conditions, growth patterns, and potential issues such as dandruff or hair loss.

AI-Based Beauty Product Market Size - Global Opportunities and Trends Analysis Report 2020-2031

Smart beauty devices use AI algorithms to analyze individual skin conditions and preferences. They provide personalized skincare routines tailored to specific needs, such as hydration levels, wrinkles, and pigmentation. This personalized approach ensures that consumers receive targeted treatments that address their unique concerns effectively. Such features enhance user engagement and encourage regular use of the device. Thus, the rise of smart beauty devices drives the market's growth.

Virtual try-on tools and AR applications create an interactive shopping experience, allowing users to experiment with different beauty products in real time. This engagement increases consumer satisfaction and retention. Consumers can see how makeup products, such as lipstick, eyeshadow, and foundation, look on their faces before purchasing. This reduces uncertainty and increases confidence in buying decisions. Engaging and personalized experiences provided by virtual try-on tools can lead to higher conversion rates, as consumers are more confident in their choices and more likely to complete a purchase. Hence, the rise of virtual try-ons and augmented reality (AR) is propelling the growth of the market.

However, Developing AI-powered beauty products requires substantial investment in research and development (R&D). Companies must invest in AI algorithms, machine learning models, and data analytics capabilities to create effective solutions. These R&D costs can be prohibitive for smaller beauty brands and startups, limiting their ability to enter the market., high initial costs are hampering the growth of the market

AI-Based Beauty Product Market Share 2023

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.

Driving and Restraining Factors
AI-Based Beauty Product Market
  • Growth Of Smart Beauty Devices
  • Rise Of Virtual Try-On and Augmented Reality (AR)
  • Increasing Adoption of AI By Businesses
  • High Initial Costs and Investment
  • Data Privacy and Security Concerns
  • Expansion Of E-Commerce Industry Worldwide
  • Influence Of Social Media And Beauty Influencers
  • Complexity And User Experience
  • Resistance To Technological Change

Application Outlook

On the basis of application, the market is segmented into personalized skincare, virtual makeup try-on, hair analysis & styling, beauty enhancement, and others. In 2023, the hair analysis & styling segment attained 24% revenue share in the market. AI accelerates innovation in hair styling by predicting hair trends, analyzing consumer preferences, and optimizing styling techniques. Machine learning algorithms analyze vast datasets of hairstyle images, fashion trends, and consumer behavior to identify emerging styles and preferences.

End User Outlook

By end user, the AI-based beauty product market is classified into general consumer, premium & luxury, professional, and others. In 2023, the general consumer segment registered 64% revenue share in the market. AI-powered platforms and applications provide educational resources, tutorials, and insights into skincare, makeup trends, and haircare techniques. General consumers benefit from AI-driven guidance on product benefits, application methods, and skincare routines, empowering them to make informed decisions and achieve desired beauty outcomes.

AI-Based Beauty Product Market Share and Industry Analysis Report 2023

Distribution Channel Outlook

Based on distribution channel, the market is classified into offline retail, online retail, and subscription services. In 2023, the offline segment procured 34% revenue share in the market. Offline retail outlets provide a tactile and sensory experience that enhances consumer engagement with AI-based beauty products. Consumers can physically interact with products, test samples, and receive personalized consultations from beauty advisors or experts.

Product Type Outlook

Based on product type, the market is divided into skincare, makeup, haircare, beauty, and others. In 2023, the skincare segment garnered 28% revenue share in the market. Skincare issues can be complex and multifaceted, requiring accurate analysis and tailored solutions. AI algorithms excel in analyzing large datasets and complex patterns, making them well-suited for diagnosing skin conditions, identifying underlying causes, and recommending targeted treatments.

Free Valuable Insights: Global AI-Based Beauty Product Market size to reach USD 12.2 Billion by 2031

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 35% revenue share in the market in 2023. North America, particularly the United States, is a technological advancement and innovation leader. The region houses numerous tech giants, startups, and research institutions that drive AI and machine learning technology innovation. This ecosystem fosters the development of AI-based beauty products, including skincare diagnostics, virtual makeup try-ons, and personalized beauty solutions that resonate with tech-savvy consumers.

AI-Based Beauty Product Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 3.4 Billion
Market size forecast in 2031 USD 12.2 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 17.7% from 2024 to 2031
Number of Pages 289
Number of Tables 488
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Market Share Analysis, Companies Strategic Developments, SWOT Analysis, Winning Imperatives
Segments covered Distribution Channel, End User, Application, Product Type, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included L'Oreal S.A., The Estee Lauder Companies, Inc., Johnson & Johnson, Coty, Inc., Shiseido Company Limited, Givaudan S.A., Chanel S.A., FOREO AB
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List of Key Companies Profiled

  • L'Oreal S.A.
  • The Estee Lauder Companies, Inc.
  • Johnson & Johnson
  • Coty, Inc.
  • Shiseido Company Limited
  • Givaudan S.A.
  • Chanel S.A.
  • FOREO AB

AI-Based Beauty Product Market Report Segmentation

By Distribution Channel

  • Online Retail
  • Offline Retail
  • Subscription Services

By End User

  • General Consumer
  • Premium & Luxury
  • Professional
  • Others

By Application

  • Personalized Skincare
  • Virtual Makeup Try-On
  • Hair Analysis and Styling
  • Beauty Enhancement
  • Others

By Product Type

  • Skincare
  • Makeup
  • Haircare
  • Beauty
  • Others

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Singapore
    • Malaysia
    • Rest of Asia Pacific
  • LAMEA
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA
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