As global demand for unique beauty solutions surges, the sector’s embrace of AI reflects a profound shift towards customisation, efficiency and consumer satisfaction
Innovative products and services utilising new technologies are beginning to disrupt the beauty and wellness sector. As a result, traditional skills need to be strengthened and combined with modern technological skills such as artificial intelligence (AI), app development, augmented reality for try-on services, data analytics and enhanced customer engagement strategies. AI has made significant advancements in the beauty and wellness sector, particularly as the demand for customisation and personalisation has increased.
This trend reflects diverse customer preferences, lifestyles, body types and genetic factors. Recent news about Maybelline’s AI-powered “makeup” filters for Microsoft teams has reignited discussions on AI’s role in the beauty sector. It is crucial to explore how AI is transforming the industry and to stay updated on the latest developments. The global beauty industry market utilising AI was valued at $216.12 million in 2020 and is projected to reach $1.26 billion by 2027. An industry report indicates that the annual growth rate (CAGR) of AI in the beauty sector from 2021 to 2027 is expected to be 33.2 per cent. Several laboratories have developed AI-driven skin consultation tools that integrate augmented reality and artificial intelligence to analyse skin ageing.
These tools can identify signs of ageing and assess skin strength, providing tailored skincare recommendations to prevent further deterioration. Their algorithms are based on 10,000 images and 15 years of dermatological expertise. Users can take a selfie and provide their age and skin type to receive an estimate of their skin condition along with a personalised analysis. They will then receive customised skincare prescriptions.
AI assists in analysing skin conditions, recommending personalised skincare and wellness routines and even predicting trends, ultimately enhancing product development and customer satisfaction. Acne is a common concern worldwide, affecting 80 per cent of teenagers and 40 per cent of adults.
With AI, a database of 6,000 images representing various ethnic skin types enables accurate analysis and personalised routine recommendations for those suffering from acne. This groundbreaking AI technology draws from a library of 10,000 authentic images evaluated by real dermatologists, achieving an accuracy rate of nearly 97 per cent across eight clinical parameters and a wide array of skin types.
In the ever-evolving beauty and wellness industry, where innovation fosters confidence and self-expression, AI has become a powerful ally in creating more effective and personalised product formulations than ever before. By leveraging its diverse applications and capabilities, AI is driving a revolution that is changing how beauty and wellness products are developed, personalised, and marketed.
From trend spotting to precise product formulation, AI is reshaping the beauty industry in exciting and groundbreaking ways. Integrating AI into the formulation process can also ensure product effectiveness. AI algorithms can simulate how ingredients are absorbed and metabolised by the skin, identifying potential unwanted interactions or side effects.
This approach minimises the risks associated with bringing new products to market and ensures consumers achieve optimal results without compromising their wellbeing. Traditionally, skincare products have been developed with a one-size-fits-all approach, often failing to meet individual consumers’ unique needs. AI changes this methodology by analysing various data points, including skin type, age, environmental factors and personal preferences.
By using AI-powered tools, brands can create customised skincare products tailored to each customer’s specific requirements. For instance, AI algorithms can assess a user’s skin condition through photographs and questionnaires, recommending or formulating products with particular concentrations of active ingredients that address individual skin concerns. Additionally, AI can analyse molecular structures to predict how new compounds will interact with human skin, significantly reducing the time and cost of traditional trial-and-error methods.
The AI system recommends suitable ingredients, products and skincare routines tailored to each individual’s needs. It can also suggest branded products that address specific conditions in the beauty and wellness industry, aiming to connect deeply with each customer’s preferences. As technology continues to evolve, it promises solutions that will enhance both appearance and wellbeing in the future. Importantly, your data remains private; it is not stored and only you can view the results unless you choose to share your information with others. A personalised experience is crucial for success in the beauty and wellness industry. AI technology plays a significant role in identifying each customer’s unique preferences and addressing their individual needs.
As technology advances, beauty companies are expected to introduce innovative services that enhance customer interaction and contribute to the global growth of the beauty market. Online services are evolving rapidly alongside these technological advancements. The importance of websites, engaging social media platforms and online marketplaces is increasing. The share of online revenue in the beauty and personal care sector, which was approximately 4.6 per cent in 2017, is projected to rise to 18.2 per cent by 2025. The future of the beauty and wellness industry will depend on an omnichannel experience that seamlessly integrates online and offline interactions, utilising a range of digital tools to enhance the consumer experience.
Virtual try-ons and consultations have become standard in beauty retail; however, replicating the human connection remains a challenge. Online influencers and “show me how” content are gaining popularity as consumers learn to master services that they previously sought from professionals.
Additionally, live streaming on platforms like Facebook Live and Instagram significantly engages younger consumers. In India, the beauty and wellness industry is growing rapidly, expanding twice as fast as that of the United States and Europe. Greater consumer awareness and aspiration have led to increased spending on beauty and wellness products and services.
Per capita spending on beauty and personal care products rose from Rs 450 per annum in 2017 to Rs 684 in 2022, with a further increase projected to Rs 772 by 2025. Today’s consumers demand unique experiences, making traditional approaches less effective. There is a growing preference for convenience and on-demand services, which have become essential in the fast-paced lives of working professionals. As a result, there is an increasing need for transferable skills within the workforce in the beauty and wellness sector, as customer service expertise becomes more in demand.:
(The writer is co-founder and MD of Orane International, a training partner of the National Skill Development Corporation and a network Member of India International Skills Centres, an initiative of GoI; the views expressed are personal)
