A Look At The Growing Beauty And Wellness Space — And Some Companies To Keep Your Eye On By Faith Ashmore, Benzinga
Detroit, Michigan
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November 23, 2022 08:00 AM Eastern Standard Time
The beauty and wellness industry is currently experiencing a renaissance according to many, and companies can thank the younger generations and TikTok. TikTok has become a hub for all things beauty and wellness and in turn, could be the next big marketing gold mine.
TikTok and other social media apps are allowing customers to view and experience products like never before. A potential customer can watch a video of someone unboxing a product, applying it and even see how the product survives a busy day. Social media has become the premier beauty destination, and products or companies that go viral on TikTok see massive success. Products that go viral, like the Charlotte Tilbury Hollywood Contour Wand, are often sold out for months.
The numbers are impressive, too. The #beauty hashtag on TikTok currently exceeds 100 billion views. Studies show that most social media users access the app 12 times per day, with an average of 52 minutes per day. The organic and word-of-mouth nature of apps like TikTok is deeply impacting the wellness and beauty world.
The growth in the beauty industry isn’t limited to certain brands doing well. Asian skincare and beauty products are witnessing massive growth in European and North American markets. In 2022, revenue in the beauty and personal care market in Asia amounts to $210.9 billion and is expected to grow annually by 6.39%. Between brands going viral on social media apps and Asian beauty interest being piqued by K-Drama and K-Pop pop-culture sensations.
It is clear that the beauty and wellness industry is on the path to continued growth and could be worth market investors keeping their eyes on going into 2023.
Beauty And Health Companies To Watch In 2023
L’Oreal S.A. (OTC: LRLCY) saw some supply chain obstacles in the years past primarily due to COVID-19 but expects to bounce back completely in 2023. The company has recently invested in research and development (R&D) as well as hired additional employees to assist with its ramp-up in 2023.
Ulta Beauty Inc. (NASDAQ: ULTA) is one of the leading cosmetic suppliers in the United States. Ulta may have performed relatively well in 2022. Its most recent financial report saw the company increase net income by 17.8%. The growing interest in the wellness and beauty space is a contributor to Ulta’s increased performance.
Yoshitsu Co. Ltd. (NASDAQ: TKLF) is a Tokyo-based provider of health, wellness, beauty products, home goods and food. Asian Market is the company’s primary focus but it is expanding retail locations into cities in North America, Australia and the United Kingdom. Yoshitsu is also considering opening a distribution center in the U.S. to help with fulfillment times. In China (Hong Kong), the company has a growing number of retail locations and has expanded its brick-and-mortar roots into a successful e-commerce company.
Yoshitsu could be poised for expanded growth as the supply chain returns to normal following the pandemic. The growing interest in Asian beauty companies also positions Yoshitsu to potentially perform well in 2023.
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