By Anna Mayo, VP Beauty Vertical, NIQ
Image by Drazen Zigic
Think about the last time you discovered a new beauty brand, what drew you to it? Maybe it had innovative packaging, or spoke to a focus on sustainability. Or maybe it was tackling a problem that you hadn’t been able to find a solution to before, like skincare for post-menopausal skin, scalp care for textured hair, or even a scented body wash to support mental health and relaxation. More often than not, these brands that are pushing boundaries and driving innovation tend to be independent (indie) brands, those who are independently owned and operated, and not part of a larger conglomerate of brands.
Indie beauty brands come in all shapes and sizes, but some common qualities that they tend to share are that they are innovation drivers, showing up first to market with the latest trends. They also tend to be authentic and unique, bringing something new to the table and many times being started to solve the specific needs of their founder. Indies are known for getting products to market quickly and their ability able to adapt on the fly. They also tend to be able to form strong communities and connections with their followers, often through direct communication. While these qualities are not unique to indie brands, we do tend to see them concentrated more within this group.
While indie brands may have been a niche market in the past, this segment of small and innovative brands has now blossomed into a real force to be reckoned with. When we analyze our NIQ Omnishopper Panel data, which covers the full view of US beauty sales, we see that indies have quickly risen to be a strong segment in beauty, collectively representing $30.5B in sales and are capturing a 32% dollar share of the category.[1] In addition, indie beauty brands are making waves and outpacing the growth rate of the total beauty and personal care market, growing 15.7% year over year vs. 9.9% for total beauty and personal care.[2] Indie brands are greatly influencing beauty trends and how larger conglomerates think about their products and positioning. With this, here are three of the main ways that indies are re-inventing the beauty marketplace.
Product Offerings
In the product space, indie brands have played a big role in creating solutions for niche consumer groups, even wading into what we call ‘taboo topics:’ areas which have traditionally been swept under the rug or ignored. Some of these more niche need-states have shown strong growth lately, brought to life by the efforts of indie brands and founders to take on these important topics. These niche products areas can be things like sustainable packaging, men’s cosmetics, ingredient-first products, and even products to support mental health.
Route to Market
Beauty brands have benefited from an expansion in routes to market, which has significantly helped start-up brands get on their feet faster. Online stores with infinite shelves have more room to take on indie brands; plus, brands can sell directly with direct-to-consumer (DTC). This method had exploded recently, with $6.7B of sales going directly to consumers through DTC sites.[3] An online-first approach to sales has resulted in a larger share for indies online, where they make up 49% of online sales vs 21% of in store sales.[4]
Fostering Connections
Indies are changing the game in how they communicate with their consumers, highly able to leverage social media, allowing them to forge an authentic and direct connection. Social media is a large part of marketing your brand; the average US adult spent 48 minutes a day on TikTok in 2022[5], and influencer marketing spend jumped 12.2% in the US the same year.[6] Social media is changing the purchasing game as well, with 71% of Gen Z consumers and 52% of Millennial consumers are likely to purchase a beauty they found from TikTok. [7]
As the beauty & personal care industry continues to evolve, it’s important not to count indie brands out, as NIQ anticipates they’ll be setting trends and bringing new excitement to the consumers for years to come.
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[1] Source: NielsenIQ Omnishopper Total US Panel;; L52 WE 06/17/2023
[2] Source: NielsenIQ Omnishopper Total US Panel;; L52 WE 06/17/2023
[3] NielsenIQ Total US E-commerce Measurment Powered by Slicce 12 monts through 4/30/2022
[4] Source: NielsenIQ Omnishopper Total US Panel;; L52 WE 06/17/2023
[5] Source: Statista 2023
[6] Source: HubSpot 2023
[7] Source: Jungle Scout, Jan 2023
Categorized in: Trends/Insights