Is There Room for New Brands in the Beauty Industry?

Getty Images

I first got interested in beauty when I was six years old. Early, I know, but I've always been a glamour-obsessed Leo.

Since then, I've seen the rise of social media beauty influencers, beauty brands that have come and gone, indie brands that have become cult classics and iconic brands that have lost their popularity, but lately it feels like the industry is growing at an extremely rapid pace.

According to a study by Common Thread Collective, the global beauty market was valued at $483 billion in 2020 and is expected to skyrocket all the way to $784.6 billion by 2025.

We're midway through June, and we've already had dozens of new brands—including plenty of celebrity launches—grab our attention. But earlier this month, the iconic brand Revlon filed for bankruptcy after 90 years as a staple in makeup aisles everywhere, leaving makeup aficionados questioning the future of the growing industry.

Is it leaving enough space for the brands we love?

Getty Images

I started thinking about this possible oversaturation by breaking down my personal "gut feelings" on celebrity brands—what is it about the successful ones that make them succeed?

From investors to incubators, there's a whole industry that goes into creating celebrity beauty brands, but ultimately their success lies in the people who are buying their products.

The way I see it, there's a tricky social formula at play with celebrity beauty.

First of all, who are their fans?

If a group like BTS put out a makeup line right now, it would instantly go viral because of their fans' power on social media, but a beloved Oscar winner who doesn't have a close connection with fans may not.

Getty Images / Peter Dazeley

However, the success of a celebrity brand hinges on more than its fan base. After all, the business should want the largest pool of consumers possible.

Regardless of how much you may love a celebrity putting out a brand, it's important to remember there will always be someone who simply does not care about them or is completely oblivious to that celeb's existence.

The average consumer is smart, and they can tell when someone just slapped a label on a bottle and called it a day.

In my honest opinion as a beauty writer, the way to get someone to like a brand is with great products that feel thoughtful and like a solid amount of research went into them.

Celebrity-backed brands need to make their spokesperson more than just a model for ad campaigns—instead they should be used as a vocal and personal representation of the passion that went into the products.

Getty Images

On the other hand, traditional companies have a unique opportunity to leverage multiple celebrities, from actors to independent digital creators who are regarded as experts within the beauty community.

While celebrity beauty is becoming more popular with each new launch, not solely relying on one person as the face can also be majorly beneficial for a brand, as celebrities can fall out of favor with the public or simply see their popularity fade away.

Right now, I think it's essential for brands to diversify and find a less-explored corner of the market. Indie brands have found great success with clean beauty, and I believe the classic brands we grew up with also have room to grow by exploring new ingredients and innovative formulas (after all, they have the most resources for lab research).

I'm not ready to call the market oversaturated, but it sure is getting cozy—let's hope every new entry makes it worth our while.