The expansion of artificial intelligence has affected every area of human life including the skincare industry. Valued at $181.2 billion globally (Statista), the industry has been undergoing a massive transformation with the introduction of AI. From AI-powered skin analysis to personalized skincare recommendations, this technology reshapes the market and boosts its further development. This guide explores how AI elevates the beauty industry in general and skincare in particular by introducing new tools that address diverse skin concerns and bring user experience to the next level.
Global skincare market through the recent years
The COVID-19 pandemic could not but do significant damage to the beauty market. The demand for beauty products naturally drops when everybody stays in during lockdown, resulting in up to 30% revenue loss. The need to wear masks accounted for a decline in demand for colored cosmetics. On the other hand, the need for skincare products increased — the lockdown stimulated a more conscious approach to consumption and motivated consumers to try more advanced self-care. As Zoom calls became a day-to-day reality, an even skin-tone won the fight over built-in filters and foundation-covered imperfections. L’Oreal reported an almost 19% increase in skin care product sales in 2020 — right in the epicenter of the pandemic.
The pandemic revealed the increased need for advanced skincare — a trend that is still going strong today. Consumers are becoming more conscious and proactive about their beauty routines. They no longer settle for generic products and pay close attention to what they apply on their skin. Besides the active components and sustainability awareness, individuals become more mindful of their skin concerns and seek products and services that cater to their unique needs and skin conditions. And it’s not just the face that is now receiving this kind of attention — the demand for advanced body care is evident as well.
Historically, individuals relied on generic skincare offers to address their skin condition. Take the notorious radium-based face cream that, according to advertisements, would give skin radiance (which, ironically, it did, but with a price to pay). Because there weren’t many offers at the market and the means of advertising were rather limited, consumers had no other choice but to rely on generic products. In today’s world where the market is brimming with offers and solutions and social media is as accessible as never before, the one-size-fits-all approach no longer attracts sales: consumers search for products that would address their individual concerns and cater to their unique skin needs. This also inspired the rise of dermatology and beauty care services. And while not everyone is eager to pay as much as $221 for an average visit to a dermatologist, leveraging AI-based solutions for finding a win-win skin care match seems more rational.
AI in Skincare: Use Cases and Practical Solutions
AI is no longer a novelty, including on the skin care market. Let’s see how artificial intelligence and other technologies are applied for various skin care scenarios.
AI-powered Skin Condition Analysis
One of the trends that define the skincare industry today is personalization and individual approach to every consumer’s needs. According to Forrester, 77% of consumers chose, or were willing to pay more for, a brand that offered a personalized customer experience. E-commerce businesses that implement personalization strategies report an average increase in sales of up to 40%. These figures emphasize the role of personalization in gaining customers’ attention, fostering loyalty, and, consequently, improving conversion rates and boosting sales. AI in skin care provides the personalization that was only attainable via personal consultations with a dermatologist or in offline stores. Skincare brands like Olay and La Roche Posay have already introduced smart skin analysis on their websites and apps, providing their customers with regimens and product recommendations.
Virtual Skin Assessment and Dermatology Consults
AI defies the limits of traditional dermatology by enabling remote consultations. With the help of it, individuals can get professional skin condition assessment from certified specialists from the comfort of their homes. AI eliminates the need for in-person visits, therefore making professional skin care guidance as accessible as never before.
AI fulfills an ever increasing number of functions in dermatology: from detecting skin cancer in early stages to data and material analysis and developing new treatment options for various skin conditions, the introduction of AI in dermatology creates the premises for a scientific breakthrough that will further advance our understanding of the human skin. Various studies already prove the effectiveness of machine learning for diagnosing up to 44 skin conditions, and the use range of AI in this area is only going to expand.
TINT for Personalized Skin Care Shopping
Banuba’s TINT is a solution that transforms online shopping for skin care products. The algorithm analyzes an individual’s face to determine unique skin care needs and give on-point product recommendations. TINT incorporates an advanced skin scanner that evaluates over 200 parameters for a comprehensive skin condition analysis. This data is then used for personalized recommendations tailored to address specific concerns.
This extent of customization and personalization ensures that consumers receive products that suit their specific needs, be it acne treatment, dark circles removal or fighting age-related skin change.The software can recommend single products and tailored sets where each item helps achieve beauty goals. According to Banuba’s insights, interaction with the possibility of personalized skincare recommendations can boost the conversion rate by 300%.
TINT is not only about analysis and recommendations. The AR features allow users to see the predicted short-term and long-term effects of using the recommended products. Unlike makeup try-on (which is also available in TINT) where the effect is imminent, introducing AR predictions for skincare products can help users see what they cannot when shopping for skincare products.
AI for Domestic Skincare Routines
Just like in online shopping and dermatology consults, AI skin care solutions are now becoming available for domestic use. The AI-powered beauty devices are slowly yet surely conquering the market, with a predicted compound annual growth rate of 12% until 2030. Let’s take a quick look at some prominent examples.
Luna Fofo by Foreo employs cutting-edge machine learning and personalization techniques to elevate skincare regimens. The device adopts a scientific methodology by analyzing the skin and assessing its condition on a 100-point scale. The AI offers insights on overall skin condition, hydration levels, etc. Armed with this data, the device then tailors specific brushing patterns to target specific skin concerns. Users are advised to perform this analysis every two weeks to keep track of their progress and have a visualization of how effective their skincare is.
AI-powered LED masks are a rapidly growing trend on social media. The device uses red and blue light therapy to stimulate collagen production and combat bacterial infections. AI algorithms adjust the treatment based on the user’s skin condition for optimal results.
AI in Beauty Product Development
One feature of AI is its ability to analyze extensive amounts of data. This is what dermatologists and skin care products developers use to accelerate research and gain insights on the effect compounds have on various skin types and skin conditions. This allows for rapid development of products that target specific concerns while minimizing the use of potentially harmful compounds. The use of AI in research helps brands (including giants like L’Oreal) to create skin care products that are not only highly effective but also sustainable and safe to use for a wide range of consumers.
Keeping pace with the ever-changing beauty landscape can be challenging. AI, however, can predict emerging trends by analyzing consumer preferences, scientific research, and market dynamics. This enables skincare brands to stay ahead of the curve and cater to individual skincare needs effectively. Whether it’s the latest breakthrough ingredient or a revolutionary skincare routine, AI helps the beauty industry adapt to evolving consumer demands.
How AI Benefits Skin Care Businesses: Stats and Facts
AI alters the skin care industry for both consumers and manufacturers. Research shows not only the elevated demand for solutions AI can offer, but also the evident benefits for businesses on both global and local markets. Here are some of the most impressive findings that speak in favor of introducing AI-powered solutions to skin care brands.
- The need for personalization is real. According to Forrester, 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience.
- Personalization boosts sales. AI-driven personalization is a game-changer for retailers and brands, especially in skin care. According to McKinsey, companies that personalize customer experiences see revenue increases of 5–15%.
- AI solutions require access to user data to work. Even though personal data is always a sensitive issue for users, 83% of them are willing to share their data to create a more personalized experience (Accenture).
- AI provides data-driven insights. Because AI can process vast amounts of data quicker than humans, it is instrumental in gaining insights into customer behavior, preferences, and emerging trends for retailers. According to Adobe, companies that use data-driven insights are more likely to have a competitive advantage and are 1.5 times more likely to report revenue growth of 15% or more.
- AI solutions save money. Retail Drive has predicted that in the 2020s, retailers’ adoption of AI in personalization is estimated to save $348 billion per year. This includes decreased return rates, introducing AI skincare and product consultants, decreased advertising budgets, and many more.
In a world where it seems that eventually, even a makeup brush will have its AI-powered app and sensors, keeping up with existing trends or inventing new ones is one of the ways to stay afloat. And finding the right software solution can definitely save time and energy, resulting in a boost of revenue and overall prosperity.
