There is a difference between disruptive innovation and disruptive technology. Disruptive technology refers specifically to the technology and disruptive innovation is the use of the technology that makes the technology and services more accessible to the broader market. The pandemic experience that socially isolated many people globally resulted in increased competition in the cosmetics industry. It created the need for many companies to find both disruptive technologies and disruptive innovations necessary to remain competitive in the cosmetics industry, in other words both forms of innovation are now imperative for a business to survive and grow. Further, the current post-pandemic global situation, including war in eastern Europe and the Middle East has resulted in polarization of much of the global population leading to a disruptive global environment. Disruptive innovation frequently involves a network of partners. The interaction of the network of upstream and downstream partners, suppliers, contractors, and distributors all have a role to play regarding development and launch of innovative products and must all be involved during the development process.

Disruptive Innovation and Technology Considerations

Consumers will seek affordability and value, during 2024 they will tend to seek alternative products that provide premium benefits at lower cost, this trend referred to as “Value Hacking” (1). It will be important to understand consumer buying patterns, providing information to them focused on the value proposition of cosmetic products. We can also expect the rise of social media de-influencers who will challenge product claims and benefits (1). Consumer spending will vary globally depending upon the region. China, India, and Japan consistently rank in the top largest markets and this trend is likely to continue. In North America per household disposable income growth is expected to decelerate to 0.5% in 2024, it is expected that consumers will maintain a cautious approach in their spending habits through the coming year (2). Single-person households are predicted to expand faster globally than any other household type, accounting for 20.6% of global home in 2024 (2), further the resulting decline in the number of children per household will alter the demand for various consumer products as the age groups adjust accordingly.

The use of innovative tools permit product development of innovative color cosmetics, augmented reality and virtual reality give consumers the opportunity to virtually evaluate numerous shades of pigmented products and gives a sense of selecting a personalized product. The manufacturer saves money as a beauty consultant is not necessarily needed to sell the product. High-definition cameras combined with artificial intelligence software enable consumers to use their smartphone to self-diagnose skin conditions including wrinkles, fine lines, texture and even acne, then propose a treatment regimen. This technology might seemingly eliminate the need for a consumer to bypass the dermatologist, it should be the responsibility of the manufacturer to remind the consumer to continue to seek proper medical advice for major skin concerns.

Consumer Trends

An example of disruptive innovation is the “direct to consumer approach” that is bypassing traditional brick and mortar stores. Selling products direct to the consumer has potential to reduce product cost that can be passed on to the consumer. The direct approach also provided the brand to educate the consumer about the product and it’s benefits directly to the consumer. The information if communicated effectively creates the impression of transparency and honesty.

Beauty brands, particularly the independent brands are growing their product lines, creating diverse products that can be available to new regions where the consumer population is growing. These products will address diverse skin tones, address differences in hair care needs and men’s grooming. In addition to natural and organic ingredient-based products, other product lines based on science will also be introduced to the marketplace. Study data supporting claims, certification from recognized agencies will become increasingly more important.

Trends that provide an opportunity for innovation include mood enhancing technologies that promote de-stressing mood-boosting referred to as neurocosmetics. Innovation will also take the form of technologies that improve product efficacy and targeted skin care.

Data-Driven Innovation and Interest in White Space Analysis

A newly launched product becomes an innovation after it has been proven in the market as a commercial success (3). To increase the success of a product industry has increasingly relied on data. The consideration in this regard with respect to innovation is what is the most successful approach to obtain information about customer needs that lead to innovative products? Customers may only know what they have experienced and have less insight associated with innovative ideas. White space analysis is a method used to evaluate existing products, services, and markets with a focus to identify unmet needs. The white space is the identified opportunity as it provides new business opportunities. A traditional market analysis evaluates competitors and the market they operate in to find opportunities to differentiate their products, the white space seeks gaps in products that do not currently serve anyone. One of the benefits of this analysis is the ability to focus on different geographic regions to help determine product innovation in diverse geographical areas (4).

Concluding Comments

We can expect disruptive innovation to focus on advanced formulations with “cutting edge” ingredients and technologies not only targeted for specific solutions, also targeted for geographical locations based on consumers use habits and cultural/ethnic preferences. Launch campaigns will include consumer educational initiatives presented by experts to enable consumers to make informed choices. The growing use of white space analysis will likely become an increasingly popular resource to provide intelligence leading to disruptive innovation and technologies. The challenge will be for startup companies and other companies with limited financial resources to conduct and interpret white space and other consumer research studies with limited funding and time.