What's Happening?
Coresight Research's latest report highlights a shift in the beauty industry towards hyper-personalization, AI-driven diagnostics, and biologically rooted formulations. The report, authored by Madhav Pitaliya,
outlines how beauty is evolving 'from the surface to the cell,' challenging industry stakeholders to adapt operations across the value chain. Personalization is now an expected standard, requiring manufacturers to reimagine their R&D and production frameworks. Companies like L’Oréal and Estée Lauder are adopting modular systems for real-time customization based on biometric data, while AI and biotechnology drive innovation in formulation, manufacturing, and consumer engagement.
Why It's Important?
The shift towards personalization and biotech-driven products reflects changing consumer demands for individualized beauty solutions. This evolution impacts product design, manufacturing infrastructure, and supply chain strategies, requiring brands to integrate AI and biotechnology to remain competitive. The report identifies AI as a key driver of innovation, enabling responsive production and cost savings. Biotech unlocks access to sustainable, high-performance actives, allowing brands to offer bioidentical and ethically sourced ingredients. As beauty increasingly overlaps with wellness, the industry is redefining efficacy standards and partnering more deeply with the biotech sector.
What's Next?
The report forecasts a shift from channel-first to intent-first retailing, where consumer purchase decisions are driven more by need than by platform. Brands must realign digital and physical strategies around shopper intent, providing better experiences rather than distribution silos. Digital platforms will play a growing role in subscription-based replenishment and AI-driven recommendations, while physical stores will prioritize immersive, experiential discovery. Additionally, geopolitical uncertainty and tariff volatility are reshaping manufacturing and sourcing strategies, prompting brands to adopt multi-hub production models and regional manufacturing expansions.
Beyond the Headlines
The competitive pressure posed by indie and digitally native brands is driving larger manufacturers to adopt digital tools and modular R&D systems to maintain agility. These brands prioritize speed, niche positioning, and creator-driven marketing, allowing them to iterate quickly and test products at lower cost. In response, larger manufacturers are investing in AI, biotech, and diagnostics start-ups to strengthen innovation pipelines and maintain relevance amid shortening trend lifecycles. The report emphasizes the importance of digital supply-chain technologies in enhancing scenario planning and mitigating risks posed by future disruptions.
