[TREND 31] The COVID Revolution

The year 2020 is defined by the economic and social disruption caused by COVID-19 and the changes it triggered. The pandemic has weakened economies and deteriorated business structures; the gap between winners and losers has widened dramatically. The winners passed the test of viability. They used the disruption as an opportunity to make their networks more resilient, dared to aspire to more ambitious sustainability goals, utilized innovation and technological advances, and delivered online and on-demand services.

At a more fundamental level, the pandemic made us realize the fragility of human life. The fear of proximity to the virus and the lack of manpower created by the virus pushed us to use technology in its many forms like never before. Being a well-established part of industrial manufacturing, robots have now made forays into other segments such as agriculture, energy, healthcare, hospitality, and travel.

While sheltering in place at home, we were forced to reflect on our habits, which raised our desire for healthier and more sustainable living choices. Distancing policies moved us further online and created remote work, school, and even exercise environments.

Reflecting on #klinetrends conveyed in the past 30 days, we have seen the interconnectedness and convergence of trends and influences across countries and industries like never before. This year heightened the need for foresight and agility in how we collect information about the world and how we connect the dots to make decisions. At Kline, we will use these lessons to become a better insight partner for our focus industries to help you all navigate the road ahead, wherever it takes us. While some things will come back as they were, looking ahead, we expect major changes, with the new decade and era impelled and characterized by the impact of COVID-19. Despite clear challenges, we choose to look ahead with hope and want to help our clients rebuild better than ever.

#klinetrends #kline2020countdown #covid #innovation #covid19 #insights #remote
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 29] Pro Color Care and Thinning Hair Products Jumped

With salons forced to shut their doors because of the coronavirus pandemic, the professional hair care industry witnessed a shift in demand (roughly +15%) in Q2 vs. Q1 2020 for hair care products that help maintain color and manage roots. Products formulated for color care have historically occupied the largest market share; they gained even more in the first half of this year, holding a whopping 31.4% of the market pie. In addition, kits and multipacks of items for color care also saw a surge in demand as stockpiling products became a reality. As salons started to reopen, hair coloring services started to rebound but not at the same rate as products. Hair coloring service revenues in June 2020 were up nearly 2% over the last year.

Thinning hair products have also been trending for several years but more so in 2020 due to the pandemic outbreak, which has greatly contributed to increased stress levels. As such, product sales and salon services are expected to remain on a positive growth track despite bumpy sales throughout 2020. This is reflected in data from Kline PRO US, which showed that during Q2 — the worst period of 2020 — overall service sales were down more than 60%, but treatments for thinning hair were still up by over 20%. In the same period, sales of products for thinning hair were not down as steeply as overall salon sell-through.

#klinetrends #kline2020countdown #haircare #hairstylist #retail #hairproducts
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 30] Further Shift Toward Biologics

Advancements in biotechnology have made the large-scale development of biological drugs easier and more cost-effective. It is further aided by ever more sophisticated computing, data analytics, and engineering.

The COVID-19 outbreak has resulted in the world trying to utilize as many technologies known and available to contain the disease. New drugs that are being developed specifically to target COVID-19 mostly consist of biologics.

Demand estimation for biologic ingredients depends on the type of drug that is successful in treatment. While 2020's demand of ingredients and excipients for biologics is expected to witness a slow growth because of the negative impact of supply chain and production disruptions, the growth potential is high. Considering the research and various clinical trials being carried out to identify a preventative vaccine and/or biologic that can treat the virus, the expected commercialization of drugs that successfully pass phase III/IV is likely between 2022 and 2023. Hence, sudden growth is expected in demand of specialty chemicals in this industry in the event that both mAbs are developed as drugs, and vaccines are developed as prevention.

There will be a growth of 10% to 12% over the next five years, including novel biologics, biosimilars, and bio-betters. The highest growth in terms of the number of drugs is expected for mAbs, with a CAGR of more than 15% over the coming years. The number of biological vaccines and hormones is also expected to grow at strong rates of 8% to 10% and 4% to 7%, respectively. Overall biopharmaceutical chemicals market value is estimated at more than USD 3.0 billion and anticipated to grow at a CAGR of 9.4% between 2018 and 2023. This creates a pool of opportunity for the entire value chain of the biopharmaceutical industry, including suppliers of upstream and downstream processing ingredients as well as formulation excipients.

#klinetrends #kline2020countdown #klinetrends #kline2020countdown #biologics #covid19 #specialtychemicals #vaccines #drugdevelopment

Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 28] Independent Stylists Become a Force

Independent hair stylists have been already a strong focus group for many marketers before COVID-19 impacted salon hair care markets across the globe. In 2019, the number of independent stylists across key markets had shown growth ranging from 4% in countries like France or Canada to double-digit increases in Brazil and Russia. The year 2020 brought strong growth to this market segment. Pre-pandemic, the most common place where independents provided services was clients’ homes, accounting for more than 40% of overall time spent by stylists. This is likely to increase with restrictions related to regular salon functioning.

Independent hair stylists are also playing a key role when it comes to retailing professional hair care products. In fact, their sales are growing, while those of salons are declining. Revenue from haircutting and styling are similar between independent stylists and salons, representing almost half of revenue. The contrast is evident when it comes to services that are profitable for salons and rely heavily on education and a stylist’s technical skills. Coloring, perming, and relaxing services, collectively, account for a much higher share of independent stylists’ revenues than hair-salon revenue.

#klinetrends #kline2020countdown #haircare #hairstylist #retail
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 27] The Rise of Clean-Label in Food & Beverages

An increasing number of consumers opt for food and beverage products that they perceive to be “clean” or “natural.” Gluten-free, non-GMO, no artificial colors, organic, grass-fed, and preservative-free are claims consumers pay attention to in their quest for cleaner, greener living.

Approximately 58% of millennials consider buying clean and natural products as essential and very important, while only 45% of Gen Z and 42% of Boomers feel this way. There is a rising demand for clean label in response to COVID-19, and retailers are catering to the increasing demand of consumers.

The top two ingredients that consumers tend to avoid are sugar and corn syrup. Older respondents were more likely to avoid sugar than younger respondents. Clean label ingredients constitute 7%-10% of the total market for food ingredients in the United States. Key drivers for the growth of clean-label ingredients are new clean label product launches and health-associated issues related to artificial and synthetic food ingredients.

#klinetrends #kline2020countdown #cleanlabel #natural #green #glutenfree
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 26] Progress of Beauty Devices

Beauty devices are increasing in popularity as consumers do without their regular salon and spa visits in respect to stay-at-home orders amid coronavirus concerns. This niche market is witnessing a new era of growth, during which consumers began to depend on these beauty devices to continue their regular beauty rituals from the comfort and safety of their homes.

The U.S. market is experiencing a surge in demand for at-home beauty devices, growing at almost 7% in 2020. The COVID-19 pandemic has played a major role in this, as consumers were left with no choice but to adopt an at-home beauty regimen during lockdown times. Although the anti-aging category is the winner in terms of sales, the cleansing category continues to lead the U.S. market for beauty devices.

#klinetrends #kline2020countdown #wellness #beauty #healthandbeauty
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 25] The Importance of Self-Care

Self-care has taken on new meaning because of COVID-19, spanning across multiple industries. In healthcare, nutritional supplements sales reached an all-time high as consumers perceive them to be an effective and low-cost way to help strengthen their immune system. Sales of such products are forecast to exceed $10 billion by the end of 2020. Immune-enhancing supplements, especially vitamins C, B12, and D, have been on the rise since the onset of the COVID-19 pandemic. Sales of minerals such as iron, zinc, and magnesium, as well as herbal products like elderberry and echinacea, have also surged. Furthermore, as consumers are seeing doctors less frequently due to coronavirus, there has been a favorable environment fostering switches. Several Rx-to-OTC switch approvals took place in Europe, Japan, and the United States, with more expected to be approved.

In the beauty industry, consumers are becoming more conscious regarding the products they put on their bodies as well as the impact these have on the environment. Due to this, the demand for vegan beauty products is stronger than ever before, and several companies have launched new plant-based beauty products in 2020.

Self-care is also reflected in the food and nutrition industry, where products that claim to promote health or enhance immunity are in high demand. There is an increased interest in products that maintain healthy cholesterol levels, enhance immunity, and keep healthy blood glucose levels.

#klinetrends #kline2020countdown #wellness #beauty #selfcare #nutrition #minerals
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 24] Winning with Wellness

The wellness space has emerged in an exciting way, penetrating new market segments such as beauty, healthcare, food & nutrition, and home care. At the core of this fast-growing movement are lifestyle choices or products one uses to maintain good health and avoid being ill.  Nowadays, wellness products can span the gamut from personal cleansing products, hand soaps, aromatherapy, and home fragrances to nutritional supplements, sleep aids, probiotics, and CBD. All these segments are seeing notable increases, ranging from 3% to 14% in 2020. Skin care is the strongest wellness category in beauty, but personal care products such as deodorants and bath and body washes are important wellness categories too. A surprising category is candles, which have become a category of comfort and escapism for housebound consumers this year, moving from a desirable purchase to a quarantine essential. The category is on an upward trajectory and expected to advance at a CAGR of 6% through 2024.

Cannabis plays a key role in wellness, as it has gained the attention of marketers in the beauty, healthcare, and food & beverage industries. CBD for health and wellness is a rapidly growing area that more and more consumers turn to for help in managing stress and anxiety, as well as chronic pain and sleep disorders. The beverages category witnessed stronger growth due to products that claim to offer fast-acting benefits. The food category also witnessed double-digit growth driven by the growing popularity of cannabis-infused snacks. Sales of cannabis-infused food and beverages are forecast to exceed $1 billion by 2024. The rise of cannabis in beauty far outpaces growth of the cosmetics & toiletries market in the United States.

#klinetrends #kline2020countdown #wellness #beauty #healthcare #cannabis #cbd
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 23] Personalization Shakes Up Nutritional Supplements

American consumers are increasingly using personalized subscription services for clothing, beauty products, and meal kits—and now, for vitamins and nutritional supplements. The entry of several key marketers such as The Vitamin Shoppe and Nestlé Health Science has further added interest in personalized supplements. In a category worth more than $10 billion—with as much as 75% of the population regularly consuming supplements—the sheer number of available products and brands can be confusing. That’s why personalization makes sense, as it helps consumers navigate a somewhat perplexing category.

Companies like Persona Nutrition, Curos, Vitamin Lab, and Care/of offer personalized supplements to consumers, taking health assessments into account. Some will take the results of DNA tests that consumers may have previously done for heritage and ancestry services, combined with a health questionnaire on lifestyle, diet, activity levels, health issues, and health goals, to make suggestions on which supplements are best for that person.

#klinetrends #kline2020countdown #nutrition #supplements #beauty #vitamins #dietarysupplements
Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

[TREND 22] Intimate Beauty Brands to Witness Huge Potential

At one time, the topic of intimate beauty was considered taboo, and products were limited to mass retail aisles. However, the U.S. market started to gain significant momentum in the last few years, and now, against the pandemic backdrop, intimate beauty products are expected to record a 13% increase in 2020. At the heart of this fast-growing market is the wellness movement, as well as trends such as female empowerment and influences from premium skin care.

Intimate care marketers, which transitioned into the beauty realm in the last two years, have increased their digital focus to keep consumers engaged with their brands and explore the topic of feminine hygiene and wellness during quarantine. Moreover, many marketers have included physicians in their digital initiatives to add professional expertise to the conversation. In addition, heritage players with deep roots in this market are now updating their legacy brands to remain relevant at a time when consumers are more open to using intimate beauty products than ever before.

The retail sales of intimate beauty care products are forecast to increase by a robust 7% over the following five years. Education will play a key role in the market development, as will the shift to cleaner and greener hygiene. New players are expected to enter this space, while millennials and Gen Z are expected to impact sales on new levels.

Will cultured meat be a part of our future diets? Following the opening of a “test restaurant” in Israel, Singapore pushed boundaries by becoming the first country to approve lab-grown meat in the form of chicken bites from San Francisco-based startup Eat Just Inc. Cells taken from “source” chickens are cultured in a laboratory, creating potentially endless supplies of muscle and fat tissue. Advocates for the technology argue that if cultured meat can become affordable, it will be revolutionary―and not just in its potential to end, or at least significantly, cut back the meat trade. Millions of startup investment dollars have been poured into developing lab-grown meat.

#klinetrends #kline2020countdown #beauty #wellness #selfcare

Follow our 2020 COUNTDOWN CALENDAR for the 30 biggest trends HERE

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