2024 cosmetics industry report: AR’s transformative role and Arbelle’s innovative approach

The cosmetics industry report for 2024 unveils a transformative era marked by the integration of augmented reality (AR) in beauty. At the heart of this evolution is Arbelle, leading the charge with its state-of-the-art virtual makeup try-on solution.

This report, therefore, provides an insightful glimpse into the significant growth, trends, and technological advancements reshaping the cosmetics landscape.

Moreover, with a focus on the growing demand for personalized beauty experiences, this report highlights the necessity of AR makeup try-ons for cosmetic brands and outlines strategies for leveraging AR and AI to build a robust beauty brand in this new era.

Join us as we offer a roadmap for cosmetic brands to thrive in 2024 and beyond, uncovering how Arbelle is not just meeting but exceeding the modern consumer’s expectations.


Beauty industry report – growth and projections


1. Current market size and growth

✧ 2023 beauty industry’s market value:

$557.24 billion

✧ Projected market value by 2030:

$937.1 billion (Grand View Research)

2. Future projections

✧ The global beauty tech market is expected to reach $8.93 billion by 2026, a growth of over 102% from $4.41 billion in 2022. (Statista)

✧ Companies that embraced digital transformation saw an 18% higher gross margin than those that didn’t. (Harvard Business School research)


1. Importance of personalized recommendations and customer experience

76% of consumers are more likely to make a purchase with personalized recommendations. (McKinsey & Company)

✧ Moreover, 78% are more likely to re-purchase and recommend the company. (McKinsey & Company)

✧ For nearly 90% of consumers, customer experience is as important as the products/services a company provides. (Salesforce)

2. Online research and in-store behavior

Research online/purchase offline effect:

57% of beauty consumers prefer online research before in-store purchases. (Internet Retailing)

✧ Decline in in-store testers usage:

2/3 of makeup users avoid physical testers. (NPD)

The pivotal role of AR technology in beauty


1. Beauty AR and virtual try-on effects

✧ Virtual try-ons can lead to a 2.4x increase in purchase likelihood. (Tech Crunch)

✧ Advertising beauty products with AR and VTOs can boost conversion rates by up to 94%. (Think with Google)

✧ Using virtual try-ons can lead to up to 64% fewer product returns. (Glossy)

✧ AR’s interactive nature keeps users engaged longer than traditional online shopping methods – by 200%. (Threekit)

✧ Beauty brands that incorporate AR into the customer journey see up to 90% higher conversion rate. (Retail customer experience)

✧ Yet, despite its potential, only 15% of online retailers have adopted AR. (KommandoTech)

2. AR adoption and preferences

✧ Over 90% of Americans are using or considering AR for shopping. (Think with Google)

✧ By 2025, nearly 75% of the global population and almost all smartphone users are expected to frequently use AR. (Snapchat)

93% of Gen Z want to use AR for shopping and 88% for makeup try-ons (Snapchat).

59% of consumers are likelier to purchase a product that’s visualized through AR. (PRWeb)

3. E-commerce returns statistics

✧ E-commerce returns rates in 2022 were 16.5%, more than double since 2019 (8.1%). (Statista)

Return rate in the beauty and cosmetics industry increased to approximately 10% in 2023 from around 4% in 2020. (Shopify)

✧ Overall return costs in the U.S. reached $212 billion in 2022. (NRF)

4. Importance of AR in reducing returns

67% of customers review an online store’s return policy before purchasing, indicating concerns about product satisfaction. (Invesp)

64% of returns are due to products looking different in person, highlighting the need for solutions like virtual try-ons to align customer expectations with product realities. (The Good)

As we’ve explored the impressive growth of the beauty industry in this cosmetics industry report, along with the emerging consumer trends, it becomes evident that technology, particularly AR, is not just a passing fad but a cornerstone of future market success.

Embracing AR technology, especially in makeup try-ons, offers substantial benefits for brands looking to innovate and connect with their audience on a deeper level


Cosmetics industry report 2024: Benefits of AR makeup try-ons for cosmetics brands


cosmetics industry report_AR benefits_Arbelle

As we pivot to the tangible impacts of AR technology in the cosmetics sector, here we delve into the many benefits of AR makeup try-ons for brands. Read on and explore how this cutting-edge technology is not only revolutionizing the shopping experience but also becoming a vital tool for brand growth and consumer engagement.

✔ Enhancing customer experience

AR makeup try-ons transform the online shopping experience, making it interactive and personalized. This leads to increased customer satisfaction and engagement, as shoppers can try products virtually before making a purchase.

✔ Increasing sales and reducing returns

By providing a realistic preview of products, AR try-ons significantly reduce the uncertainty associated with online shopping. This not only drives higher sales but also minimizes product returns, a critical factor in maintaining profitability.

✔ Building engagement and cultivating brand loyalty

In an era where customer experience is king, AR try-ons offer a unique and memorable interaction with the brand. Arbelle’s virtual try-on experience is designed to captivate and retain customer attention, fostering a deeper connection with the brand as users explore various products. This innovative approach fosters customer loyalty and sets brands apart in a competitive market.

✔ Gathering valuable consumer insights

AR technology can also provide brands with data on consumer preferences and behaviors when integrated with solutions such as face analysis. These insights are invaluable for product development, targeted marketing, and enhancing the overall customer experience.

✔ Global reach and accessibility

AR makeup try-ons eliminate geographical barriers, allowing brands to reach a global audience. This technology makes it easier for customers from different regions to interact with products, expanding the brand’s market presence.

Try makeup virtually – anytime, anywhere

✔ Facilitating seamless omnichannel experiences

AR technology plays a pivotal role in blending digital and physical shopping environments, offering a seamless omnichannel experience. Brands utilizing AR, such as Arbelle, effectively bridge the gap between online and offline realms, ensuring a consistent and comprehensive shopping journey for consumers. This integration enhances the flexibility and convenience of the shopping process, catering to the diverse preferences of today’s consumers.

Building a bulletproof beauty brand strategy with AI and AR


cosmetics industry report 2024_Arbelle

Now that our cosmetics industry report has delved into the crucial statistics and outlined the invaluable benefits of AR and AI, it’s time to get down to the nitty-gritty. Let’s explore how you can harness this wealth of information to craft a robust, forward-thinking strategy for your beauty brand.

1. Integrate AR into your marketing strategy

When you embrace AR, you can create immersive marketing campaigns that resonate with the modern consumer. This includes leveraging AR for virtual try-ons, interactive advertising, and enhancing social media presence, providing a unique and engaging brand experience.

  • For example, you can use AI in virtual try-ons to analyze user interactions for emerging trends and consumer preferences. This real-time insight enables swift responses to market changes, keeping your brand ahead.
  • You can also use it for market segmentation. Integrating face analysis with virtual try-ons, for example, allows you to gain in-depth insights into customer demographics. This data helps in creating targeted offers and campaigns, enhancing both sales and customer experiences.
  • Are your customers satisfied with your products? You can gain some insight into that, as well! Employ emotion analysis technology to gauge real-time user reactions during virtual try-ons. This immediate feedback is crucial for adapting products and strategies to meet customer preferences and enhance satisfaction.

2. Create personalized customer experiences

Leveraging AI and AR technologies, beauty brands can offer bespoke customer experiences that resonate deeply with individual preferences. Virtual makeup try-ons, powered by sophisticated algorithms and data analysis, are designed to deliver personalized recommendations tailored to each user’s unique skin tone, facial features, and style preferences.

This customization significantly elevates the shopping experience, making it more likely for customers to find products that perfectly align with their needs. And, as the numbers above show, 76% of consumers are more inclined to make a purchase when presented with recommendations that cater specifically to their individual characteristics and preferences.

personalized recommendations_cosmetics industry report_Arbelle

3. Get a 24/7 sales hub

With a virtual try-on solution, you get a non-stop sales platform, offering global accessibility and breaking geographical and time constraints. This approach allows customers to explore products at their convenience, leading to more informed and significant purchases – and a significantly increased reach.

4. Ensure consistency across channels

Ensuring consistency across channels is crucial in today’s fragmented media landscape. By implementing AI and AR technologies, beauty brands can maintain a uniform and cohesive presence across all sales and marketing channels, whether online, in-app, or in-store.

This reinforces brand identity, making your brand easily recognizable and memorable to customers regardless of the platform they use. A consistent brand experience helps in building trust and reliability, and creates a seamless and integrated shopping experience, ultimately strengthening customer loyalty.

5. Future-proof your business with technology

Staying abreast of technological advancements is essential in an industry as dynamic as beauty and cosmetics. Keeping your brand relevant and innovative requires not only awareness but also the integration of the latest AI and AR capabilities.

These technologies evolve rapidly, and by continuously updating them, your brand can respond more effectively to the ever-changing consumer demands and preferences. Moreover, you will establish yourself as a trendsetter in the beauty industry and demonstrate a forward-thinking mindset.


Try Arbelle beauty AR today


try virtual makeup mirror live_Arbelle

In conclusion, the cosmetics industry report for 2024 illuminates a clear path forward, guided by the innovative use of AI and AR technologies. As we have seen, these technologies are not just shaping the future of beauty; they are essential tools for brands to connect, engage, and grow in an increasingly digital world.

Arbelle’s example as a leader in virtual makeup try-ons is a testament to the transformative power of AR in enhancing customer experiences and driving business success. As the beauty industry continues to evolve, it becomes imperative for brands to adopt these technological advancements not just to stay competitive, but to lead the way in innovation and customer satisfaction.

So, take the leap into this new era of digital engagement! Embrace AI and AR to redefine your customer’s shopping experience, improve product development, and build a brand that stands out in the crowded beauty market.

The future of beauty is here, and it’s time to be a part of it.

Connect with us to discover how Arbelle can revolutionize your brand’s approach to beauty tech and help you craft a future-ready strategy.

Get started with Arbelle

Contact us today and we’ll help you create the optimal beauty AR experience for your app, website, or smart mirror.