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Significant COVID-19 Impact on Waterless Cosmetics in FMCG Industry


COVID-19 Impact on Waterless Cosmetics in FMCG Industry

INTRODUCTION
Waterless beauty, also known as anhydrous beauty, refers to cosmetics that are made without the use of water. It first gained popularity in South Korea (interesting fact: it's also where waterless toilets were invented), but not as an environmental movement; rather, it was used to boost the power of beauty products by concentrating undiluted chemicals at a higher concentration. Cosmetics with less water have a lower risk of bacterial growth, a longer shelf life, and require fewer preservatives. The COVID -19 has mixed outcomes of patterns for the cosmetics manufacturers in developing countries. The impact of COVID-19 on the cosmetics industry can be seen in the product portfolios which are offered by manufacturers in the cosmetics market.
The beauty industry was expanding before the COVID-19 epidemic, thanks to bettering people's lifestyles with more discretionary income and a growing concern for looks. The beauty business was not only continuously increasing with loyal customers, but it was also one of the most resilient, having recovered from the 2008 financial crisis in just two years.

IMPACT OF COVID-19 ON COSMETICS CHAIN
During the pandemic, lockdown and emergency measures hindered the delivery of raw ingredients to the cosmetics sector. The natural ingredients price increased, those export from developing countries due to increased freight prices and longer transportation delays. As a result of the epidemic, some cosmetic and ingredient companies are establishing regional and local supply networks.
The supply chain affects not only manufacturers, distributors, and customers, but also labor-intensive cosmetics plants. Many plants' production was decreased, stopped, or temporarily halted as a result of workers who were found to be COVID-19 positive. COVID-19 has impacted the supply chain the most as due to the lockdown in the several countries the import and export activities become difficult and also the demand has reduced which has impacted the demand of the cosmetics products in the market. Several plant implementations have gone on hold and also transportation of the cosmetics items from one nation to another is very difficult due to such a situation.

STRATEGIC INITIATIVES DURING COVID-19
Since the introduction of the virus, consumer demand for healthy and natural products has increased; many consumers are purchasing such products to improve their immunity.
The unwillingness of cosmetic manufacturers to discuss the changes that could arise over the next few years maybe because they would be the ones most affected. Owing to the potential for job losses, there might be some reluctance to talk publicly.
Following the Covid-19, cosmetics producers are required to prioritize health and safety as well as worker well-being. Factories, where social distancing and other protective measures are more difficult to enforce, have become hotbeds for the virus, so factories are looking at a variety of options to ensure worker safety while keeping production moving.
For Instance:-
• As of June 2020, Unilever started its operation in hygiene products in the Beauty & Personal Care division. It also assisted people in maintaining their hygiene as improving their well-being remains a top concern for the company to create goodwill in the present market.
• As of March 2020, Unilever one of the bigger beauty brands invested millions of dollars towards the fight against the coronavirus. Unilever had announced the release of €100 million worth of soaps, sanitizers, bleach, and meals which helped to fight against the pandemic situations.
• As of April 2021, Procter & Gamble took steps to fight against coronavirus through a new program named #PG PGSurakshaIndia in India. The company donated 10 lakh vaccine doses for 5 lakh citizens worth Rs INR 50 Cr.

IMPACT OF COVID-19 ON THE COSMETICS/ BEAUTY PRODUCTS INDUSTRY
The economic impact of the COVID-19 pandemic is projected to be far worse than any recession, and the beauty business will be no different. It is being impacted on two fronts: production and distribution are being interrupted as a result of global lockdowns, and sales are reduced as a result of consumers losing disposable income as well as closing down of cosmetics stores as a result of lockdown procedures. According to estimates, the worldwide beauty industry's sales could drop by 20% to 30% by 2020 as a result of the epidemic.
The beauty sector, on the other hand, is likely to show the same durability and adaptability it has shown in previous crises. To tackle the illness, many beauty firms are turning to hand sanitizers and soaps. Even though consumers aim to spend less on beauty goods shortly, they still intend to spend more on beauty items than other amenity categories such as clothes.
Before the epidemic, the beauty sector was one of the few that still relied heavily on in-store sales. Due to COVID-19, stores selling beauty items were forced to close, resulting in a 30 percent market share loss. Even if internet sales increase by 20% to 30%, the loss of in-store sales will not be compensated for. The varieties of beauty products on the market are also evolving. Since social separation has become the new normal, sales of fragrances and cosmetics have plummeted. Items for self-care and pampering that may be used at home (skincare, haircare, nail care, and bath products) have witnessed a surge in sales.
The expectation that people will wear masks even after they are released from lockdown predicts an increase in mask makeup. Asian beauty trends, such as point makeup, are predicted to gain demand as people have become more acclimated to utilizing face masks regularly.
According to experts, it is expected that macro-categories of color cosmetics, such as concealer and eye makeup (eyeshadow, eyeliner, and mascara), will grow in popularity. It also advises base makeup formulators to make sure their goods can withstand using masks.

CONCLUSION
With the popularity of Asian beauty trends, the growth of e-commerce for beauty items is projected to continue. Despite the 2020 worst years for the beauty industry, the beauty industry is predicted to stay profitable in the long run because it is still regarded as an important aspect of people's well-being.
Today the spread of the novel coronavirus has triggered significant market damage across the world. Most businesses have stopped immediately and the effect of the pandemic on cosmetic manufacturers is not yet clear. The towns are closed down, and social distancing has become a modern norm.
Read more COVID-19 Resources

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