• By 2025, many supply chains may shift from global flows of goods and services to national, regional, and local networks of buyers and suppliers.

• Over the next five years, McCleary predicts supply chain evolution will include the growing adoption of cutting-edge technologies—like artificial intelligence (AI) and machine learning (ML)

Technology

• Brands will use 3D printing to quickly produce prototypes, custom clothing. This will reduce lead times, lower production costs, and enable more sustainable manufacturing practices by minimizing waste.

• Smart fabrics will be integrated with embedded sensors will be able to monitor body temperature, heart rate, or movement, providing both functional and health-related benefits.

• Some brands may even use AI to generate completely new designs based on historical fashion data and customer feedback.

• Gen AI’s Creative Crossroad.

• After generative AI’s breakout year in 2023, use cases are emerging across creative industries, including fashion. Capturing the value of this transformative technology in 2024 will require fashion players to look beyond automation and explore its potential to augment the work of human creatives.

Marketing

• By 2025, consumers will increasingly demand transparency and accountability from fashion brands, expecting them to uphold fair labour practices, sustainable sourcing, slow fashion and cruelty-free production methods.

Industry Challenges

• Fast-fashion competition will likely become even fiercer in the year ahead. Challengers, led by Shein and Temu, are changing tactics around price, customer experience and speed. Success for disruptors and incumbents will likely hinge on their ability to adapt to evolving consumer preferences, while navigating regulations that may impact the industry.

• Upcycling

• Sustainable fashion - portrayed through the special piece of Stella McCartney's Fallabella bag donation to the museum. To showcase how luxurious fashion/ accessories can be sustainable

• The usage of yarn and fabrics - in the early stages from being collected to different forms that the material holds to final forms in regards to fashion pieces and furniture items

• The evolution in technology - portrayed through a collection of older and newer technology models

• A money count piece - illustrated on an LED light device to demonstrate how much has been invested in sustainability

• Efforts to democratise skin tech started with sonic facial brushes in the early 2000s

• It’s no wonder the global beauty-device market is expected to reach around $236bn by 2030

• Nasa developed LED technology in the 1990s to enhance plant growth and decrease wound-healing time in space. It was adopted by the skincare industry in the early 2000s.

• The beauty industry was one of the first to adopt artificial intelligence (AI) and augmented reality (AR) solutions as a way to solve consumer pain points, like hygiene and waste that come from community testers and samples

• This hyper-engaged virtual skin diagnostic not only boosts confidence for skincare purchase decisions, but it enhances a brand’s ability to introduce personalization along the skincare journey, delivering more impactful shopping experiences that drive sales

• Introduced a unique opportunity across dermatology and medical spa field

• AI Skin Tech as a Gateway to Skincare Personalization

• AI Skin Tech to Understand Skin Health

• AI Skin Tech for MedSpas and Skincare Professionals

• AI Skin Tech to Educate and Entertain

• Implementing AI can facilitate minimising errors, making data-backed informed decisions, accelerating operations, and improving scalability

• The global artificial intelligence (AI) in beauty and cosmetics market is expected to reach US$ 13.34 billion by 2030, with a promising compound annual growth rate (CAGR) of 19.7% from 2021 to 2030

• According to a survey, customers were three times more inclined to buy cosmetic goods if they were digitally tried on

• Sampo Parkkinen, CEO and Founder of Revieve, says: “AI-powered platforms provide engaging experiences and actual value in helping consumers find what they are looking for, providing education and guiding them throughout the shopping journey.

• The shift toward sustainability in the cosmetics industry is illustrated by the burgeoning market for natural ingredients, projected to expand from USD $642 million in 2022 to USD $1,095 million by 2030.

• Over 40% of shoppers prioritizing natural components in their beauty and personal care products

• Substituting ingredients such as petrolatum, dimethicone, and phenoxyethanol with sustainable counterparts can significantly influence the supply chain of raw materials, ingredient interactions, cosmetic formulations, and the quality of the final product

Natural emollients

• Natural emollients account for the largest share in value and volume for the natural cosmetics ingredient market, with the skin care segment holding the largest revenue share (38.7%)

Natural solutions for enhanced safety and lifetime value

• The industry has relied on synthetic preservatives like paraben esters, formaldehyde donors, and phenol derivatives

• These compounds have raised health concerns, including endocrine disruption and potential carcinogenic effects, prompting regulatory actions and a reevaluation of preservative systems

Key takeaways:

• The global natural and organic cosmetics market size is projected to be worth around USD 103.23 billion by 2034 from USD 41.65 billion in 2024, at a CAGR of 9.40% from 2024 to 2034.

• The natural and organic cosmetics market is growing due to increasing buyer’s awareness of natural and organic products, seeking products that are safe, eco-friendly, and sustainable.

• Asia Pacific is expected to attain the fastest rate of growth in the market during the forecast period

Key takeaways:

• Asia Pacific is expected to attain the fastest rate of growth in the natural and organic cosmetics market during the forecast period

• An organic cosmetic is a natural cosmetic, as defined, that contains a minimum percentage of ingredients produced from organic agriculture, which organic production is feasible and must be organic to at least the tune of 95%.

Natural and organic cosmetics market growth factors

• Increase in spending on the purchase of health and hygiene goods

• Increase in the frequency of skin issues caused by synthetic components in beauty products and cosmetics

• Increase in the income of the population.

• Chemical-free personal care products enhance awareness

• Increasing sales through e-commerce will support the conception of market revenue during the forecast period

• Consumers started influencing the skin care market in the 1980s when they began choosing natural skin care products over others, and began asking more pointed questions about how products were made and what they contained.  

• Consumers have taken it upon themselves to demand ethical, sustainable sourcing and ingredients; they may prefer pure, natural oils and artisan soaps over the complex, chemically-dense ingredients lists on many products. 

• 71% of today’s consumers expect to receive a personalized experience when they shop

• Companies that excel at personalization generate 40 percent more revenue from those activities than average players

• 80% of consumers are more likely to make repeat purchases from a company and recommend that company to a friend or family member if the company provides a personalized experience

• 58% of shoppers say they are more likely to buy from a business that offers an online quiz to recommend specific beauty products for them

• 45% of respondents say they are more likely to purchase from a business that offers a virtual reality or AI experience that allows them to try out a product online

• The global LED skincare market is projected to surpass $30 billion by 2027

• Driven by an 80% year-over-year increase in searches for light therapy masks on Google and TikTok

• Innovation in injectables and at-home aesthetic devices is on the rise, speaking to a growing demand for more fuss-free aesthetic solutions.

• Beauty technology is evolving to offer improved at-home tech as well as safer alternatives to invasive treatments.

• Consumer’ attention on their appearance has increased

• An increasing number of dermatologists, celebrities and social media influencers demonstrating the benefits of these products online --> driving demand

• AI-driven skin analysers, smart mirrors and custom skin scanners are cutting-edge devices probe deeply into the skin’s distinct characteristics to customise skincare regimens with unmatched precision

• Smart skincare devices, powered by AI, machine learning, and thorough biometric analysis, are at the forefront of this revolution in the face of changing beauty and wellness trend

• The frontier of skincare is being reimagined and reshaped by an array of top devices and tools, marking a new era where technology meets personal care in the most intimate way

• The rise of biobased cosmetic ingredients is largely driven by a growing consumer demand for natural and eco-friendly beauty products.

• Consumers are becoming more aware of the potentially harmful effects of synthetic ingredients in cosmetics on their health and the environment.

• Biobased cosmetic ingredients are derived from natural sources such as plants, minerals, and microorganisms

• Are an alternative to synthetic or fossil-based ingredients, which are often petroleum-based that have been linked to negative environmental and health impacts

• There are also increasing regulatory pressures on the cosmetic industry to reduce the environmental impact of their products

• This has resulted in a bigger demand for biobased ingredients to meet these requirements without sacrificing market shares

• Small brands that have been the first adopters of the clean beauty movement

• Benefits of the natural ingredients in skincare products drove a significant increase in biobased skincare products, as consumers are paying more attention to their apperance, following the COVID-19 pandemic in 2020

• People from 50 to 70 years old are responsible for 27% of spending, around $7 trillion each year in the nine product categories we researched

• Use Exhibit 3 graph - distribution of spending by category of mature consumers --> relevant for anti-aging paragraph

• Safer and cheaper to produce, source, and ship compared to their chemical alternatives

• Their low cost is due to the abundance of raw materials in Southeast Asia with modern biorefinery technologies and safety owing to the bio-based processes such as fermentation that are not only safe but also less energy-intensive

• Globally, 25% of women over 55 say they didn’t think about using anti-ageing products until they were in their 40s

• 50% of today’s 18- to 24-year-olds already considered an anti-ageing product in their teens

• Hyper-personalization refers to the practice of using data and advanced technologies, like AI, machine learning, and analytics, to deliver highly tailored and individualized experiences to customers.

• The era of "one size fits all" was quick to be replaced by the paradigm of personalization, which emerged with the rise of marketing technology back in the early 2010s

• The Asia Pacific region is leading the natural skincare market geographically due to:

1. A rising millennial population

2. A growimg awareness of natural products

3. An increasing spending on branding and advertising campaigns

• Hyper-personalized offers the chance to more effectively engage with consumers, strengthen current connections and build new ones, and enhance the customer experience as digital marketing grows more competitive

• AI can analyse a person's skin type, tone, and other characteristics to suggest the best products for them.

• The technology can also enable virtual try-ons of various items, allowing customers to see how they look before purchasin

• The global personalized/customized skin care market was estimated at USD 25.1 Billion in 2024

• The market is expected to grow from USD 26.6 Billion in 2025 to USD 47.4 Billion in 2034 at a CAGR of 8.3%.

• Personalized/customized skin care market is the fastest-growing market in the Asia-Pacific region.

• The trend is fed by economic growth and the rise of a middle class in countries such as China, India, and South Korea

• the demand for skincare solutions addressing problems such as acne, pigmentation and aging is expected to lead the region's middle-class population to rise to 3.5 billion by 2030

• Japan and South Korea are on the forefront of beauty technology, with digital platforms that provide customized recommendations for skincare products.

• Consumer behaviors are influenced by the popularity of k-beauty trends, increasing demand for customizable skincare products.
   

• 76% of consumers desire customized options

• Only 23% of brands currently offer them.

• The primary hurdles include the financial investment required and achieving economies of scale

• 42% of customers expressed interest in customizing cosmetics, a rise from 30% in 2016

• 72% of buyers are willing to pay extra for cosmetics that are tailored, demonstrating the significance of customisation

• The market growth mirrors the increasing consumer interest in personalised skincare solutions, as personal care brands continue to innovate products relating to hyper-personalisation

• In 2018, L'Oreal launched SkinConsult AI, an AI-powered skin diagnosis platform based on data gathered from 15 years of research in skin ageing.

• Its unique algorithm was developed with dermatologists and with their Exposome medical board, to analyze clinical signs of ageing and ageing accelerating factors.

• In 2020, Vichy took Skin Exposome Science one step further by launching Vichy Connect

• A series of livestream talks hosted by multi-disciplinary medical experts which focus on the latest dermatological topics such as skin Exposome factors, to help women understand how to transform the future of their skin.

• The sensor that tracks pollution, humidity, and pollen was released in partnership with Apple

• Sold in Apple Stores, underscoring the crossover between techbnological retail and beauty

• The “My Skin Track UV”, a clip-on sensor that detects UV exposure

• It notifies users using a smartphone app, was introduced by L’Oréal in 2018

• The impact of wearable technology on skincare is a new development, beginning to emerge in the 2010’s

  
  

• As of 2019, just over 3% of adults globally had ever used a skin-tracking device

• Suggesting that the great majority of beauty customers have not yet interacted with this market

• The industry’s respoonse has been educational, based on early-lauches like Neutrogena’s “LED Therapy Mask”

• A large number of beauty wearables entered the market in mid 2010’s at high prices without offering complete functionality

• Making them appealing to a select few wealthy, tech-savvy consumers

• The majority of consumers took a wait-and-see approach

• Therefore slowing down the sales of wearable technology

  
  

• Around that time, the beauty sector started experimenting with tech-enabled skincare

• The first wearable technology specifically designed for beauty was introduced in 2016,

• Was a turning point, when L’Oreal debuted a “my UV patch” which was tulted as the first-ever skincare wearable

• By the late 2010s, new beauty tech prototypes were frequently displayed at large consumer electronics shows

• Indicating that the trend had progressed from a trend to an emergent commercial segment

• Affected the Asia-Pacific region, as a leading geographic area for this industry trend

• It saw an increase in disposable incomes and an emphasis on self-care

• Encouraging consumers to invets in high-end skin care

• The industry analysts predict a stedy growth of the wearable skinacre trend, with broader skincare devices trippling in market size from 2023 too 2033

• 
  

• By 2035, it is forecasted that an approximate number of 20% to 30% of conusmers will use skin monitoring or treatment wearable as a part of their daily routines

• The Asia-Pacific region is expected to drive a large portion of growth at a faster rate, in comparison to North America and Europe

• 39.3% revenue share in 2023

• Due to its high population and early adoption of technology innovations

• The beauty and personal care market is expanding at a rapid rate. Due to the constant changes in consumer demands and technology breakthroughs, the beauty market is very forward-looking

• This technology exemplifies how beauty firms continuously push the boundaries to predict and meet changing consumer needs, and it represents the future of individualized beauty

• In 2006,  Stella McCartney , a luxury fashion company, introduced her first skincare line which had to be discontinued at the time due to regulatory challenges and organic labelling in the United States

• 
  

• Pursuit of longevity has infiltrated wellness and health and beauty spaces, and consumers relating to their cellular age more than their chronological one instead

• It is predicted that for the next 20 to 30 years, the industry will be driven by hyper-personalisation, artificial intelligence, biotechnology and regenerative medicine, introducing aesthetic treatments tailored to individual genetic makeup, lifestyle and environment

• After 2050, experts predict that ageing will no longer be a concern based on the advancements of hyper-personalisation, organic-based products and wearable technologies

• ageing will be about having a choice, as the industry will shift from fighting ageing to designing how consumers age and look

• Stella McCartney relaunched a skincare line “STELLA” by Stella McCartney in 2022, featuring 3 products; a cleanser, a serum and a moisturiser, all formulated with at least 99% of natural, cruelty-free and vegan ingredients

• Recently, well-known fashion houses like Dior, Yves Saint Laurent and Chanel, have expanded into the skincare market based on the increased consumer demand and competition in the skincare segment

• Many people believe that dopamine is released in response to a reward.

• This creates a cycle where a person sees a product and plans to buy it in the future.

• The anticipation of obtaining the product generates excitement and motivation, causing dopamine to spike

• As the person gets closer to purchasing the product, the anticipation increases, resulting in a higher dopamine rush.

• Need for belonging and recognition

• The growth of the three dominating trends of the personal care market is created by the ageing concerns of Millennials and Gen Z

• The expectations for how the fashion industry will evolve in a year are expected to worsen for 2024, in comparison with 2022 and 2023 drastically

• Western Europe is expected to worsen by 11%, while the most compromising regions are: India, Asia Pacific and the Middle East

• Pressure on household budgets is likely to prompt a decline in discretionary
  spend

• Brands and retailers will likely need to confront a further wave of low consumer demand in
  some key markets

• Suppliers may feel the amplified effects of this dampened demand even more as it echoes
  along the supply chain, leading to underutilised capacity

• Revenue growth in this environment is likely to be driven by price rather than volume, and
  businesses will need to plan price increases with care and precision to avoid alienating
  cash-strapped consumers

• Due to the geographic footprint and structure of fashion’s supply chains, it is especially vulnerable to extreme
  and increasing climate volatility

• Consumers are shifting towards homes, interior decors, accessories rather than garments and footwear

  
  

• Biotechnology combines biology (bio) with chemistry (tech) to create skincare ingredients that are grown in a lab, but are, crucially, identical to what is found in nature and with a lower environmental impact

• Scientists grow cultures of plant cells that have been tweaked to produce a specific ingredient in petri dishes of bacteria, yeast and algae

• The New Nihilists find meaning through optimistic nihilism and activism amid systemic failure.

• The Reductionists seek simplicity, rebuilding local communities over digital networks.

• The Time Keepers reject time-anxiety and “snippet culture,” prioritising leisure and presence.

• The Pioneers are experimental consumers reshaping life and commerce through flexible, hybrid physical-digital models

• Dissociation, idleness, radical acceptance, and neo-altruism are the primary emotional and behavioural undercurrents shaping consumer behaviour across regions

• Consumers increasingly value time as a premium resource. Brands must offer tools, services, and experiences that optimise time use or create meaningful time engagement.

• Consumers are moving away from blind efficiency and “hustle culture” towards intentional consumption, ethical quick-commerce, and “good growth” models that benefit workers and communities.

• Regenerative finance, ethical retail DAOs, co-op economies, and Web3 innovations are shaping the future of commerce with a strong emphasis on fairness, ownership, and social impact.

• The rise of radical acceptance and anti-perfectionism is transforming the wellness sector. Consumers are rejecting performative self-care in favour of conscious hedonism and inclusive mental health solutions.

• Neo-altruism marks a pivot from individual self-optimisation to collective care. Initiatives like delivery co-ops, community bike buses, and care villages reflect this shift in values and expectations from brands and society.

• Technological and cultural shifts are shrinking generational spans and blurring boundaries between cohorts. Brands must move beyond age-based segmentation and instead engage with micro-generations like Xennials, Zillennials, and Zalphas

• These in-between groups share blended values and habits. Marketing success depends on understanding their nuanced needs and crafting campaigns that reflect their hybrid identities

• Age-agnostic branding is gaining traction. Consumers across all age groups are embracing nostalgic, playful, and rebellious behaviours , challenging ageist stereotypes and redefining ageing as joyful

• Rising exposure to adult content and social comparison is accelerating the psychological ageing of children. Brands are responding with protective measures, from age restrictions on products to campaigns promoting online safety and self-esteem

• People are reaching life milestones at different paces due to cultural and economic conditions. Design should cater to life stages, not age groups.

• The rise of interest-based communities across platforms signals a move away from broad demographics. Future-proof branding will be inclusive, decentralised, and designed for shared passions rather than fixed age brackets

• Integrate technology into fibres, textiles, or garments

• Include accessory-based devices such as smart watches, glasses, and activity trackers: connected clothes,
  smart clothes, e-textiles, and digital textiles

• Most common examples: Smart watches, rings, clothing, advanced medical tech & head-mounted displays

• Challenges: abandonment rate of smartwatches is 29%, and 30% for fitness trackers

• Smart textiles advantages:

  • Growing demand for wearable technology across healthcare, sports, and fitness industries. Increasing emphasis on energy-efficient textiles and sustainability drives smart textiles market expansion.
    • Advancements in flexible electronics and textile integration technologies enable the development of smart fabrics with
    enhanced functionalities.
    • Growing consumer interest in health and fitness monitoring drives innovation in smart textiles.

  • Smart textiles disadvantages:

    • High production costs and complex manufacturing processes limit the widespread adoption of smart textiles.

    
    

• The global wellness economy is valued at $5.6 trillion and continues to grow across sectors such as food, fashion, fitness, and tourism. Consumers are prioritising health in response to mental health crises, chronic illness, and ageing, making wellness a stable spending category even amid economic uncertainty

• Wellness is shifting from gym-based workouts to playful, inclusive, and skill-driven sports. With rising participation in niche and mainstream athletic events, brands are embracing “joyful movement” and redefining health aesthetics to include all body types

• Advances in AI and wearables are driving a new era of personalised, data-driven health solutions. Devices now track everything from glucose to cancer risk, but this raises concerns over data security and consumer pressure to constantly optimise their health

• Rising temperatures are influencing sleep, hydration, and illness. Innovations like wearable air conditioning and climate retreats (e.g., solastalgia spas) are emerging, alongside the rise of “coolcations” and wellness tourism in cooler or therapeutic environments

• Governments are shaping access to wellness, from restricting reproductive care to promoting medical tourism. Brands are expected to take political stances, support healthcare access, and help consumers navigate cross-border medical systems

• With Baby Boomers increasingly investing in wellness, opportunities are growing in retirement-friendly residences, mobility-adapted luxury wellness, and multigenerational longevity care. The focus is on dignified ageing and age-inclusive product design