Outdated Development, Manufacturing Models Holding Beauty Industry Back: Study

As demand for new products surges, beauty brands are confronting an innovation crisis, costing the industry billions in lost revenue annually. That’s because outdated development and manufacturing models are holding the industry back, as outlined in “The $86 Billion Wake-Up Call for Beauty Brands,” a new report published by Atelier in collaboration with Accenture.

In fact, digital acceleration, evolving consumer expectations, and mounting supply chain pressures are forcing brands to rethink how they bring products to market.

“The $86 billion opportunity represents a fundamental reimagining of how beauty products are created and delivered,” says Nick Benson, founder and CEO of Atelier. “Composable manufacturing turns brittle supply chains into agile, resilient delivery networks.”

Key takeaways:

·        Only 13% of companies report having supply chain capabilities that fully support their business priorities, and just 11% have implemented architected and interconnected systems, leaving most brands with a critical choice: transform manufacturing approaches or lose market share to more agile competitors.

·        64% of consumers want brands to respond faster to their needs, yet 59% of companies take over a year to adapt.

·        From January to May 2024, just 46% of launches were net-new products, compared to 63% in 2015.

·        59% of brands still rely on sole-sourced suppliers, increasing vulnerability.

·        79% of executives struggle to effectively leverage consumer data to offer personalized experiences.

·        Brands creating enterprise-level value through composable manufacturing are 4.5 times more likely to have invested strategically in agentic architecture.