AI giving cosmetics industry a makeover
Artificial Intelligence is transforming many industries, including cosmetics, according to the leading market expansion services provider DKSH.
Speaking to the media at the 2024 Beauty Show in HCM City, Roland Kraut, general manager, performance materials, at DKSH Switzerland, noted that AI would be used basically by every industry.
"It starts with the consumers, because the algorithms in mobile phones and social media somehow dictate what users see next," he pointed out.
“If you're interested in a certain topic in personal care, the algorithm will show you a lot about what you want to see. Therefore, the personalisation of the consumer will be very much driven by AI.”
AI offers consumers greater control over their beauty, allowing them to find tailored solutions to their specific needs and desires, according to Kraut.
In the case of producers, AI will help in several areas such as maximising personalisation, discovering new ingredients and promoting sustainable ideation.
AI algorithms analyse data to understand individual skin types, concerns and preferences, allowing brands to offer tailor-made solutions.
Besides, it can be a quick and cost-effective way for brands to analyse and select potential ingredients before assessing consumer interests from vast data.
“AI will do a lot for creation of new materials because it can help in creating new molecules and forecasting a molecule, how it will work.
“It is much more effective now with computer-generated forecasting than it was in the past, where you had to trial and you either failed or did not fail.”
The technology would also help replace synthetic materials with natural materials, he said.
“For us in distribution, it will help us reduce our carbon footprints very much.”
He explained that with generative AI in demand forecasting, the company would only deliver what is needed to the customer instead of transporting a lot of things.
His company uses AI for developing new formulations and forecasting the supply chain.
He emphasised that this technology would continue to shape the future of the cosmetics industry.
The AI-influenced personal care market was valued at about US$3.2 billion in 2022, and is set to grow at around 20% a year to reach US$20 billion by 2032.
According to market research company EuroMonitor International, the Vietnamese cosmetics market is expected to enjoy an annual growth rate of 6% on average to reach US$3.5 billion by 2026.
Tran Thanh Hai, local business line manager at DKSH Vietnam, said in the first half, despite economic difficulties, the cosmetics market saw numerous product launches by local brands.
