The Rise Of The Independent Beauty Industry

Hi everyone! Kaylee here. I’m the Founder & CEO at Blanka , a platform that has enabled thousands of entrepreneurs to launch their branded beauty lines. As an entrepreneur building a platform?for entrepreneurs, I’m sharing some thoughts on what it’s like to build a #BeautyTech startup.

Think about the last time you shopped for your beauty essentials. Whether you went to your local Sephora, department store, or shopped online, you probably saw hundreds of options. There’s a new brand being launched every day. The beauty industry is growing with no signs of slowing down.

As of 2023, the beauty industry is worth $571.1 billion and is projected to grow to $663 billion by 2027 (Oberlo). This growth is not just for the big players; it also reflects the growth of a new contender: the independent beauty space. Smaller companies are taking the reins and getting a piece of that pie.?

How is it that small brands with limited resources are giving multi-million dollar corporations a run for their money? We have to take a step back and see the factors that created a space for #indiebeauty to thrive.

First, What Exactly Is an “Indie” Brand?

There are SO many definitions of an indie brand out there. Here is how we define an independent brand at Blanka: an independent beauty brand (or "indie brand") is an independently owned and operated company, without the financial backing of a major corporation. These brands are usually started by passionate entrepreneurs who have identified a gap in the market.

How Did Indie Beauty Become a Thing?

Until a few decades ago, the beauty industry was controlled by a handful of large corporations such as L'Oréal, LVMH, Coty, and Estée Lauder. These corporations own dozens of brands you can see anywhere you shop for cosmetics, giving the illusion of choice to consumers, when in reality, they were only “choosing” between 9 companies. With vast resources to put products on shelves and ads in magazines, smaller brands hardly had a chance to break into the market.?

This has changed in the past decade. The rise of social media and e-commerce has lowered the barriers to entry for smaller brands, leading to the growth of the independent beauty space. But, what triggered this shift?

1. The Demand for “Clean” Cosmetics

Following the rise in popularity of the clean-eating movement, people channelled that energy into the products they used—makeup, hair, and skincare. Consumers questioned the ingredients found in their cosmetics and became more aware of the potential impact on their health and the environment; the demand for “natural,” and “non-toxic” cosmetics skyrocketed. Small companies and visionary entrepreneurs were quick to respond to this demand by offering alternatives with natural ingredients along with sustainability initiatives.?

2. E-Commerce as a Force to be Reckoned with

The digital landscape has increased the visibility of smaller companies (not limited to the beauty space). Now, brands don’t need a retail space to sell to their audience; a simple Etsy store or a more sophisticated Shopify website can bridge that gap. Shopping for your favourite lipstick can be done in between Netflix episodes without getting up from your couch.

Shopping for cosmetics is a sensorial experience where texture and smell play a big role in the decision-making process of a buyer. Retail facilitates that experience. In fact, before 2020, 85% of people still preferred an in-store shopping experience (McKinsey & Co.). Of course, that changed significantly during the Covid pandemic. According to Harvard Business Review, 43% of people are shopping more often online for products they would have previously bought in stores.

Parallel to the rise of e-commerce came social media, which offered beauty brands a free platform to communicate with their audience and build community.

3. Consumer Demand for Authenticity and Uniqueness

People crave authenticity and uniqueness, which they’re not getting from big companies. This is where the independent beauty space is shining. Passionate and determined brand founders are creating products with intention, and challenging the practices of conventional brands—something that has resonated with the Millennial and Gen Z generations.?

Social media has been a key vehicle in the success of indie beauty. Instead of using it as an advertising platform, indie brands leveraged the power of community social media offers. Additionally, the early beauty influencer era (circa 2013), gave indie brands a bigger platform to promote their products. Strategic partnerships with ambassadors that shared values gave brands with a limited advertising budget access to engaged and loyal audiences.

The Advantage of Indie Beauty?

Innovation and Adaptability

Indie brands have the ability to take more risks. With fewer stakeholders and only an audience to please, indie brands are free to experiment and innovate.?

But here’s the thing: sometimes the biggest breakthroughs come from the tiniest frustrations. That’s where indie beauty brands excel. Where a big corporation might see risk and no return on investment, indie brands see opportunity.

Makeup brand Tower 28 embodies innovation in action. Founder, Amy Liu couldn’t find gentle cosmetics for her chronic eczema. Even the “clean” ones made her skin irritation worse. So, Amy created Tower 28 Beauty, Inc. as a solution that goes beyond clean. Today, it’s the only makeup brand that follows the National Eczema Association’s Ingredient Guidelines, making it a gem for even the most sensitive skin types. On top of that, she made sure to give the brand a fun and approachable identity that appeals to the Gen Z crowd. Their products have even gone viral on TikTok!

Value-Driven Principles

With more choices than ever before, consumers have the option to choose based on their values. According to a global study conducted by Havas Group (2019), 77% of consumers buy from brands that share their values. The indie space is more receptive to this demand and is naturally better at it. With an engaged founder, indie beauty appears more humanized than its larger competitors. Transparency is appreciated and encouraged as people become quicker to see through marketing and PR stunts made in an attempt to connect.?

Diversity

For the longest time, the cosmetics industry has reinforced narrow beauty standards that exclude countless individuals from feeling seen and celebrated. Not anymore.

A large segment of indie beauty brands are founded by underrepresented individuals in this industry, including BIPOC founders and members of the LGBTQ+ community. These brands provide a platform for those who were previously excluded, allowing them to showcase their creativity and represent their communities in a way that truly celebrates diversity.?

For example, Kulfi Beauty founded by Priyanka Ganjoo was born out of a frustration with eurocentric beauty standards and a lack of makeup that would match deeper complexions. Kulfi offers fun and vibrant makeup that celebrates South Asian culture and beauty. More than that, Priyanka has created a space where underrepresented voices can share their stories. This transparency and uniqueness have given the brand a cult-like following.?

In a way, independent beauty has democratized the beauty space—offering options by the people for the people. Indie beauty is challenging the industry and posing the question: What if the future of beauty wasn’t in the hands of big corporations but in the hands of people with bold ideas and creativity?

The Future of Indie Beauty

The independent beauty space is exciting! It’s a dynamic and adaptable industry that’s only getting bigger and better. As the industry and consumer demand evolves, indie beauty will continue to seize opportunities to thrive as it has masterfully done for the past decade. We’re already seeing shifts in this space with new AI to enhance customer experience, and demand for niche products that cater to specific subgroups.?

With more resources available, launching a brand is more accessible than ever before. Through Blanka , we are both powering and empowering the next generation of beauty entrepreneurs with a platform that has centralized everything you need to launch a private-label makeup brand. Want to start a makeup line or skincare line? Blanka is the wholesale hub and fulfillment partner for branded beauty.?

This space has no plans of slowing down. Independent beauty isn’t just shaking up the beauty industry, it’s paving the way for a whole new era of beauty. An era with more consumer involvement, innovation and vision. At Blanka, we are excited to be a part of this beauty revolution.

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