As the beauty industry continues to evolve to better meet consumer needs, preferences are shifting towards science-supported ingredients, streamlined routines and sustainable solutions. With skincare literacy increasing, brands are adapting their strategies to meet the demand for transparency, effectiveness and multifunctional products.
From innovating ingredients to evolving pricing strategies, manufacturers are finding new ways to attract more and more informed audiences.
We spoke to Melissa Munnerlyn, co-founder and CMO of Daash Intelligence, about other active ingredients in skin and body care products, about insights into the data behind the rise in popularity of hyaluronic acid and other active ingredients.
Insights in the ingredients: Hyaluronic acid and elevated activity
“To date, products with the name ‘hyaluronic acid’ represent 9% of Prestige’s beauty sales and 12% of the total units sold in categories such as makeup, skincare, scent, hair, bath & body,” Munnerlyn told Cosmetics Design. Especially in the skincare and makeup segment, she unravels, and hyaluronic acid accounts for 16% of fame sales and 17% of units.
Additionally, she said the average price for prestige makeup and skincare products featuring hyaluronic acid in their name is $4.25 less than the industry average of $33.00.
Consumer demand for ingredients with clinically proven benefits is to promote the increase in vitamin C, niacinamide and peptides, whose popularity “surged due to an increased demand for clinically proven multifunctional activity that simplifies routines while providing visible results,” explained Munnerlyn. “As skincare literacy increases, brands highlight key elements of packaging, making it easier for consumers to make informed choices.”
For example, she states: “Like normal, it played an important role in democratizing science-backed skincare, making power plants that include vitamin C, niacinamide and peptides accessible to more audiences.”
Product Category Growth: Market-Learning Serum
According to data from Daash Intelligence, the skincare category continues to grow strong, with Face Serums going beyond the base of unit share. Moisturizers and serum currently account for nearly 11% of the total unit share, with an average price range of $61.50.
“Pricing strategies play an important role in shaping consumer choices within the serum categories facing prestige moisturizers and faces, balancing perceived value, effectiveness, and accessibility,” Munnerlyn says.
The average price range in this category considers these products as the “premium tier.” She described it as “where consumers expect visible results, high quality ingredients, high brand experience.”
As a result, she continues under the current economic situation, saying, “Brands must balance premium pricing with perceived effectiveness by changing spending habits that affect consumers.” The successful strategies she recommended based on the data include “trends such as subscriptions, personalized skincare, and refillable packaging; [which] We are restructuring our pricing strategies for these categories. ”
Consumer preferences and seasonal trends
Seasonal demand fluctuating continues to shape ingredient preferences, particularly through hydration in winter and brightening in summer, Munnerlyn continued. “Post summer vitamin C and niacinamide help repair UV-induced pigmentation, but hyaluronic acid remains a year-round staple diet,” she explained.
Serum is expected to remain a dominant category in the future, but new trends could reshape the market. “Consumers are drawn to treatments of multifunctional hybrids, personalized skincare and barrier support, minimizing the need for layering,” Munnerlyn says.
“While innovations such as solid serums, ampoules and advanced delivery systems are gaining momentum, sustainability encourages interest in waterless, intensive systems.
Manufacturers’ Innovation Opportunities
Munnerlyn is looking to innovate in the field of serum and moisturizers, and should focus on hybrid formulations, sustainability and ingredient transparency. According to data from Daash Ingelligence, “Trends include multitasking skincare, replenishable packaging and waterless formats, but encapsulated active and climate adaptation solutions improve effectiveness.”
Therefore, she advised that “brands that blend technology, environmentally friendly designs, and high-performance ingredients will promote the next wave of beauty innovation.”
Furthermore, ingredient transparency remains an important driver of consumer trust. “By sharing the benefits supported by science and providing honest labeling and clinical data, she “shared with expert-supported education and personalized guidance, which highlighted sourcing, efficacy and sustainability,” the brand can promote trustworthiness and consumer trust.
For example, she states: “Drudges are a great example of clear labels and clinical data, as they highlight the ‘Suspicious 6’ exclusion and clear formulation degradation and ingredient integrity. ”
The brand’s success is also supported by its performance results, saying, “In the first quarter of 2025, drunk elephants remained at the highest category growth index.
Future outlook: New trends and sustainability
In the future, new ingredients trends and sustainability-driven product innovations are expected to shape the beauty industry. “Moving skincare trends include formulas focused on bio-retinol and microbiomes, as well as ectaines for hydration and skin regeneration,” Munnerlyn said.
For example, she shows “Tula Skincare’s Bakuchiol Retinol Alternative Serum with plant-based retinol and probiotic and superfood-based skincare products.”
She predicted that a focus on clean beauty and sustainability will also continue to have a progressive impact on the development of ingredients. These efforts “drive the brand towards environmentally friendly formulations, biotechnology ingredients and replenishable packaging,” she predicted.
Other companies are committed to “innovating with water-free products and multipurpose skincare to simplify routines while ensuring effectiveness and transparency.”
“To stay competitive,” she concluded. “Brands must adopt sophisticated delivery systems, ethical sourcing and science-supported clean formulations in evolving beauty situations.”
