Why Active Ingredients Are Becoming More Important Than Brands in the Beauty Market

For a long time, the beauty market was dominated by brands. Packaging, image, and emotional appeal were the key factors determining which products were purchased. But this dynamic is increasingly shifting. Today, consumers are more interested in ingredients, mechanisms of action, and proven results than in brand promises. The focus is shifting from the brand to the product’s functionality.

From Branding to Effectiveness

This trend is closely linked to changing consumer behavior. Whereas brands once served as a central point of reference, consumers today conduct their own research much more thoroughly. According to various studies in the consumer goods sector, over 70 percent of shoppers look up information online before making a purchase, compare products, and check their ingredients. The brand is now just one factor among many. BeautyMatter describes this shift as a move toward an “ingredient-led economy,” in which products are increasingly evaluated based on their formulation and effectiveness. Consumers no longer ask which brand they should buy, but rather which ingredients are best suited to their individual needs.

Ingredient Awareness as a Driver

A key driver of this trend is the growing phenomenon known as “ingredient awareness.” Consumers are paying closer attention to active ingredients such as retinol, niacinamide, and hyaluronic acid, as well as their specific effects on the skin. This trend is amplified by social media, dermatological content, and easily accessible sources of information. Studies show that younger target groups, in particular, have a high level of interest in ingredients. Gen Z and Millennials actively seek out information on mechanisms of action and expect transparency in brand communication. At the same time, skepticism is growing toward general marketing claims that are not clearly substantiated. This shift is changing the decision-making process. Products are being evaluated less on an emotional basis and more on a functional one.

Science as a Differentiator

At the same time, scientific credibility is gaining importance in the beauty market. Terms such as “clinical,” “dermatologically tested,” or “evidence-based” are no longer niche marketing terms but have become a central component of many brand strategies.

BeautyMatter highlights that dermocosmetic brands and scientifically positioned providers, in particular, are experiencing above-average growth. Consumers are looking for products whose effects are verifiable and, ideally, backed by studies. This trend is further reinforced by the proximity to healthcare topics.

Market data also supports this development. The global dermocosmetics market is growing steadily and will continue to gain importance in the coming years, as consumers increasingly seek products that offer both cosmetic and functional benefits.

The Role of Technology and Data

Technology further accelerates this shift. Digital tools, skin analyses, and AI-powered recommendations make it possible to evaluate products not just in general terms, but on an individual basis. Decisions are increasingly based on data rather than brand image. Consumers use these technologies to validate their choices and better align them with their needs. This gives rise to a new form of decision-making that is more evidence-based. Brands do not lose their significance as a result, but they must define themselves more strongly through their actual product performance.

Implications for Brands and Retail

This trend has far-reaching implications for the entire beauty market. Brands must communicate more transparently, explain their formulations, and demonstrate the effectiveness of their products. At the same time, there is a growing demand for expert advice in retail. Consumers expect not only product recommendations but also an explanation of active ingredients and their benefits. Competition is thus shifting from brand image to expertise and credibility. Products must not only be well-marketed but also function in a way that is easy to understand.

Conclusion

The beauty market is evolving from a brand-driven to an ingredient-driven system. Consumers are increasingly making their decisions based on ingredients, data, and verifiable results. Brands remain relevant, but they are losing their sole authority to define the market. In the future, what matters will no longer be who sells a product, but how well it works and how transparently this is communicated.

The focus is thus shifting from the brand to the substance—a development that will shape the beauty market in the long term.