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| A wide range of cosmetic ingredients are on display at the 2024 Beauty Show in Ho Chi Minh City on July 5. The use of AI is booming in the beauty and cosmetics industry. — VNS Photo |
HO CHI MINH CITY — Artificial intelligence is transforming many industries, including cosmetics, according to leading market expansion service provider DKSH.
Roland Kraut, general manager of performance materials at DKSH Switzerland, told media at the 2024 Beauty Show in Ho Chi Minh City that AI will be used in essentially every industry.
“It starts with the consumer, because algorithms on their phones and on social media somehow dictate what they see next,” he noted.
“If you're interested in a particular topic in personal care, the algorithm will show you a lot of information about what you want to see. So consumer personalization is going to be driven a lot by AI.”
According to Kraut, AI will give consumers more control over their beauty routines, allowing them to find solutions tailored to their specific needs and desires.
For producers, AI can help in a variety of areas, including maximizing personalization, discovering new ingredients, and stimulating sustainable ideas.
AI algorithms analyse data and understand individual skin types, concerns and preferences, allowing brands to offer bespoke solutions.
Additionally, it provides brands with a quick and cost-effective way to analyze and select potential ingredients before assessing consumer interest through vast amounts of data.
“AI will be a great help in creating new materials because it can help us create new molecules, predict molecules and how they will work.
“Computer-generated predictions are much more effective than in the past, when it was trial and error and you either failed or you didn't.”
The technology could also help replace synthetic materials with natural ones, he said.
“For us in the distribution industry, this will go a long way in reducing our carbon footprint.”
He explained that by applying generative AI to demand forecasting, the company will be able to deliver only what customers need, rather than transporting large quantities of goods.
His company uses AI to develop new formulations and forecast supply chains.
He stressed that the technology will continue to shape the future of the cosmetics industry.
The AI-influenced personal care market is expected to be valued at approximately US$3.2 billion in 2022, growing at approximately 20% annually, to reach S$20 billion by 2032.
Vietnam's cosmetics market is expected to reach $3.5 billion by 2026, growing at an average annual rate of 6 percent, according to market research firm Euromonitor International.
Tran Thanh Hai, local business line manager at DKSH Vietnam, said the cosmetics market saw many product launches by local brands in the first half of the year despite the economic difficulties. — VNS
