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AI’s impact on cosmetics industry

HO CHI MINH (ANN/VIETNAM NEWS) – Artificial Intelligence (AI) is revolutionising multiple industries, including cosmetics, as highlighted by DKSH, a prominent market expansion services provider.

Roland Kraut, General Manager of Performance Materials at DKSH Switzerland, discussed AI’s pervasive impact across sectors during the 2024 Beauty Show in HCM City.

“AI’s influence begins with consumers, where algorithms on mobile devices and social media shape user experiences,” Kraut explained. “In personal care, AI enables tailored recommendations, enhancing consumer personalisation.”

AI empowers consumers to navigate beauty choices more precisely, addressing individual needs and preferences. For manufacturers, AI plays a crucial role in enhancing personalisation, exploring new ingredients, and promoting sustainable practices.

“AI-driven algorithms analyse extensive data to understand skin types and preferences, enabling brands to offer bespoke solutions efficiently,” Kraut added.

Moreover, AI accelerates ingredient selection and formulation processes, optimising product development and reducing time to market. Kraut highlighted AI’s role in creating and forecasting new materials, improving accuracy in product innovation.

“AI’s capabilities extend to sustainability efforts, facilitating the transition from synthetic to natural materials,” Kraut noted. “In distribution, AI aids in minimising carbon footprints by enhancing demand forecasting precision.”

DKSH leverages AI to advance formulation development and streamline supply chain operations, underscoring its pivotal role in shaping the cosmetics industry’s future.

The AI-influenced personal care market, valued at approximately USD3.2 billion in 2022, is poised for robust growth, projected to reach USD20 billion by 2032. 

In Vietnam, the cosmetics market is forecasted to grow steadily, with an annual average growth rate of six per cent, reaching USD3.5 billion by 2026, according to EuroMonitor International.

Despite economic challenges, DKSH Vietnam’s local business line manager, Tran Thanh Hai, highlighted substantial product launches by domestic brands in the first half of the year, illustrating ongoing industry dynamism.

A wide range of cosmetic ingredients was introduced at the 2024 Beauty Show in Ho Chi Minh on July 5. The beauty and cosmetics industry has experienced a huge surge in the use of AI. PHOTO: ANN/VIET NAM NEWS