The data in Ai Palette’s recently published 2025 trends prediction report was derived using its proprietary artificial intelligence (AI) tech, as well as supplementary data acquired from various sources and associations.
A total of 61 billion data points across 13 CPG categories in 24 countries, including Asia-Pacific markets like Indonesia, Japan, Malaysia, Philippines, Vietnam, Saudi Arabia, Singapore, South Korea, Thailand, Turkey, and UAE, were accumulated.
For the cosmetics sector, the hyper-personalisation trend has not only propelled growth of AI apps, DNA-based skin care and smart beauty devices, but also the development of lab-grown ingredients.
“Lab-grown ingredients are becoming increasingly significant in the beauty industry. They are produced through biotechnological methods in controlled laboratory environments rather than being sourced from natural materials. Their consistent purity and quality ensure uniform formulation, unlike natural ingredients that vary due to environmental factors.
“These ingredients also promote sustainability by reducing reliance on traditional farming, preventing resource over-harvesting, and minimising environmental impact. As scientists are able to create compounds targeting specific skin issues, it enables customisation of product based on factors such as skin type, genetics, and lifestyle,” said Neha Goyal, APAC Insights Head at Ai Palette.
The report cited examples of brands that have dived into such innovations, among which is Biossance, known for its use of squalane derived from sugarcane. The brand has introduced lab-grown bakuchiol, a plant-based alternative to retinol that claims to offer similar anti-ageing benefits.
Tech-enhanced experiences
At the same time, the advancements in AI, augmented reality (AR), virtual reality (VR) and other emerging technologies are reshaping user experiences.
These tech-enhanced experiences blend digital elements into physical products and services, creating new levels of personalisation, immersion, and convenience.
According to the report, consumers are increasingly seeking novel experiences. Specifically, there has been a remarkable 136% CAGR in discussions around “novel”, with data points spiking from 1.5bn in 2022 to 8.4bn in 2024.
Furthermore, consumers’ willingness to pay for time-saving solutions is escalating demand for tech innovations that simplify daily routines.
Data from Ai Palette shows a “dramatic rise” in consumer interest in convenience-focused products, with engagement increasing nearly sevenfold in 2023 and 2024, reaching 663m data points, compared to 85m in 2019 and 2020.
“Japan mirrors this trend, with strong interest in ready-to-eat products and snacks, but the real standout is skin care, where demand for convenient solutions has surged, reaching 646,000 data points and an impressive 86.82% CAGR over the past four years.”
Another key observation is the role of social media in consumer behaviour and decision-making.
“A PwC study revealed that 74% of consumers rely on social networks for purchasing guidance, emphasising these platforms’ role in product discovery and recommendations.
“When consumers share their experiences, such as virtual try-ons, they impact their social circles. Trust in peer recommendations can raise brand awareness and drive sales. Additionally, social media encourages consumers to become brand advocates and a part of the brand narrative.”
Therefore, brands can leverage social engagement tools in tech-enhanced experiences to increase consumer interaction and foster an emotional connection, maintain and augment brand relevance, and harness community influence for broader market reach.
Holistic wellness
In this new era of mindful consumption, consumers are prioritising overall well-being across all aspects of life.
As such, “holistic wellness” spans and often intersects between industries from functional foods and beverages to nutraceuticals and personal care.
For instance, Shiseido’s Ultimune Probiotic Powder marked the brand’s debut in the beauty-from-within category, while hy Co Ltd (formerly known as Korea Yakult) expanded into cosmetics in September 2023 by launching a cream formulated with its self-developed lactic acid bacteria.
The pursuit of wellness has also prompted brands to release products aimed at protecting against external aggressors, such as pollution and sun damage.
In addition, the beauty industry has seen a rise in sleep hygiene products (skin care products that improve both sleep quality and skin condition), and stress-relief formulations and incorporating fragrances targeting the skin-mind connection to boost relaxation and uplift mood.
Eco-conscious consumption
As consumers become increasingly aware of the environmental impact of their purchasing decisions, they are looking for products that align with their values. This has led to a surge in “ethical and eco-friendly” options across various sectors.
The key areas of focus include circular economy practices, sustainable sourcing, and product reformulation with natural and organic ingredients.
Based on Ai Palette’s data, keywords such as “reusable packaging”, “plastic-free and compostable packaging”, “biodegradable packaging”, and “sustainable packaging”, have gathered high engagement on social media in the last four years.
Apart from enhancing brand reputation and establishing consumer trust, green practices, such as optimising resource usage and waste minimisation, can also help reduce costs and drive innovation.
The challenge, however, lies in balancing sustainability with affordability and convenience, and overcoming skepticism around greenwashing.
Some strategies that companies can adopt include the use of biodegradable packaging with eco-labels backing sustainability claims, utilisation of innovative materials that reduce plastic use, and switching to renewable sources to power operations.
In the cosmetics industry, brands can also look into offering recycling programmes and refill options to lessen packaging waste.
