Rapidly evolving consumer preferences and technological advancements are causing a dynamic transformation in the cosmetic industry. A significant shift towards clean beauty, personalized skincare, and sustainable packaging can be seen as new trends in the beauty industry. Consumers are demanding products free from harmful chemicals like parabens, sulfates, and phthalates, opting instead for formulations that use natural and organic ingredients.
Personalized skincare is also rising, with consumers seeking products tailored to their skin types and conditions. Additionally, there is a growing emphasis on sustainability, with brands focusing on eco-friendly packaging and ethically sourced ingredients.
However, challenges like the high cost of natural ingredients can limit product accessibility and cause inconsistency in the efficacy of clean beauty products. Personalized skincare requires sophisticated technology and data analysis, which can be expensive and complex. Moreover, sustainable packaging solutions often struggle to balance environmental benefits with practicality and cost-effectiveness.
Along with major industry players, many SMEs and startups are working on solutions to gain an edge in the market. They aim to address these challenges with emerging innovations built using new technologies and creative solutions. These advancements promise to enhance product efficacy, improve sustainability, and make personalized beauty more accessible.
Keeping the industry’s immediate problems and challenges in mind, we looked for emerging cosmetic startups that were trying to solve them and came up with this list.
This article highlights seven startups (out of 17) at the forefront of cosmetic industry innovations, each offering unique solutions representing the future of beauty. You can fill out the form below to get the report, which will give you insights into the more innovative cosmetic startups, their products, and the challenges they are trying to solve.
1. Beauty Tech
| Founding Year | 2019 |
| Headquarter | Publicly not disclosed |
| Total Funding Amount | RUB5 Million |
| Last Funding Round/Amount | Seed/RUB5 Million |
| Website | https://www.beautytech.app |
Beauty Tech is addressing the need for personalized beauty and wellness solutions tailored to individual genetic profiles. The startup has developed an app integrating genetic testing with personalized cosmetics and nutrition sets.
The app employs a unique algorithm for genetics-based product selection, positioning itself as a marketplace for biohacking.
Natalia Feldberg is the co-founder and CEO of this startup. She is an Entrepreneur in the production, development, and sales areas of cosmetology and parapharmaceuticals. Beauty Tech raised RUB5M in its latest seed round on Jun 21, 2021.
2. Parallel Health
| Founding Year | 2021 |
| Headquarter | California, US |
| Total Funding Amount | $2M |
| Last Funding Round/Amount | $1.2M/Pre-Seed |
| Website | https://www.parallelhealth.io/ |
The skincare industry faces a major challenge – the lack of truly personalized products tailored to each individual’s unique skin microbiome and biology. People often struggle to find solutions that properly address their skin type and concerns.
To solve this, Parallel utilizes advanced genomics, skin microbiome science, and machine learning to offer comprehensive, precision skincare.
A key ingredient Parallel Health leverages is phages, also known as bacteriophages. Phages are tiny viruses that can selectively target and disable specific bacteria strains.
The startup technology identifies bacteria based on matching genetic sequences. This allows phages to seek out and neutralize harmful bacteria while leaving beneficial bacteria intact.
Phages are natural antimicrobials and promising ingredients for targeted skincare applications. By selectively deactivating problematic bacteria, phages may help rebalance the skin microbiome. Their specificity makes them a potentially powerful component of precision skincare regimens tailored to each individual’s unique skin microbiology.
The startup claims Phages to be 99.9% effective In treating skin issues.
Its CEO and Co-Founder, Natalise Kalea Robinson, attended Stanford University Graduate School of Business.
Parallel Health has raised $2M in funding over two rounds. Their latest funding came from a Pre-Seed round on July 31, 2022.
3. Exponent Beauty
| Founding Year | 2019 |
| Headquarter | California, US |
| Total Funding Amount | Publicly not disclosed |
| Last Funding Round/Amount | Seed/Publicly not disclosed |
| Website | https://exponentbeauty.com/ |
Active ingredients in skincare products degrade, compromising their effectiveness over time. On the average usable lifetime of the product, these ingredients degrade by 40% within eight weeks.
Exponent Beauty has developed a solution with its patented technology that preserves ingredients in powdered form. The user activates the powder during application using a multi-weight Hyaluronic Hydrator (Quadruple Hydration Hyaluronic Serum).
This process ensures that the active ingredients, such as Retinol, Vitamin C, and CoQ10, are at peak potency when applied to the skin.
Compared to traditional skincare products, Exponent Beauty’s technology maintains ingredient efficacy and freshness, providing users with more effective and longer-lasting benefits. The materials used to create exponent skincare systems are sustainable, recyclable, and eco-friendly.
Liz Whitman is the founder and CEO of this startup. She holds an MBA from the Harvard Business School. Whitman was co-founder of startups like Lewis Albert Design LLC and Manicube.
Exponent Beauty’s latest seed funding round was on Jan 1, 2021.
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4. Cay Skin
| Founding Year | 2022 |
| Headquarter | Miami, Florida, US |
| Total Funding Amount | $4.1 Million |
| Last Funding Round/Amount | Seed/$4.1 Million |
| Website | https://cayskin.com/ |
The market lacks strong sun protection options that do not compromise skin health, inclusivity, or environmental sustainability. Many sunscreens can clog pores, leave a white cast, or contain ingredients harmful to marine ecosystems.
To solve these problems, Cay Skin developed a line of sun care products that are inclusive and suitable for all skin types and tones. Its key product, the Isle Glow Face Moisturizer SPF 45, contains a blend of ingredients like sea moss, nectar, niacinamide, ferulic acid, and watermelon fruit extract, providing hydration, antioxidant benefits, and effective UV protection.
The products are vegan, cruelty-free, silicone-free, non-comedogenic, and dermatologist-tested. Furthermore, the company emphasizes sustainability, with 75% of its primary product packaging comprising at least 30% post-consumer recycled content.
Unlike many sun care products, Cay Skin’s offerings are designed to be gentle, effective, and suitable for diverse skin types while prioritizing ecological responsibility.
CEO Karen Barner leads this startup with her experience in similar roles with companies like Aspirational Beauty Marketing, LLC, and WBCD Hair and Body, LLC. She also handled the responsibilities of the President (Barner Consulting) and Senior Vice President (Guthy-Renker).
Barner holds a Bachelor of Science in Business Administration from California State University, Los Angeles.
Cay Skin raised its latest funding of $4.1 Million through a seed round on Mar 8, 2022.
5. Shea Yeah
| Founding Year | 2017 |
| Headquarter | Zurich, Switzerland |
| Total Funding Amount | €110K |
| Last Funding Round/Amount | Angel/€110K |
| Website | https://sheayeah.ch/ |
Shea Yeah is on a mission to revolutionize how we combat dry skin. It is shifting away from water-based moisturizers that can evaporate quickly, leaving skin dry again. This startup leverages the natural, intensive moisturizing properties of shea butter, enhanced with other potent botanicals, to deliver long-lasting hydration without a drop of water.
They further ensure that the shea butter and Swiss herbs are sourced from the regions where the plants naturally thrive.
By celebrating the stories behind these ingredients and their intrinsic value for skin care, Shea Yeah offers customers a connection to nature’s bounty while promoting sustainability and ethical sourcing practices.
It was founded by Sandra Fischer, whose passion for sustainable and effective skincare solutions drives the startup’s vision.
In May 2022, Shea Yeah received an Angel investment of €110K.
6. Khloé’
| Founding Year | 2023 |
| Headquarter | Wilmington, Delaware, US |
| Total Funding Amount | $536K |
| Last Funding Round/Amount | Seed Round/$500K |
| Website | https://www.khloe.app/ |
The nail salon industry faces challenges such as inventory management, time-consuming manual processes, and limited client customization options. These problems often result in higher operational costs, reduced customer satisfaction, and constrained creative expression.
To tackle these issues, Khloé has developed a comprehensive technology suite that includes a mobile application for virtual nail design try-ons and a proprietary 3D printer for salons.
The mobile app allows customers to customize and preview nail designs, book appointments, and bring virtual creations to life in salons.
Khloé’s 3D printer is designed to mold acrylic or gel nails and mix lacquers to produce a wide range of colors. It enables the printing of customer-specific designs directly onto nails. This system can produce over four million color combinations and requires a minimum production volume of 0.1mL.
This technology enhances customer and salon experiences. It reduces the need for physical inventory, saves time for customers and technicians, and attracts new customers seeking personalized nail designs.
The startup’s innovation can be integrated with various software services, such as accounting, booking, loyalty programs, and CRM, and streamlines salon management.
Founder Shawn Doan has led this Khloé with his experience as a co-founder of other startups. He has also been a managing partner and key account manager for previous startups.
Doan worked as a Marketing Consultant and helped Thinklean Limited with brand development, visual designs, and brand guidelines.
Khloé’s latest seed funding, $500k, was on August 30, 2023. Alphabet and MongoDB are among the investors in this startup. The startup is looking for a female co-founder to join.
7. Hally Color
| Founding Year | 2020 |
| Headquarter | Connecticut, US |
| Total Funding Amount | $536K |
| Last Funding Round/Amount | Venture – Series Unknown/$4.7 Million |
| Website | https://hallyhair.com/ |
Many consumers face challenges with traditional hair coloring products, which often include harsh chemicals such as ammonia. These chemicals can damage hair and cause discomfort due to strong odors. Moreover, the hair dye process can be messy and complicated, leading to uneven color application and dissatisfactory results.
Conventional hair dyes also lack versatility and gentle formulations suitable for varied consumer needs, including those with sensitive skin or allergies.
Hally has innovated with “Color Cloud,” the first ammonia-free foam hair dye. This product represents a significant shift in hair coloring technology by using a foam application method that simplifies the dyeing process, making it less messy and more user-friendly.
The foam spreads easily through hair, ensuring even coverage and vibrant color. The formulation is gentle and designed to be less damaging. It is enriched with natural nourishing extracts that help maintain hair health.
The startup offers other state-of-the-art hair care solutions, including ammonia-free bleach options, Fluffy-G, Hair Lightening Mist, and Shade Stix.
Fluffy-G is an in-shower hair treatment available in three shades. Lightening Mist (also called Lighten Up) is a formula/Spray that activates in sunlight for natural-looking highlights in 4 minutes. It makes the hair 2-3 shades lighter and shiny.
German Chamomile Extract, Pineapple Fruit Juice, Lavender Flower Extract, Passion Fruit Extract, and Sunflower Seed Oil are natural ingredients in Lighten Up sprays.
Hally’s foam hair dye technology offers a no-drip, mess-free application experience without ammonia. It makes the dyeing process more pleasant. It reduces the potential for scalp and hair damage, making it suitable for users with sensitive skin or those seeking a gentler hair coloring solution.
Kathryn Winokur is the founder and CEO of this haircare startup. Before founding Hally Hair, she was a marketing expert for brands like Pepsico, Unilever, Blink Health, and Walmart eCommerce. Her roles include Head of Marketing and Communications, Director of Marketing, Associate Brand Manager, and Marketing Analyst.
With Her experience and expertise in FMGC Marketing, Winokur has the strategic vision and capabilities to direct Hally toward rapid growth and success.
Hally raised its latest venture (series unknown) funding round on Oct 28, 2022, for $4.7M.
Conclusion
Modern-day problems require modern solutions!
The above cosmetic startups are reducing the gap between customer needs and cosmetics and skincare market availability. However, the market is huge, and many other startups have joined the league, each curating unique solutions for consumers. To ride the bandwagon, a detailed study of these startups is a must.
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Authored by: Vipin Singh, Marketing Team
Edited By: Naveen Kumar, Marketing Team
