Multiracial identities are becoming more prominent, challenging brands to address the nuanced beauty needs of an evolving population.
As consumers increasingly identify as two or more races, globally, we’re moving beyond the conventional racial classifications found on legacy forms. This shift, propelled by demographic changes driven by migration, globalisation and cultural intermingling, means brands must recalibrate their strategies to meet the nuanced beauty needs of a multiracial future.
In the US alone, the multiracial population has grown exponentially across all age categories, surging by 164 per cent in the last decade, according to the US Census Bureau. The 18 to 44 demographic, the fastest-growing segment of the population, saw a 300 per cent increase. Consumers identifying as ‘some other race’ — encompassing entries like multiracial, mixed and interracial — jumped from 14.1 per cent in 2010 to 30.1 per cent in 2020. Meanwhile, those identifying as ‘two or more races’ rose from 2.3 per cent to 10.2 per cent.
Beauty conglomerates like L’Oréal, Unilever and Estée Lauder Companies (ELC) are taking note. ELC’s executive VP of research, product and innovation Carl Haney says: “Our future consumer will be more diverse and we need to evolve our product offering to serve a multiracial and multicultural consumer, caring for melanin-rich skin and a wider range of hair textures. We also expect global influences like a blending of geographical rituals, ingredients and aesthetics to shape product innovation.”
L’Oréal forecasts that by 2030, 40 per cent of the global population will have wavy, curly, or coily hair (vs 36 per cent in 2025), and by 2040, 68 per cent (vs 63 per cent in 2025) will have melanin-rich skin. In response, the company is recalibrating its innovation pipeline, product offerings and consumer-facing technology to meet these evolving needs. CEO Nicolas Hieronimus echoed this strategy at the 2024 earnings conference, underscoring the brand’s commitment to future-proofing its portfolio.
What could these products look like? Skincare products will increasingly focus on evening skin tone and pigmentation-related needs, explains Frédéric Flament, L’Oréal’s research and innovation international director of instrumental evaluation. “Products can’t target the exact same thing for all skin tones. In lighter tones, we’ll need to focus on ingredients targeted to improve solar lentigo, medium skin tones that will treat melasma and post-inflammatory hyperpigmentation for darker skin. The idea will be to cover these growing concerns to be sure that the products we bring have the accurate efficacy for specific concerns.”
For growing curly hair needs, the group’s global VP of colour science Anke Hadasch says: “It’s important to develop hair colours given how more multiracial consumers will have curly hair and this hair type is very fragile. For example, we’ll develop hair dyes that lift up against natural hair colours, provide the right colour reflection and not damage the hair.” Haney adds, “Products will need to focus on adopting deep localisation, leveraging artificial intelligence for sourcing trends and hunting for new, relevant ingredients and amplifying innovations with local exclusives for markets. Relevance will rely on formula, packaging, shades, scent and creative serving distinct needs.”
“The growing multiracial consumer will task brands to move beyond tokenism and genuinely reflect global beauty standards,” says Olivia Houghton, lead beauty, health and wellness analyst at strategic foresight consultancy The Future Laboratory. “There’s an ongoing shift towards celebrating a wide spectrum of beauty ideals and brands must authentically represent the diversity of their customer base.”
As this consumer segment grows in size, influence and purchasing power, it will redefine product categories and recalibrate industry standards. How can brands keep up?
The brand crawl to meet demand
Multiracial consumers have not emerged overnight, but their multifaceted needs remain underserved. While shade expansions in makeup have become table stakes, true inclusivity is still lacking. “The biggest unmet needs for the rapidly growing multiracial population include skincare that addresses hyperpigmentation, haircare for textured hair and complexion products that accurately match melanin-rich skin,” says Ron Robinson, cosmetic chemist and founder of skincare brand, BeautyStat. Deepica Mutyala, CEO and founder of makeup brand Live Tinted, agrees, noting that multiracial consumers often find themselves caught between shades, undertones and formulations, regardless of the industry progression to date.
One of the most significant challenges for beauty companies is research and development (R&D) and production costs. Add logistics, licensing and rising ingredient prices into the mix, and the financial burden becomes clear. “Developing inclusive beauty at scale often requires increased R&D, broader testing and complex formulations, making it difficult to balance affordability with diversity,” says Rafael Lopes, VP of innovation and brand equity at personal care brand Suave.
A more nuanced supply chain adds another layer of complexity. Specialised ingredients tailored to specific hair textures or skin concerns often come at a premium. “These ingredients are harder to source, and ensuring they perform well requires extensive clinical and consumer testing, which adds time, cost and complexity,” says Lopes. Add to that global compliance standards — halal, cruelty-free, organic — and the stakes become even higher. For Mutyala, this disconnect prompted her to bring R&D in-house. “Many labs still operate with outdated standards that overlook diverse skin tones and concerns,” she says. “Supply chains simply aren’t built to support this level of precision, making the process inherently more costly.”
But bumps in the road for inclusive product development won’t cut it anymore. “Consumers can’t feel confident using your products if they don’t see themselves reflected in your brand,” says Andrew Fitzsimons, founder of Andrew Fitzsimons Hair.
Rewiring traditional frameworks
To meet rising expectations, beauty brands must overhaul their approaches to formulation, product development and consumer engagement. This shift goes beyond extending shade ranges or launching textured hair collections — it requires a fundamental rewiring of how products are ideated, tested and marketed.
Experts say that the key lies in embracing adaptive technologies, innovative ingredients and a deeper understanding of diverse needs, all while responding with agility. “At the polycultural centre of excellence [Unilever’s R&D campus, built in 2018], we’ve been focused on studying and capturing data around melanin-rich skin tones, textured hair and what consumers from these cohorts really need and want from products to better shape our innovation,” says Tiffany Yizar, North America head of R&D for beauty and well-being at Unilever. “One significant discovery is that melanin-rich skin has a different ceramide makeup and tends to be drier than other skin types. We’re now committed to understanding and addressing these unique needs in our innovations.”
Hybrid formulations that account for a range of skin tones and hair types will become the norm, not the exception. Brands such as Prada Beauty, Youthforia, Estée Lauder and Hermès have introduced pH-adaptive technologies in lip and cheek products, but such innovations will soon become industry-wide expectations. Haircare, meanwhile, still lags, with pH-balancing formulas yet to fully embrace adaptive technologies. “Innovations in colour-adjusting and smart pigments that respond to environmental factors will be leveraged to better serve multiracial consumers,” says Robinson. Adaptive formulations that dynamically adjust to different undertones, or haircare products that address both coily roots and looser curls along the length of the hair, will become industry benchmarks. “Brands need to bridge the gap with adaptable solutions,” Fitzsimons adds.
Experts are betting on AI to facilitate this transition. Through AI and machine learning, brands like Prose can analyse vast data sets on skin types, hair textures, genetic variations and environmental influences to deliver hyper-personalised recommendations. “AI can decode the nuances traditional beauty research often overlooks, providing tailored solutions that evolve as a consumer’s needs change over time,” says Mutyala.
Ingredient innovation is another frontier. Experts predict that future formulations will blend traditional botanical extracts, bioengineered actives and high-performance hydration to cater to multiracial consumers’ distinct needs. Skincare brands, for instance, will need to prioritise actives that target melanin-rich skin while addressing concerns like post-inflammatory hyperpigmentation and uneven skin tone. La Roche-Posay spent 15 years developing its Mela B3 range to tackle these concerns effectively. Similarly, Chadian haircare brand Chéribé blends its bioengineered bond repair technology with locally sourced ingredients like croton gratissimus var zambesicus (a tropical African shrub) to ensure deeper penetration, better bond repair and amplified moisture retention for textured hair. “The combination bridges the gap between tradition and science,” says Chéribé founder Salwa Petersen.
However, ingredient innovation comes at a cost. “Many specialised ingredients tailored for specific hair types or skin concerns are expensive, making it difficult for mass brands to incorporate, which can lead to higher retail prices,” warns Lopes. Akash Mehta, founder of Fable Mane, adds that shifting supplier and manufacturer mindsets presents its own challenges. “Manufacturing ayurvedic (a traditional Indian medicine system) products in the US has been complex because many labs are working with these ingredients for the first time,” he explains. “But as more brands challenge the status quo, demand for these ingredients and formulations will drive innovation and accessibility.”
As technological advancements accelerate and consumer expectations rise, there’s no longer room for half measures. Beauty brands can no longer rely on surface-level inclusivity. Brands that embrace this next wave of innovation — from hybrid formulations and AI-driven personalisation to ingredients advancements — will not only capture the loyalty of multiracial consumers, but also future-proof their relevance in an increasingly diverse world.
“The reality is that multiracial consumers are shaping the future of beauty, both in demand and cultural influence, while brands that fail to act on this shift risk becoming obsolete,” concludes Lopes.
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