Last month, Unilever announced it sold a majority stake in Dollar Shave Club to Nexus Capital Management, and Reuters reported Carlyle has put Every Man Jack up for sale. Chronicling movements in men’s grooming, CPG Wire wrote, “It feels like the end of an era for the category…The men’s grooming category does seem like a race to the bottom.” The consumer packaged goods news aggregator concluded that it doesn’t “foresee Carlyle, Unilever, or anyone finding meaningful profits there over a sustained period.”
Against the backdrop of developments in men’s grooming and perennial projections that the men’s category is on a skyward march, for this edition of our ongoing series posing questions relevant to indie beauty, we asked 16 founders and executives at brands in the men’s space the following questions: Do you think there’s a “race to the bottom” happening in men’s grooming? What challenges do you believe face the segment, and how can it overcome them?
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Charlie Razook Founder and CEO, Jackfir There definitely is not a “race to the bottom” happening in men’s grooming. The current problem is universal across CPG brands at the moment, I feel. Venture capital and private equity firms over-bet and overpaid for brands that just were never going to be as big as they wanted. The issue was with the valuation, projections and marketing spend, not the brand potential.
Men’s grooming will simply never perform at the level of a successful women’s beauty brand. They are completely different segments. Every Man Jack will never be Drunk Elephant.
All trends, including actual and projected growth patterns since 2019, point towards more men embracing and purchasing skincare. 2022 men’s prestige skincare sales increased 23% year-over-year from 2021 to $190.1 million, and the overall men’s grooming market is expected to double by 2030. The impetuses range from changing views on toxic masculinity to always being on camera this day and age.
The biggest challenge for men’s brands is community building. Most brands to date have not invested in community at all. I’ve never once seen someone wearing a Jack Black T-shirt. Brands need to invest in slower growth models with products that have a brand identity that goes beyond “we effectively clean your skin.”
What makes the product unique? What community am I joining by using this product instead of CeraVe? Why am I loyal to this product? It's an uphill battle.
- Benjamin Bernet Founder and Co-CEO, Bravo Sierra
I believe there is indeed a "race to the bottom" in the men's grooming category, in the mass channel specifically. In the past few years, the category has been crowded with new entrants who initiated in the DTC space and expanded to big-box retailers quickly.
They all used similar launch strategies: 1). focus on low-value added product categories (i.e., soaps, shower gels, deodorants) that are easy and cheap to develop and manufacture, 2). compete on low prices (thanks to tons of VC money) and 3). use high levels of promotional volumes and discounts—all of this pushed on TikTok and Instagram with the help of very loud, irreverent and aggressive advertising strategies, mostly based on sex and crass humor. The result has been a radical disruption of the category, but not for the better, in my opinion.
At Bravo Sierra, we saw this trend coming in the fall of 2021. Here's what we've done: First, we decided to stop advertising on Meta to get out of the cesspool and instead focused on elevating the brand by investing in PR, brand collaborations and launching on Amazon.
Then, we pulled out of mass distribution (Target last year and Walmart this year) to focus on specialty and premium channels both e-commerce and IRL retailers.
Finally, once we got out of the retailer agreements, we were able to adopt a pricing strategy that reflects the quality of our products rather than racing to the lowest margins.
It is essential to nurture and protect your brand. Increasing our presence in high value-added product categories such as facial skincare is our next milestone. Coming in 2024!
I am very bullish about the prospects of the men's grooming category in prestige and specialty channels, but the mass market is indeed in a difficult phase, and I would avoid it at all costs.
- Calvin Quallis Founder and CEO, Scotch Porter
I do not believe there’s a “race to the bottom” happening in men’s grooming. Men, now more than ever, are invested in self-care and self-love and diligent about showing up in the world at their best. Men are now exploring and regularly using products outside of the traditional shave segment.
Beard care, skincare and haircare continue to be huge drivers of growth in the men’s grooming segment, and men have developed minimalist regimens that began during the COVID-19 pandemic. The continued growth in men’s grooming is backed up by data. While total beauty is projected to grow at a CAGR of 3.6%, men’s grooming is expected to grow almost double at 8.6% CAGR by 2030.
There will, of course, be winners and losers. Men desire products that are highly efficacious, with active ingredients that are proven to work, and millennial, gen Z and younger consumers do not feel represented by modern men’s brands and expect more than just great products from their brands. They expect their brands to have a soul.
Past archetypes of masculinity for some feel unattainable and socially inappropriate, while others feel unmoored and that the new socially acceptable model of masculinity is demoralizing. There aren’t many brands championing individuality over these polarizing viewpoints.
Modern men’s brands usually take a side. Their messaging and communications are either leaning very “traditional masculinity” or “new age masculinity,” while men are looking for a bit more guidance and way forward with a better middle ground.
Also, the fundamentals of business continue to be important and creating products with good gross margins that allow you to reinvest in the brand but remain affordable for the average male consumer is key. Men are willing to spend a little more on products that work from brands that have a soul and they feel aligned with. This is a juggling act for brands but is possible. The space continues to be primed for growth. Some will win and others will lose.
- Taylor Hooker Marketing Manager for Activation, Prestige Grooming, Edgewell Personal Care
I don’t think there’s a “race to the bottom” per se. Moreso, the grooming category is notoriously hard to crack for emerging brands since the space is dominated by legacy brands that do an excellent job of evolving with their consumers and capturing new consumers over time.
Adding to the challenge, consumer expectations have significantly evolved in recent years, which I think was a big change coming out of the pandemic. Men are more educated than ever on skincare products, ingredients and addressing their skin/body/hair concerns.
Jack Black in particular has built a reputation on listening to what our customers do and don’t want. Then, we deliver on the ask, making sure each product is multifunctional with a handcrafted formula, dermatologist-tested and free from a long list of “no” ingredients.
And it’s continuing to resonate with our JB guy and the grooming space at large, proving that growth can definitely still be found here. During FY23, our DTC website saw 8% growth in addition to 11% growth in Amazon sales. Not too shabby for a 20-plus year old brand!
One of the biggest challenges I see is that women’s brands are capturing category share. We continue to see traditionally women’s brands shift to a more unisex proposition, and we’ve even seen retailers begin to list women’s brands within their male grooming categories online. The best way to combat this challenge is to find ways to create a shared routine for our guy and his partner. For instance, does she love our JB lip balm, and can we introduce him to our lip balm through her?
Consumer expectations are another challenge that I can see affecting the category. It’s not enough to simply be paraben-free and call it a day anymore. That’s the bare minimum our consumers expect. Our guys are after quality first and foremost, reaching for products that make them feel like the best versions of themselves.
Brands need to check a few very important boxes to capture the grooming consumer’s attention:
- Multiple distribution channels with a seamless shopping experience. Nobody wants to pay for shipping, ever. And they want it fast—shipped in two days or less or same-day pickup.
- The brand needs to resonate emotionally and make their consumer feel empowered. Do they feel like the best version of themselves after using your product? Do they understand each product’s reason for being or is it just another facial cleanser that can be easily replaced by a competitor?
- Quality is a huge factor as well. Are you giving consumers a quality product experience every time they reach for your product? Is that same quality something they experience across every product they try from your brand? How about your ads—are they evoking the same quality experience, too?
- Lastly, it’s impossible to do everything and do it well. What are your consumers telling you works? What are they asking for you to create for them? If you’re just seeing what other brands are creating and then throwing NPD into the universe hoping it sticks, you’re not honoring your brand or your consumers’ wants and needs.
- Sam Lewkowict Founder and CEO, Black Wolf Nation
Absolutely there’s a “race to the bottom.” However, this relates to the mass category and particularly in shave and body care. Target took a big swing in more premium-priced, men’s grooming products built by startups and exciting new brands, and they all flopped and were cycled out of Target’s men’s world.
What did work and what they went all in on was sub-$9 mass-marketed CPG giants. The problem is at retail, where all brands need to eventually live in order to build sustainable businesses that can grow over time, and those shelves are filled with cheap products that will outsell anything at a premium.
Since being profitable in direct-to-consumer distribution is no longer possible at scale for almost all brands, retail is the path to profitability. Ironically, the points of distribution are creating a squeeze.
If Sephora or Ulta were viable options to sell men’s products, then the price points could be higher. However, as we’ve seen with most men’s products being removed, men are not going to be buying their own products in either retailer as they currently are. Costs are also rising, yet retailer demands on MSRPs are staying firm, and the margin compression is real.
The opportunity lies in premium distribution and placement in higher end retailers. Until such time that someone breaks through and can convince men to spend double for a body wash that sits next to a cheaper product that to them seems identical, it won’t work at mass retail. Consequently, there will be fewer winners in the men’s space, but the opportunity for one to break through in a big way is still there.
- Bani Bahari Co-Founder, OffCourt
I don’t think there is a “race to the bottom” at all. We see the male consumer getting more educated and more sophisticated, and he’s looking for better products, products that are functional yet modern and thoughtful, with ingredients that are nontoxic and brands that are environmentally friendly and stand for something.
I believe that many changes in grooming are actually fueled by women. Women are very educated in this space, and it influences what she brings into the home, which in turn influences the guy in her life.
Most legacy brands in the men’s aisles, and these are really brands that have been around for 10-plus years and have failed to keep up with the changes in the consumer, which is true for both men and women, and they are still selling products within inexpensive, outdated formulas and dated branding.
The interesting thing about male grooming is that, if you are building a brand in the category, you have to make a product that delivers what the male consumer is looking for (textures, fragrance, branding, product experience, etc.), but it also must appeal to the significant other in his life as this person is often the decision maker. Women expect cleaner ingredient lists, more modern fragrances and more sophisticated branding.
I think the face category beyond shaving has always been challenging in the U.S. because most men still don’t use facial products on a regular basis. It’s an uphill battle to change their behavior and persuade men to use something they have not built in their regular routine such as moisturizer or sunscreen.
I think the change is happening, but maybe not fast enough for some investors. I think we are probably still years away from these being standard practice and part of the culture.
- Rhys Moore President and CEO, St. Johns Fragrance Company
Yes, there is a “race to the bottom” in some categories, but those are brands whose products are already value-priced and found in mass distribution. Their corporate and private equity owners are not well suited for slim and shrinking margin businesses.
There is another movement at the higher end for products with exclusive formulations, appealing to specific demographics and specialty distribution, and those brands seem to have some growth. The brands in the middle are the brands at most risk in the next year.
There are plenty of product choices and options in grooming products for men, maybe too many. The challenges are always how to encourage innovation and introduction of new advanced products and how to bring them to market effectively and efficiently. How do we foster the development of small brands in a high-cost, highly competitive environment? Marketing options are voluminous, but complex and complicated. How do brands—new and established—break through the chatter and clutter digitally?
One idea is for brands to overcome the challenges is to collaborate across categories and develop and market products together to combine resources for efficiencies and reach new and broader audiences.
- Lekha Vyas Founder and CEO, ELVY Lab
We’re seeing a “race to the bottom” happening across the entire beauty and personal care industry due to such saturation of the market. While the men’s grooming space isn’t nearly as crowded as women’s, it is still very much a white space, and there’s no clear winner yet.
During the last few years of building my brand, I’ve seen that there’s definitely a growing need for quality, men’s-focused products and also education for the everyday man when it comes to self-care. I firmly believe that there’s room to grow in this space, and it can be done with the right strategy and marketing.
I believe that the main issue is education. Gen X and millennial men never really focused on vanity until the emergence of TikTok and rise of social media, which has definitely sparked a new generation of men normalizing and prioritizing self-care. More and more men are feeling comfortable enough to explore solutions to their skin issues and are utilizing preventative products and treatments as well.
Another interesting observation is that men with international cultural backgrounds tend to be more educated on personal care, thus valuing their looks and self-care routines more. If we can learn anything from historical data in skincare and beauty, it’s that what is not getting saturated in the East for men will only pick up and grow in the West. These are all key indicators that there’s room for exponential growth in the men’s grooming industry.
- Judah Abraham Founder and CEO, Slate Brands and Insanely Clean
Far from a "race to the bottom," it's more accurate to describe the current landscape as a "race to the top." The dominant player in the men's grooming category is yet to be determined, presenting an exciting environment for brands to establish themselves in the market.
The men's grooming category is still in its infancy, offering significant opportunities for growth. Currently, there are only a few key players, and consumers are actively exploring different brands to find what resonates with them.
However, the anticipated rapid growth hasn’t really happened yet, so the category is growing, but not super fast. The measured pace could impact investors looking for quick returns as the category is still in the early stages.
Similarly, retailers have allocated considerable space and brought in many brands, even though a majority of consumers are female and are uneducated about some of these brands. Additionally, many men who do purchase for themselves are still accustomed to convenient options like Amazon. Growth is happening, but it's slow and steady, reflecting men’s gradual adoption of the expanding grooming market.
The key challenge revolves around sustainable growth with key indicators such as customer lifetime value, along with retention and repurchase rate. To do so, brands need to focus on multiple aspects at once, from being where the customers are such as a strategic presence at shows, hotels, business events, sports events and gyms to proper effective relatable messaging. It's a matter of aligning with the consumer's lifestyle and catering to their habits.
A strong part of the customer base is female, and we’ve seen a portion of our sales coming from women buying for their brothers, boyfriends, husbands and sons. So, understanding how to properly engage with both customer demographics will significantly help build stronger communication strategies. It’s about finding the key of how to have messaging catering to “mom” who is purchasing but keeping the brand/products both cool and effective enough for the male customer to want to restock the items.
- Jani Friedman GM for Personal Care, Foundry Brands
We don’t feel there’s a race to the bottom of the men’s grooming. Data supports independent brands are continuing to take market share from the large CPGs in the category as men recognize the benefits of upgrading their routine.
Unilever’s divestiture makes sense given their focus on their 30 power brands that drive 70% of sales and current investor focus on buckling down to focus on profitability and steady bets. I could hypothesize on why Dollar Shave Club ran into trouble, but high customer acquisition costs and high shipping costs relative to low LTV and Harry’s could be parts of it.
With regards to Every Man Jack, our understanding is the business is generating well north of $100 million in revenues, and this will be a successful exit for Carlyle. A number of other men’s independent brands have had tremendous success in recent history such as Dr. Squatch, which scaled from $5 million revenue less than five years ago to over $300 million today.
Strong brands will emerge and thrive as long as their fundamentals include constant dialogue with their customers, product innovation and an extreme value proposition. It’s ironic, but these are the same simple fundamentals that have bred successful brands for hundreds of years and have nothing to do with AI, social or omnichannel.
Our experience with our two eight-figure men’s brands suggests there is a very healthy market for brands that offer superior products at premium price points. Our Blu Atlas brand is more than doubling year-over-year, our shampoo and conditioner hero SKUs are up 70% YoY, and our skincare products are quickly becoming cult favorites.
Our Supply brand has 40% YoY growth. Based on our optimism, we are heavily investing in innovation for 2024 with two big Supply product launches planned for Q2 and Q3. We see momentum and are extremely optimistic.
Challenges are not unique to men’s. The macro environment is uncertain, but, despite headwinds to beauty and personal care, men’s Grooming is growing. According to Statista, sales reached $74.8 billion in 2021, $80 billion in 2022 and are expected to reach $115 billion in 2028.
That said, the beauty industry can’t market to men like they do to women. Seems obvious, but even use of the word “skincare” is a bit foreign to men and that’s not typically their keyword search when looking for face wash, moisturizers or problem-solution treatments.
The good news is that men are embracing self-care and age prevention, which translates to a higher percentage of their spend on personal care and grooming. They’re doing more research. They are upgrading what’s in their bathrooms and investing in premium, clean solutions for their hair and skin.
We’ll see growth in this segment, but we may not be able to track men’s specific sales as easily as in the past. So many new brand launches are genderless in positioning and packaging.
- Jared Pobre Founder and CEO, Caldera + Lab
Yes, I think it’s a "race to the bottom" for men’s grooming brands that have mediocre products and poorly run operations. The majority of men’s grooming/skincare brands sell inferior products sourced from the same co-manufacturers that sell the same off-the-shelf formulations with little to no efficacy.
At Caldera + Lab, we create all products from scratch. We take years to build and launch products. We source the highest quality ingredients and use industry leading formulators that work with the best women’s indie brands.
Our customers are 40- to 70-year-old men with high incomes that care deeply about performance. We have doubled sales every year since launching in 2019. We have sold out of inventory every year including current 2023. In fact, we're experiencing our highest annual revenue and a triple digit growth rate in 2023. From our perspective, we’re experiencing healthy growth and see positive trends.
I think men’s brands will continue to experience customer churn when they continuing to sell low quality products. If the products don’t work, even if they’re low priced, many men will simply use their bar of soap as face wash and their body lotion as their moisturizer.
There are many savvy DTC marketers that can sell products, but customers are savvy also and will lose interest once they use a product with no benefits. However, for the men's brands that can build quality products, it’s possible they build brand loyalty and ultimately win.
- Francesco Urso Founder, Wolf Project
Men’s grooming is still a great category to be in as proven by the growth we see in the latest earning reports of brands like Gillette or the Edgewell group of grooming brands. Both companies have posted strong topline and bottom-line results in the segment. There are also success stories in the indie space that are paving the way (Dr. Squatch, Manscaped).
We have learned a lot over the past years on what it takes to create a sustainable brand. The founder of Dollar Shave Club himself declared that continuing to build a brand solely on value has proven hard in the long term. This is true in any CPG category. Investments are still being made in the category by both investors and retailers (e.g., Nordstrom just listed Wolf Project nationally).
It is not a race to the bottom at all, it is a race to have products that meet customers’ true needs marketed in a way that resonates with a solid financial structure that allows growth and profits. It is indeed not easy, but I do not believe it’s harder to do in men’s beauty versus women’s beauty or versus any other category. This is what makes our journey as founders worth doing.
- Ayal Ebert Co-Founder, Particle
On the contrary, I see a race to the top, which is where we aim to be. The influx of cheaper products actually created a positive shift by normalizing the idea of self-care for men. That paved the way for premium brands to market to a broader base primed to purchase things they wouldn’t have considered in the past.
The term "metrosexual" has faded, and grooming is now accepted as a legitimate and essential part of men's lives. So, rather than a "race to the bottom," I see it as an evolution that has diversified and enriched the men's grooming landscape.
When it comes to men, there is a need for consumer education. Ingredients like hyaluronic acid are not even part of their lexicon right now. Many men are unfamiliar with the advantages that specific skincare ingredients can offer.
Particle emphasizes the science behind skincare. As a brand, we’re committed to explaining tangible benefits. This involves not only providing clear product information, but also engaging in broader conversations about the importance of skincare. Collaborations with influencers, educational content on social media and straightforward communication about the science behind our products are all part of our strategy.
- Nick Bunn Co-Founder, Frontman
Traditional men’s brands have been a “race to the bottom” because they are largely undifferentiated and have little competition. Some have lost sight of the consumer they serve.
With any category, especially given the current economy, consumers shop to maximize value. At Frontman, we define that as a one-to-one relationship between quality of product and price. Our approach is to focus on solving a salient customer problem with a differentiated solution, serving outsized value beyond price.
It’s wrong to say men aren’t willing to pay. Men are willing to pay for the right products.
- Wendy Iles Founder and Celebrity Hairstylist, Iles Formula
As the founder of a luxury haircare brand whose motto is “minimalism meets maximum performance,” the majority of our collection of formulas are for all genders and hair types.
A significant portion of our growth this year has been attributed to the men’s grooming market, both within our existing collection and the new formulas we brought to market, namely a hair growth formula and multipurpose balm that is ideal for men’s grooming. Therefore, from a luxury market perspective, I don’t see that the men’s grooming market is a race to the bottom.
I believe there has been a substantial shift in male shopping behavior over the past several years. Men are more interested, educated and discerning than ever before on ingredients and efficacy, even sustainability. Whilst previously, it’s a market that may have bought into the status quo, brands now need to not only elevate their offering, but the way they message this to the customer group too.
As we know though, when men find the perfect fit, they are more inclined than other segments to buy in bulk. Therefore, it’s definitely a segment of the market worth investing in.
- Narae Chung Co-Founder, Cardon
I don’t believe there's a “race to the bottom” in men's grooming as the market is indeed growing. However, the growth isn't as rapid as expected, which is why this issue is often discussed.
A significant hurdle is education. Many consumers don't fully understand the importance of skincare and are hesitant to invest in premium products. This has led to a trend where men's skincare brands pivot to more popular categories like deodorants. Nevertheless, we're witnessing a clear increase in interest in skincare and wellness across all genders.
As perceptions of masculinity evolve, men are becoming more willing to invest in men's grooming. However, we should prepare for how this market will develop as I’ve seen a shift in how consumers approach men’s grooming in the Asian market. In the U.S., people are still searching for “the best moisturizer for men,” but, as the category evolves, searches will likely become more concern-specific such as “the best moisturizer for hyperpigmentation.”
While preferences for certain textures or scents may remain, men will start looking for products that solve their concerns, moving beyond just gender-based products. It's crucial for brands to anticipate how consumer shopping choices will evolve.
At Cardon, we're developing products focused on men’s top concerns. By doing so, we are creating products specifically for him and communicating in a modern way, ensuring our brand remains relevant and resonant.
If you have a question you’d like Beauty Independent to ask brand founders and executives, please send it to editor@beautyindependent.com.
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