Augmented reality has been slowly entering the cosmetics, beauty and fashion industry in the last decade. There is a strong demand for beauty companies to shift to online platforms due to greater personalization and social networks being used for product discovery (Mattan, 2025). As of 2023, L’Oreal is considered to have the greatest market share in the cosmetics industry (Petruzzi, 2025). To stay competitive in this market it proceeded to utilize more tech-driven strategies. L’Oréal acquired ModiFace, a beauty-tech company, in 2018 to transform the beauty industry by including augmented reality. One of the current AR technologies being used are Virtual Try-on for make-up, foundation and hair color. The make-up one detects 63 orientation points on the face and has more than 400 shades to test (L’Oréal Paris, n.d.). The tools were developed using artificial intelligence that analyzed images of women from different skin tones and ages. They also use facial tracking methods to detect the main orientation points on the face.
In the beauty industry many consumers may have purchase uncertainty. This is especially a problem for companies that sell a wide range of shades and products. Personally I have experienced these same barriers when it comes to my cosmetics purchasing behavior. Hence this digital make-up tester is very relevant for the future of the cosmetics industry. It helps customers overstep the barrier of buying new cosmetics products as they don’t want to waste money or energy to look for the perfect product. Additionally, purchase dissatisfaction and returns can be reduced when products are tested virtually. Overall, it leads to a more be engaged audience and possibility to give personalized advice. Virtual try-ons have boosted customer engagement by 80% (Bošković, 2024). AR in the cosmetics and beauty industry might soon be necessary for all brands to ensure their products remain competitive in this market.
On the other hand augmented reality could not replace the beauty in-store retail experience. There might be trust and legitimacy issues. Some customers might be concerned whether the phone simulator gives an accurate depiction of real life. The lighting conditions may influence how the product looks. There is also a fear that the AR technology will make the user look airbrushed and unrealistic. Mehroff (2021) concluded in their research that it is almost impossible to accurately convey textures and colours. They especially focused on luxury make-up brands. Where they saw that newer generations, such as gen z and millennials, are open to brands exploring new technology and innovation when it comes to luxury products, while older generations prefer to stick to traditional sales methods. While there are some drawbacks to augmented reality in the cosmetics industry, there is great potential for developments that could lead to a complete shift in the business model.
References:
Bošković, G. (2024, November 22). Is a virtual makeup try-on worth it? Key benefits of virtual try-ons for cosmetic brands. Arbelle. https://arbelle.ai/key-benefits-of-virtual-try-on-for-brands/
L’Oréal Paris. (n.d.). Try-On Haarkleuring. L’Oréal Paris. https://www.loreal-paris.nl/haarkleuring-virtueel-testen
Moody Mattan. (2025, January 23). Augmented Reality in the Beauty Industry. BrandXR. https://www.brandxr.io/augmented-reality-in-the-beauty-industry
Petruzzi, D. (2025, August 14). Cosmetics industry – statistics & facts. Statista. https://www.statista.com/topics/3137/cosmetics-industry/#topicOverview
