While nobody has yet invented a magic wand to make everyone gorgeous, technologies such as artificial intelligence (AI), augmented reality (AR) and the Internet of Things (IoT) are working their own magic to transform the $2.5 billion world of beauty products. 

And as brands scramble to meet rising consumer demand for personalization, “clean” ingredients and longevity-boosting products, “Israeli tech is uniquely positioned to drive these trends forward,” say Jennifer Elias and Jessica Rosner of Tel Aviv-based Tech It Forward, which connects global companies with Israeli startups that have the solutions they seek.

“We have been working in the field of beauty-tech for almost 10 years, creating innovation programs between international cosmetics corporations and Israeli startups,” Rosner says.

“We like this field because beauty tech is more than just cosmetics; it’s about confidence, self-care and wellbeing,” she adds. 

“The right innovations can transform the way people feel about themselves, making beauty more inclusive, personalized and accessible.” 

Rosner notes that Tech It Forward receives many requests from international companies for new packaging, ingredients and formulations to meet consumer expectations and new regulatory standards regarding the environmental, social and economic impacts of beauty products.

Top 5

Though the United States and South Korea dominate the mainstream beauty market, Israel holds a top 5 place in this ecosystem, says Rosner, drawing on data from Statista. 

Israel’s approximately 200 beauty-tech companies have raised more than $500 million in funding since 2015. 

“Dead Sea minerals and extracts of indigenous plants such as almonds and pomegranates have always been popular natural ingredients for cosmetic products,” she explains.

“When the tech ecosystem grew here, the combination of the two – in collaboration with our academic labs and health-tech industry — made Israel very prominent in disruptive anti-aging techniques, elasticity, rejuvenation, and natural ingredients and formulations.”

This capability has spurred business from big names like L’Oréal, Estée Lauder and Natura.

In his keynote speech at the 2024 edition of CES, the world’s largest consumer tech event, L’Oréal CEO Nicolas Hieronimus said beauty tech is transforming the industry. 

AI is beautiful

One Israeli product at the show that illustrated this point was the Nimble Beauty smart home nail salon, powered by AI and robotics.

Another Israeli AI beauty-tech standout is regenerative aesthetics company Sofwave. Its noninvasive, FDA-cleared ultrasound and electrical muscle stimulation solutions strengthen and tone skin and minimize fine lines, wrinkles, acne scars and other imperfections on the face and body.

Mistrix is applying generative AI to beauty. Its artificial intelligence SaaS platform creates hyper-personal experiences on beauty e-stores, based on the customer’s facial features, skin tone and preferences.

Israeli startup MeNow used AI and chemo-informatics to engineer a customized recommendation engine helping industry giants such as Colgate Palmolive identify exactly the right plant-based functional and active ingredients to formulate targeted clean-label products. 

Novel natural formulations

Many manufacturers want natural product enhancers that can deliver better and faster results. Tech It Forward has scouted out solutions from diverse sectors, including food tech and alternative materials.

“In Israel, several prominent companies are achieving this using Dead Sea minerals, red algae, rare plant extracts, and unique natural oil formulations,” says Rosner.

Smart Resilin extracts the DNA that codes for resilin – a nontoxic insect protein said to be the world’s most elastic material — and clones it into bacterial cells that manufacturers can integrate into environmentally friendlier and more effective haircare and cosmetics products, among other applications. 

Fabumin transforms the protein-rich cooking wastewater (aquafaba) from canned bean and legume canneries into a functional raw material that can act as a plant-based binder for foods and skin-firming cosmetics.

NS Oils produces 100% pure, cold-pressed oils near the fields where the raw materials are grown. Its patented process preserves the vitamins, minerals, fatty acids and active substances of the plant. For the cosmetics industry, varieties offered include almond, hemp, jojoba, flax, pomegranate, sesame and safflower.

The Clearya app and Chrome or Edge extension alerts to toxic chemical ingredients in products such as makeup and personal care items as they’re shopping online or in the store, and suggests safer alternatives. The app, which won the Environmental Justice Community Innovator Challenge Award from the US Dept. of Health and Human Services, works with the websites of Target, Walmart, Sephora, Amazon and iHerb.

Clean and sustainable

The demand for clean labels applies to every aspect of the product, including packaging. Israeli companies are on top of this trend as well.

GreenSpense developed a continuous high-pressure dispensing system for skincare products and more, doing away with pressurized gases, propellants and manual pumping. Using materials engineering and nanotechnology, GreenSpense’s patented EcoDrive system simplifies production, handling, storage and transportation requirements. 

Capsule Minimal is working to dramatically shrink the carbon footprint of shipping and discarding liquid personal care items such as shampoo and face wash. The consumer inserts lightweight 3D-printed capsules of active ingredients into a proprietary reusable metal bottle and adds water.

Israeli startups such as Biotic, Solutum, Tipa and Melodea are inventing natural earth-friendly alternatives to plastics in formulations and packaging.

Live longer and healthier

Israel enjoys world prominence in the field of longevity research. So it’s not surprising that in the beauty-tech area, Israel ranks No. 1 in the longevity subsector, according to Tech It Forward research. 

“There has been a notable shift toward prioritizing longevity and healthspan — the period of life spent in good health — not only within the scientific community but also across industries, including beauty,” says Elias.

“This shift reflects a growing recognition that extending lifespan is not enough; enhancing quality of life and overall well-being is equally essential.”

Among Israeli companies prominent in this vertical is Ananda Labs, which is developing novel epigenetic editing solutions for aging-related conditions from wrinkles to scars to a more youthful immune system.

Versatile cell-based technology company Pluri works with any industry that requires mass cell production, for example alternative protein, personalized medicine and anti-aging formulations.

Completing this picture of Israel as a powerhouse in beauty tech are energy-based medical aesthetics device developers including Lumenis, Alma, InMode and Candela (formerly Syneron), which rank among the top 10 global companies in this vertical.