Members of the beauty industry body, CEW UK, received an exclusive global beauty trend briefing from the global intelligence company NielsenIQ (NIQ). The insights were unveiled following the release of the NielsenIQ 2025 Global Beauty Trends and Growth Report, which pooled data from a variety of NIQ sources as well as World Data Lab and Rakuten Intelligence.
This insights session marks the first in the newly established collaboration with NielsenIQ , delivering advanced and intelligent consumer trends data to members of the UK’s leading beauty industry networking body.
Top Global Beauty Insights for 2025
- Cautious Optimism: While there’s a slight increase in consumer optimism globally, particularly in the APAC region, European and British consumers remain cautious due to the compounding effects of inflation and concerns about rising prices and global uncertainties.
- Beauty Industry Performance: The beauty industry is performing well, but growth is largely inflation- driven. The challenge lies in driving organic volume growth through optimised pricing and targeted strategies
- Category Growth: Fragrance continues to lead the way in category growth at +17%, while cosmetics are slowing down, especially in the US, with Gen Z consumers driving a significant portion of the decline. Skincare category is performing +6% and Hair Care +8%
- Sustainability and Wellness: Sustainability remains a crucial and sustained trend, while wellness and inclusivity are emerging as significant opportunities for brands
- Retail Re-evolution: Online beauty is overperforming vs offline, with Amazon gaining share in Western European markets and recruiting new beauty consumers. TikTok Shop is a huge new business model, but other Chinese giants such as TEMU, Shein, and AliExpress are also expanding their online presence. Collectively, Chinese e-commerce platforms add up to 15% of the online retailer market share.
- The TikTok Shop takeover: consumers around the world are embracing social commerce and TikTok Shop continues to expand into new markets. On average the TikTok Shop consumer is making 3.5 more orders than the average ecommerce beauty buyer in the past year.
- In-Store Experience Challenges: While in-store experiences are evolving with technology, challenges such as out-of-stock products, messy testers, and product lock-ups persist, potentially deterring consumers, which explains the over-index in online growth.
- Generational Focus: While Gen Z and Gen Alpha receive much attention, Gen X remains a significant market segment, and brands should tailor their strategies to address each generation’s specific needs and perceptions. In 2034, it is predicted that Gen X will make up 24% of global beauty spending power.
Overall, the message for 2025 is that brands need to seek balance for consistent success. In 2025 and beyond, successful brands will navigate the balance of being innovative and embrace technology purposefully but are also authentic to themselves whilst being aware that consumers are becoming more mindful in their purchasing choices.
“The global beauty market has surpassed the $1 trillion mark, with projections indicating an additional $700 billion in growth over the next decade. This tremendous expansion highlights the boundless opportunities for innovation and growth within the sector. As the industry evolves, it will be fascinating to see how brands balance the essential in-store experience and personal interactions with the rapid advancements in technology, particularly in AI.
Our ongoing collaboration with NIQ will continue to empower our members with crucial insights, helping them make informed decisions to thrive in an ever-changing market,” said
Sallie Berkerey, MD of CEW UK.
“E-commerce and social commerce are revolutionizing beauty sales globally. Consumers are increasingly experimenting and discovering beauty products through social commerce platforms like TikTok Shop and TEMU. These platforms, with their engaging and immediate formats, are leading this transformation by offering brands powerful new channels to reach and interact with consumers. The ability to drive instant connections and engage consumers ‘in the moment’ significantly boosts purchases.
As e-commerce continues to grow, finding a balance between offline and online sales becomes crucial. Retailers and manufacturers must leverage AI tools and innovative store formats to get more footfalls in physical stores,” said
Claire Marty, Vice President, NIQ
