Members of the beauty industry body, CEW UK, gathered to receive an exclusive global beauty trend briefing with NielsenIQ, the world’s leading consumer intelligence company, sharing a comprehensive outlook for the beauty industry leading into 2026.
Presented by experts Claire Marty, VP of the global beauty vertical, and Eric Mills, senior thought leadership consultant, the findings highlight a resilient but deeply polarised market where consumer value is being redefined by efficacy, meaning, and technological integration. This insights session marks the third for CEW UK in collaboration with NielsenIQ , delivering advanced and intelligent consumer trends data to members of the UK’s leading beauty industry networking body.
As the industry navigates a constrained economic environment, the report identifies five critical shifts that will define success for the next era of beauty.
1. The era of the constrained consumer
Economic pressures remain a dominant factor for shoppers. Data reveals that only 17% of consumers state they can spend freely, with rising costs in food, utilities, and housing driving a flattish volume growth of -0.2% in the total FMCG sector.
With only 17% of the consumer spending freely, life is difficult for the consumer with them feeling the punch. This has resulted in a polarized “K-shaped” economy where brands must simultaneously target those seeking absolute affordability and those investing in premium luxury.
2. Radical simplicity and the dominance of multi-functional products
In response to bloated beauty routines and financial constraints, consumers are embracing “radical simplicity”. The industry is moving away from the famous 10-step skincare processes in favour of hero products that serve multiple purposes and truly earn their place in a simplified routine.
The focus is now on minimalism in the routine, going back to the foundations. With a constrained wallet, it’s how many steps you can afford to buy and consumers are looking for those products that really earn their place.
This shift is backed by significant consumer data:
• 52% of global consumers (and 62% of Gen Z) are willing to pay more for products that make tasks easier or less time-consuming.
• 33% of consumers say the last few years have made them realise that “less is more”.
• Innovation is now focused on hybrid products especially those that combine makeup with advanced skincare.
3. Digital dominance and the rise of social commerce
Online channels continue to outperform in-store growth across every global region, with the UK seeing a 9% online growth rate compared to 4% for offline. Amazon has emerged as the #1 online beauty merchant, with 60% of online beauty consumers having purchased from the platform.
It’s been seen that online is driving a significant larger growth than offline, even if brands offline market is holding up very well in the UK, there is evidence to show online is going to be a massive growth driver for all. Additionally, TikTok Shop has become a powerhouse, ranking as the second-largest beauty player in the UK.
4. Generative AI reshaping the path to discovery
Artificial Intelligence is fundamentally changing how products are discovered, with 49% of consumers already receiving beauty product recommendations from Generative AI. This technology is drastically shrinking the “digital shelf” from over 50 products in a physical store to just 1–2 SKUs on an AI-controlled interface.
AI has reshaped how consumers are discovering products, for example ChatGPT typically offers three products when consumers ask for recommendations so it is important to think about where your product now shows up in discoverability and what is that new SEO.
5. K-Beauty as a global innovation system
Korean beauty has evolved from a trend into a dominant global force, recording 51% value growth compared to 2024. K-Beauty now represents 8% of total skincare value in UK e-commerce.
Culture has been found to have moved from east to west, instead of west to east, think Labubu, Matcha and K Pop Demon Hunters.. While skincare leads the charge, Korean cosmetics – which saw 60% of growth in the US last year – are the next major indicator for Western Europe.
The report concludes that winning brands will be those that justify their value through science-backed efficacy, master AI-driven discoverability, and expand into multi-benefit products that save the consumer both time and money. Brands that master the essentials of AI will be well positioned to lead the next wave of the industry. “The future of beauty belongs to brands that can prove their value, scientifically, digitally and culturally. Our collaboration with NielsenIQ ensures that our CEW community is equipped to lead and succeed in the next chapter,” said Sallie Berkerey, MD of CEW UK.
