Trends shaping the beauty industry in 2025 and beyond

A new global beauty trends report has unveiled insights for brands and retailers, highlighting the rise of social commerce, the untapped potential of Gen X consumers, and other emerging opportunities set to shape the industry in 2025 and beyond.

Despite a slight increase in consumer optimism globally, the data from NielsenIQ suggests European and British consumers remain cautious due to the effects of inflation and concerns about rising prices and global uncertainties.

It comes as online outperforms offline, as challenges such as out-of-stock products, messy testers, and product lock-ups are reported to be deterring beauty shoppers in-store.

Online, Amazon is gaining share in Western European markets and recruiting new beauty consumers.

Meanwhile, TikTok is also hugely popular, with consumers embracing social commerce as TikTok Shop continues to expand into new markets. On average, the report shows that these consumers are making 3.5 more orders than the average e-commerce beauty buyer in the past year.

Fragrance continues to lead the way in terms of category growth at 17%, while cosmetics is slowing down, with Gen Z driving a significant portion of the decline. Plus, skincare and haircare growth is up 6% and 8%, respectively.

While Gen Z and Gen Alpha receive much attention, the report also shows that Gen X remains a "significant" market segment. In fact, it is predicted this demographic will make up 24% of global beauty spending power in 2034.

As a result, NielsenIQ suggests that beauty brands and retailers should tailor their strategies to address each generation's specific needs and perceptions.

It also notes that sustainability remains a crucial and sustained trend, while wellness and inclusivity are emerging as significant opportunities for businesses.

"Successful brands will navigate the balance of being innovative and embrace technology purposefully but are also authentic whilst being aware that consumers are becoming more mindful in their purchasing choices," the 2025 Global Beauty Trends & Growth Report states.