NielsenIQ reports 7.3% year-on-year value growth in the global beauty sector

NielsenIQ (NIQ), a leading consumer intelligence company, reveals that the global beauty industry is witnessing a strong 7.3% increase in value year-over-year. The Latin America and Africa-Middle East regions show the highest growth, while North America and Western Europe are also showing strong growth rates of more than 7.8% and 7.7%, respectively. In the APAC region, South Korea, India, Thailand, Singapore, and New Zealand are emerging as leading markets, contributing to the overall growth in value. While inflation is a major driver of this global expansion, growth is also supported by rising incomes and the influx of new consumers.

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E-commerce is leading the retail revolution

E-commerce is driving global sales of beauty products, with varying levels of growth across regions. In China, a remarkable 87% of total sales of hair and skin products are made online. In India, 17% of beauty products are purchased online, while in Brazil, this figure is less than 10%. Despite these variations, the general trend marks the predominance of online sales over in-store sales.

Online sales in the U.S. continue to significantly outpace in-store purchases, accounting for 41% of all beauty and personal care sales through e-commerce platforms. In the last four years, platforms such as Amazon have increased their share by 7.3 points by offering competitive prices, fast shipping and a wide selection. Increasingly, customers are turning to Amazon to replenish their favorite products, and spending is increasing every year. While digital commerce has seen tremendous growth over the past five years, in-store retail has remained largely the same. Retailers of the future will need to transform the in-store experience to meet the needs of modern consumers.

The gravitation of consumers towards e-commerce is explained by a combination of market expansion and the loss of store share. The shift to online shopping is more than just a pandemic-driven trend – it's a structural shift in consumer behavior, particularly among younger generations.

Global boom in commerce through social networks

Trading through social media is a global trend. About 68% of purchases on these platforms are based on impulsivity. The TikTok store has risen to become the eighth-largest e-commerce health and beauty retailer in the U.S., with $1 billion in sales in the beauty sector. 12.5% of U.S. e-commerce shoppers have made a health and beauty purchase through this app, with many returning for repeat purchases. In China, 31% of skincare purchases are made at the Douyin/TikTok Shop, a destination where consumers go to discover brands, learn about and try new products.

Despite the rise of digital commerce, in-store retail continues to be relevant. Shoppers appreciate the touch experience and personalized consultations, especially for high-investment items like skincare. Retailers will need to strike a balance between convenience and customer satisfaction and invest in hybrid models that seamlessly integrate online discovery with in-store experiences.

Tara James Taylor, Senior Vice President of Beauty and Personal Care at NIQ, said, "In the rapidly changing beauty industry, success in 2025 is a delicate balance. The dynamics between innovation and tradition, affordability and luxury, sustainability and scalability, and personalization and inclusivity are reshaping the market for both manufacturers and retailers of beauty products. Finding the right balance will be crucial for those who aspire to thrive in the trillion-dollar global beauty market."

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