The UK beauty industry continues to outperform the wider FMCG market despite ongoing economic uncertainty, with new data from Circana highlighting the sector’s resilience as consumers prioritise self-care, wellbeing and accessible luxury.
While cost-of-living pressures are prompting many households to cut back on essential spending, beauty remains largely protected. According to Circana, 62% of UK consumers are maintaining their beauty spend, even as 39% reduce expenditure on groceries and everyday essentials. The findings reinforce beauty’s evolving role as a key component of emotional wellbeing and daily ritual.
Across FMCG, growth is slowing as inflation eases and consumers seek value, with 51% of shoppers trading down to cheaper food options and 38% increasing their reliance on promotions. In contrast, beauty continues to demonstrate strong performance. Prestige beauty grew 8% in 2025, outperforming both mass beauty and other FMCG categories such as household goods and alcoholic beverages.
Momentum has continued into 2026, with the UK prestige beauty market generating £1.1 billion in Q2, marking a 9.2% year-on-year increase and delivering over £90 million in incremental value.
Rather than cutting back entirely, consumers are becoming more selective in their beauty purchases. Over a quarter of shoppers across both mass and prestige segments say beauty remains worth the investment, although they are making more considered choices. Nearly one in five still view beauty as an affordable luxury, particularly among Millennial and Gen X consumers, who continue to favour premium products offering efficacy and emotional reward.
The growing convergence of beauty and wellness is a key driver of this behaviour. Globally, 75% of consumers now actively prioritise self-care, while 78% of UK consumers report taking a more proactive approach to their health. This shift is increasingly reflected in beauty purchasing, with skincare emerging as the top priority across all generations and demand rising for ingredient-led, science-backed products. Searches for azelaic acid, for example, have increased significantly year-on-year, signalling a more informed and results-driven consumer.
Category performance further underscores this trend. In Q2 2026, skincare grew by 15.7%, makeup by 10%, and haircare by 20.4%, with skincare unit demand rising by 21.9%, indicating genuine volume growth. The UK continues to lead key European markets in both skincare and makeup performance.
Digital platforms remain central to product discovery, particularly among younger consumers, with social media, influencers and AI increasingly shaping purchasing decisions. However, physical retail retains a critical role, accounting for nearly half of prestige beauty sales. Department stores and specialist beauty retailers continue to drive in-store engagement, discovery and product trial.
Innovation is also playing a pivotal role in market growth, contributing an increasing share of sales across fragrance, makeup and skincare. At the same time, challenger brands are gaining momentum, adding more than £23 million in incremental value in Q2 alone.
Looking ahead, the outlook for the beauty sector remains positive. As consumers continue to invest in travel, wellness and self-care, beauty is expected to benefit from sustained behavioural shifts towards personal wellbeing and everyday indulgence.
June Jensen-Mills, VP & Head of Beauty at Circana, commented: “Consumers may be cutting back elsewhere, but beauty continues to earn its place in the basket. With 62% maintaining their beauty spend, skincare growing double digits, and wellness becoming increasingly intertwined with beauty, the category has evolved beyond appearance. Today, beauty is about confidence, wellbeing and self-expression.”
If you require any more information on any of the above topics then please reach out to June ([email protected]) or Helen ([email protected])
