On the 27th of February, CEW hosted an event with partner NielsenIQ and CEW UK Insights: Global Beauty Trends and The Path To Future Growth. With an engaging presentation and panel discussion hosted by CEW and NielsenIQ, we discovered what’s shaping the beauty industry’s future. Beauty continues to thrive with a remarkable 7.3% global value growth (MAT Q3 2024), but staying ahead means understanding where the industry is headed next.
The global beauty industry is undergoing significant transformations in 2025, with social commerce platforms like TikTok Shop leading the charge. Consumers are increasingly discovering and purchasing beauty products through these platforms, with TikTok Shop users placing orders 3.5 times more frequently than the average online shopper over the past year. Chinese e-commerce giants such as Temu, Shein, and AliExpress now account for 15% of the online retail market share.
While much attention has been given to younger demographics like Gen Z (ages 13 to 27) and Gen Alpha (born after 2010), Gen X (ages 45 to 60) remains a vital segment, projected to contribute 24% of global beauty expenditures by 2034.
In terms of product categories, fragrance leads with a 17% growth, followed by hair care at 8% and skin care at 6%. However, the cosmetics sector is experiencing a slowdown, particularly in the U.S., largely influenced by Gen Z’s preferences.
Although the beauty industry has surpassed the $1 trillion mark globally, this growth is primarily driven by inflation. Brands now face the challenge of achieving organic volume growth through optimized pricing and targeted strategies. Consumer optimism varies worldwide, with notable increases in the Asia Pacific region, while Europe and Britain remain cautious due to inflation and global uncertainties.
To thrive in this evolving landscape, brands must balance in-store experiences with technological advancements, particularly in artificial intelligence, to attract consumers both online and offline.
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