Inflation is reported as a major driver of global expansion, but the growth is also supported by increasing incomes and the influx of new consumers.
The Latin American and the African Middle East regions lead with the biggest growth, while North America and Western Europe are also showing a 7.8% and 7.7% growth, respectively. In the APAC region, South Korea, India, Thailand, Singapore, and New Zealand are emerging as leading markets, contributing to overall value growth.
Tara James Taylor, senior VP of beauty & 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 beauty manufacturers and retailers. Finding the right balance will be crucial for those aiming to thrive in the $1 trillion global beauty market.”
E-Commerce Growth
E-commerce is driving global beauty sales, with varying levels of growth across regions.
In China, 87% of total hair and skincare sales are made online. In India, 17% of beauty products are purchased online, while in Brazil, this number is under 10%. However, more sales are occurring online rather than in-store.
U.S. online sales continue to significantly outpace in-store purchases, accounting for 41% of all beauty and personal care sales through e-commerce platforms.
Consumer gravitation to e-commerce is a mix of market expansion and taking share from stores. The shift toward online shopping is more than just a pandemic-driven trend – it’s a structural change in consumer behavior, particularly among younger generations.
Social Commerce
Social commerce is a global trend, with 68% of purchases on these platforms driven by impulse.
TikTok shop has risen to be the 8th largest e-commerce health & beauty retailer in the U.S., achieving $ 1 billion in beauty sales. 12.5% of U.S. e-commerce shoppers have made a health and beauty purchase through the app, with many returning for repeat purchases.
In China, 31% of skin care purchases are from Douyin/TikTok Shop. TikTok Shop is a go-to destination for consumers to discover brands, learn about, and test new products.
Despite the rise of digital commerce, in-store retail continues to be relevant. Shoppers appreciate the tactile 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.
While digital commerce has seen growth in the past five years, in-store retail has largely stayed the same. The retailers of the future will need to transform the in-store experience to meet the needs of modern consumers.
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