- Strong growth in Latin America (+19.1%) Africa-Middle East region (+27.1%)
- 41% of beauty and personal care sales in the US is driven by e-commerce
- Social commerce drives 68% of global beauty purchases
CHICAGO–(BUSINESS WIRE)–NielsenIQ (NIQ), a leading consumer intelligence company, reveals that the global beauty industry is witnessing a solid 7.3% increase in year-over-year value. The Latin American and the Africa Middle East regions lead with the biggest growth, while North America and Western Europe are also showing robust growth rates of +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 overall value growth. Inflation is a major driver of this global expansion, but the growth is also supported by increasing incomes and the influx of new consumers.
E-commerce is leading the retail revolution:
E-commerce is driving global beauty sales, with varying levels of growth across regions. In China, a remarkable 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%. Despite these variations, one overarching trend is the dominance of online sales over in-store sales.
US online sales continue to significantly outpace in-store purchases, accounting for 41% of all beauty and personal care sales through e-commerce platforms. Over the past four years, platforms like Amazon have gained 7.3 share points by offering competitive pricing, fast shipping, and a wide selection. Increasingly, customers are turning to Amazon to replenish their favorite products, with spending rising each year. While digital commerce has seen tremendous growth in the past 5 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.
Consumer gravitation to e-commerce is a mix of the 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.
Global rise of 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 US, achieving $1 billion in beauty sales. 12.5% of US 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.
Tara James Taylor, senior VP 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.”
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About NIQ
NielsenIQ (NIQ) is a leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together two industry leaders with unparalleled global reach. Our global reach spans over 90 countries covering approximately 85% of the world’s population and more than $ 7.2 trillion in global consumer spend. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™. For more information, please visit www.niq.com
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Contacts
Sweta Patra
sweta.patra@nielseniq.com
