Demand for products that cater to a diverse range of skin tones, hair types and cultural preferences is growing. Local brands in emerging markets such as China, India and Brazil are adept at meeting these preferences—intensifying competition and introducing new innovations to the global market. In the US, the premiumization of beauty continues to shape the industry landscape.

Shifting demographics present exciting opportunities for growth. Today, 56% of men report an increase in their skincare product purchases compared with five years ago. And consumers aged 45-54 in households with children are driving the growth of prestige skincare sales. The rapidly changing preferences of diverse consumer segments offer untapped opportunities.

Consumers are increasingly drawn to scientifically-backed claims and evidence-based results. Cosmeceuticals, a new category of cosmetic products with bioactive ingredients that claim health benefits, is gaining momentum in the industry. Beauty brands are responding to the movement by shaping portfolios centered on science—not just aesthetics.

A focus on hyper-personalization and community is exemplified by brands using social platforms such as TikTok, where many consumers seek inspiration for their beauty purchases. Brands also leverage augmented reality for virtual try-on experiences to enhance personalized interaction and increase confidence in product selection.

People are increasingly willing to invest in sustainable beauty products that emphasize eco-friendly packaging, cruelty-free formulas and fairtrade practices. Their purchase intentions reflect a deep commitment to ethical consumption, prompting brands to increase transparency about their impact on the environment.