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Beauty Is a Transforming Industry, Says NIQ’s State of Beauty Report

The sector is embracing digital-first strategies and wellness rituals that are reshaping consumer behavior.

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By: Lianna Albrizio

Associate Editor

Ancient + Brave released its Wild Collagen Powder to support longevity.

The beauty industry is not only thriving; it’s pulling a transforming act!

Per NielsenIQ’s State of Beauty 2025 report, global beauty sales are up 10% year-over-year. The sector is also expanding its definition, embracing digital-first strategies and wellness rituals that are reshaping consumer behavior. And beauty’s resilience is palpable.

Despite economic pressures, consumers are making more shopping trips (+2%), spending more per visit (+8%), and buying more units (+2.6%) — signaling beauty’s role as a daily essential, analysts say.

Asia Pacific leads global growth with an increase of 14.3%, driven by China’s booming hair and skincare market and the meteoric rise of Douyin (TikTok Shop), which grew 49%.

North and Latin America show robust gains, with increases of 9.6 and 10.4%, respectively. Europe remains steady with a 5.8% increase with Western markets yet to regain momentum.

Digital Strategies The Backbone of Beauty Retail

“Beauty is no longer just about appearance — it’s about experience, wellness and digital convenience,” said Tara James Taylor, senior VP NIQ Beauty & Personal Care, NIQ. “Digital-first strategies are now the backbone of beauty retail. Brands must meet consumers where they are — online, on social, and on mobile. Today’s consumer demands flexibility and convenience. Brands and retailers must deliver a cohesive, channel-agnostic experience to stay relevant and capture share, with challengers ready to take a slice of the business.”

The shift to digital is no longer optional — it’s essential, says analysts.

Online beauty sales are growing exponentially, specifically, nine times faster than in-store. North America has grown 21%; Asia Pacific has grown 20%; and Europe 10%. Moreover, emerging markets like Brazil, India and Indonesia are seeing strong digital momentum, driven by mobile-first consumers and the rise of social commerce.

TikTok Shop, currently active in 14 markets, will expand to Japan and Brazil in 2025, further fueling global digital engagement.

Wellness, Beauty’s New Frontier, Expands

A collagen supplement by wellness brand Ancient + Brave supports holistic health.

Beauty is evolving into a holistic lifestyle category, with wellness and ritual-based products expanding the industry’s value opportunity by 64%. Half of global consumers say regular self-care is more important now than five years ago. Moreover, 44% plan to take more vitamins or supplements in the next year. Sixty-three percent say sleep is more important — driving demand for beauty sleep aids like pillow mists, silk pillows and sleep supplements.

Wellness is having a ripple effect into adjacent categories like sexual wellness, stress relief, immunity boosters and more.

‘Tweakments’ Transform Skincare Routines

Non-invasive cosmetic procedures — dubbed “tweakments” — are reshaping traditional skincare habits, analysts say. So much, in fact, tweakments are not only replacing skincare — they’re redefining it. Consumers are recalibrating routines based on results and recovery; 35% of US consumers say they will change their skincare routine after a procedure, often simplifying or trading down.

Global attitudes, however, vary. In China, 47% view tweakments as a complement to skincare.
In Saudi Arabia, 25% see them as a full replacement. In France, 37% view them only for specific concerns. Globally, 29% view them as a complement, while 30% say they’re not necessary — the highest skepticism among surveyed countries.

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