As the 2024 holiday season approaches and advent calendars drop, beauty brands find themselves navigating a rapidly evolving retail landscape shaped by shifting consumer expectations, technological advancements, and even macroeconomic challenges. According to the newly released Revieve Holiday Report 2024, this year’s beauty trends reflect a blend of resilience, innovation, and adaptability. The holiday period, traditionally the most lucrative quarter for beauty retailers, has seen a significant transformation in purchasing behavior, with consumers increasingly prioritizing personalization, sustainability, and value-driven shopping experiences.
According to Statista, the 2024 total value of retail sales made during the holiday season is estimated to reach £96 billion ($121 million) in the United Kingdom alone, an increase from the previous year’s value of approximately £93 billion ($117 million), despite economic pressures such as inflation and reduced discretionary spending. Salesforce predicts a YoY global sales growth of 2% for November and December, totaling $1.19 trillion, and a 2% YoY increase in sales growth in the United States, reaching $277 billion. According to PwC, despite 59% of consumers saying that inflation will probably influence their holiday spending this year, overall spending is projected to increase by 7% to an average of $1,638 per shopper, with shoppers planning to make beauty purchases during Black Friday and Cyber Monday, emphasizing the importance of digital-first strategies for brands seeking to capture a significant share of this revenue.
Another pivotal theme in 2024 is the role of Artificial Intelligence (AI) in driving personalized shopping experiences. 47% of consumers have reported that AI-driven tools such as virtual try-ons, skincare diagnostics, and product matching services have influenced their purchase decisions this year. While these tools not only enhance convenience and build trust by ensuring that customers invest in products tailored to their unique needs, it also highlights how fast technology is being integrated into the beauty ecosystem. This report explores the major trends outlined in the Revieve Holiday Report 2024, focusing on personalization, sustainability, omnichannel strategies, and the growing importance of generational shifts in holiday spending.
Personalization and the Rise of AI-Driven Experiences
One of the most significant findings in the Revieve Holiday Report is the growing influence of AI-powered personalization in holiday beauty shopping. The report highlights that 64% of beauty consumers now expect personalized recommendations as part of their online or in-store shopping journey. This represents a 12% increase compared to the 2023 holiday season, reflecting the continued integration of AI into retail experiences.
Virtual try-on technologies have become a critical tool for beauty brands, particularly during the holiday season when gift-giving accounts for a significant portion of purchases. These tools allow shoppers to preview makeup products or skincare effects digitally, reducing the likelihood of returns and increasing consumer confidence. For instance, brands utilizing AI-driven shade-matching tools saw a 31% higher conversion rate compared to those that did not, according to the report. It also highlighted that using Revieve solutions, transaction growth surged to 89%, as against the 72% baseline growth.
In addition to try-ons, skincare diagnostics remain a high-growth area. Approximately 58% of consumers surveyed indicated they were more likely to purchase skincare products after using AI-based diagnostic tools that analyzed their skin’s hydration, texture, and overall health. This has proven particularly effective in capturing Gen Z and millennial audiences, who prioritize data-backed recommendations. The integration of AI into the holiday shopping experience isn’t just about technology, but also about understanding the consumer on a deeper level and delivering solutions tailored to their needs. For brands, especially color cosmetics and skincare brands, investing in AI is no longer optional, but a competitive necessity.
Sustainability as a Key Driver for Holiday Purchases
Sustainability has emerged as a core consideration for beauty consumers in 2024, particularly during the holiday season. According to the report, 67% of shoppers are actively seeking sustainable or eco-friendly products for their holiday gifting, with 20% of brands catering to consumers with sensitive skin. This shift is fueled by heightened awareness of environmental issues and the growing demand for ethical production practices.
The report underscores that brands focusing on refillable packaging, carbon-neutral shipping options, and cruelty-free certifications are capturing a greater share of consumer spending. Sales of refillable beauty products saw an increase of 364% in the first half of 2022, and this is expected to continue into 2024. Leading brands such as Lush and Fenty Beauty have introduced sustainability-focused initiatives that appeal to environmentally conscious shoppers, including limited-edition collections made from recycled materials.
Additionally, the use of clean ingredients has become a non-negotiable for many consumers. According to a Worldmetrics survey, 68% of consumers state that they are willing to pay more for products that are free from harmful chemicals. This indicates that shoppers prioritize these products even when making holiday purchases, and reflects a broader cultural shift toward wellness and health-focused beauty. For the beauty industry, the takeaway is clear. Sustainability has become a driving force behind purchasing decisions, and brands that fail to adapt to these expectations risk alienating a rapidly growing segment of the market.
Omnichannel and Multi-Category Dominance: Seamless Shopping Experiences Across Platforms
The 2024 holiday season emphasizes the importance of omnichannel and multi-category strategies in beauty retail. As consumer shopping journeys become increasingly fragmented, brands must provide a seamless experience across multiple touchpoints, from online platforms to in-store engagements, to improve purchasing behaviors and add-to-cart trend. The Revieve Holiday Report reveals that purchase completion rates rose to 74% (by Q3 2024), from 65% (Q4 2023), underscoring the need for a well-integrated omnichannel approach, and how the holiday season can boost consumer purchasing intent. Multi-category shoppers are also driving engagement. According to the report, engagements in the number of products tried on in the cosmetics category drove up to 43.5%.
Brick-and-mortar stores remain an essential part of the holiday shopping experience. According to Capital One Shopping, in May 2024, the e-commerce share of monthly retail sales dollars declined 12.2% from its peak in November 2023, while the in-store share increased 2.55%. It also recorded that in 2023, total seasonally adjusted in-store retail sales dollars increased 2.36%, while seasonally adjusted e-commerce sales dollars increased 11.3%. 81% of shoppers also report using online platforms to research products before making a final in-store purchase. This behavior highlights the importance of creating a consistent brand narrative and cohesive customer experience across all channels.
Interactive in-store experiences, such as personalized consultations and AI-powered kiosks, are becoming increasingly popular. Retailers like Sephora and Ulta Beauty are leading the charge by integrating digital tools into their physical locations, allowing consumers to explore products virtually before trying them on physically. This hybrid approach not only enhances convenience but also fosters greater brand loyalty. For the beauty industry, the priority should be investing in digital tools that bridge the gap between online and offline shopping experiences. This includes developing mobile-optimized platforms, enabling click-and-collect services, and training in-store staff to deliver tech-enhanced customer support.
From AI-driven personalization and sustainability to omnichannel strategies and generational insights, this year’s trends underscore the importance of adaptability and innovation in capturing consumer loyalty.
As the holiday season generates billions in global beauty sales, brands that align their strategies with these emerging trends will be well-positioned to succeed. By prioritizing personalization, embracing sustainability, and delivering seamless omnichannel experiences, beauty companies can not only boost holiday sales but also build lasting connections with their customers in an increasingly competitive market.
