The boom days of beauty appear to be over—for now—but the industry is far from stagnant. NielsenIQ estimates that the current size of the global beauty market is valued at $1.1 trillion, with a projected growth of $700 billion by 2034. New research from the consumer intelligence company found that the global beauty industry is experiencing a solid 7.3% increase in year-over-year (YoY) value.

Beauty Markets Experiencing the Most Growth in 2025

So, where is this growth coming from? The African-Middle East region is experiencing rapid growth, up 27% compared to last year, with Nigeria and Kenya showing notable growth. Latin America (LATAM) is following at 19%, demonstrating strong topline growth in this market segment, particularly in Mexico and Brazil. In both the African-Middle East and LATAM regions, the numbers are in part inflated by a high-inflation market, NielsenIQ notes.

According to Tara James Taylor, Senior Vice President of Beauty and Personal Care at NielsenIQ, skincare is the fastest-growing category in LATAM.

“In Brazil, one of the major trends in skincare right now is the 'massification' of skincare ingredients,” says Taylor. “Lower- and middle-income households now have greater access to popular skincare ingredients that were once primarily available to higher-income consumers. Dermo cosmetics brands such as Principia have gained significant share in 2024.”

North America and Western Europe are growing at a steady rate of 7.8% and +7.7%, respectively. Looking deeper into the Western Europe market, Germany and Spain are experiencing gains, whereas France is facing slower growth driven by mass market in-store declines. In Central Eastern Europe, growth remains strong in Poland, Hungary, and Croatia.

In the Asia Pacific (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 increasing incomes and the influx of new consumers also support the growth.

“APAC will contribute the most in the next decade, with emerging contributions from the Middle East, Sub-Saharan Africa, and LATAM,”, Taylor tells BeautyMatter. “Each region continues to see growth in 2024, but we are seeing slower beauty growth worldwide compared to the previous year as spending slows.”

Where Consumers Shop

Unsurprisingly, e-commerce is the primary engine of global growth. E-commerce platforms account for 41% of all beauty and personal care sales in the US, with online sales in the US continuing to exceed in-store purchases significantly.

In China, the hair and skincare market is dominated by online sales, which account for 87% of the market. Douyin/TikTok Shop alone captures 31% of skincare purchases, though some countries are less engaged in e-commerce than others. Online sales account for only 17% and 10% of beauty product purchases in India and Brazil, respectively.

Social commerce is revolutionizing the e-commerce landscape, with 68% of purchases on these platforms driven by impulse. TikTok Shop rose relatively quickly as the go-to platform for social commerce and is now the 8th largest e-commerce health and beauty retailer in the US, achieving $1 billion in beauty sales. The app has redefined the experience of shopping by prioritizing convenience and encouraging discovery. Approximately 13% of US e-commerce shoppers have made at least one health and beauty purchase through the app, with many returning to shop multiple times.

“TikTok Shop, with its engaging and immediate format, is leading this transformation, offering brands a powerful new channel to reach and interact with consumers,” says Taylor. “The platform's capability to drive instant connections and engage consumers ‘in the moment’ significantly boosts purchases. They cater to all generations through TikTok communities, tutorials, influencers, and engaging content.”

Amazon is another e-commerce platform that has flourished due to convenience. The online retailer has seen growth of 7.3 share points over the past four years, mainly due to competitive pricing, fast shipping, and a wide product selection. Customers often turn to Amazon to replenish their favorite products, and as a result, spending on Amazon continues to increase YoY.

“Convenience is a massive driver for Amazon's success, enabling consumers to shop across all categories in one place—a major appeal for Gen X,” says Taylor. “Ensuring the experience is as frictionless as possible is key to helping retailers succeed. Over the past two years, Amazon has made efforts to enhance its platform, creating a more seamless and personalized shopping experience for beauty buyers.”

While online shopping and social commerce have enjoyed a steady rise over the past few years, in-store retail shopping has remained relatively flat. Customers still shop in-store for high-priced items like skincare, as this allows them to test products before buying or receiving personalized consultations.

However, there are obstacles. Product lockups, messy testers, and empty shelves are all factors negatively impacting the in-store shopping experience. According to NielsenIQ’s data, 43% of US consumers claimed that experiencing theft prevention measures made them less likely to visit the store in the future.

The growth of e-commerce and its ability to capture market share from brick-and-mortar stores has led to a structural shift toward online shopping, driven by changing consumer behavior, particularly among younger generations. Retailers that can successfully connect online product discovery with valuable in-store experiences are winning big, particularly among younger demographics. Approximately 59% of Gen Z makeup shoppers say they shop online and in-store, while 23% use their phone in-store to guide their purchase decisions. Hybrid retail models are set to challenge the conventions of traditional brick-and-mortar.

“Since novelty and fun are key for Gen Z’s shopping experience, creating memorable and unique moments—like Rhode's pop-up stores that draw hours-long lines—helps seamlessly blend online and in-store engagement,” says Taylor. “AI analysis and diagnostic tools are also becoming easily available in stores, particularly in Asia, which can create the personalized experience consumers expect.”

What Consumers Are Buying

Brands that strike a balance between affordability and luxury will win over consumers in 2025. Consumers, especially Gen Z, are likely to look for dupes of premium products and are more trusting of private label brands than years prior. Luxury fragrance brands, including Maison Francis Kurkdjian and Tom Ford, are among the brands regularly searched alongside the term “dupe,” according to Spate.

“Success lies in striking the right balance between efficacy and value, building trust through authenticity that truly resonates,” says Taylor.

So, which beauty categories are most in demand? The US market saw strong growth in the fragrance category, contributing to fragrance leading global market category growth at 17%. Cosmetics, on the other hand, was the weakest category at 3%, with the recent US market slowdown impacting global performance. Compared to the higher penetration in Europe, fragrance has more significant potential for growth in the US and APAC. Taylor is less optimistic about the cosmetics category, but there are still bright spots to be found.

“Overall, cosmetics aren't as strong, but certain formats and product types will find opportunities to thrive as beauty trends evolve rapidly through 2025, driven by the growing influence of social e-commerce platforms like TikTok Shop.”