Key Takeaways:

• Wellness is redefining how consumers discover and buy beauty.
• Masstige and value-driven innovation are outperforming traditional beauty segments.
• AI is transforming beauty discovery, recommendations, and purchasing decisions.

During her presentation “The Beauty Industry in 2026: Current Landscape and Future Outlook” at BeautyMatter 2026 State of Play, Larissa Jensen, Senior Vice President and Global Beauty Advisor at Circana, argued that beauty consumers are navigating a far more complex decision-making process than ever before. While beauty has traditionally been driven by aspiration and self-expression, purchasing decisions are now equally influenced by wellness and affordability, reflecting a broader shift in how consumers define value.

"Not long ago, beauty was driven by a simple question: What do I want to look like?," Jensen said. Today, she argued, that question has evolved. Consumers are asking, "What do I need to feel like?" as beauty becomes more closely linked to self-care and emotional well-being. At the same time, persistent economic pressures mean a third question is shaping purchasing decisions: "What can I afford to prioritize?"

Rather than replacing one another, these three priorities now exist simultaneously. Consumers are balancing appearance, well-being, and tighter budgets every time they shop, creating a more nuanced beauty market where brands must deliver emotional, functional, and financial value. According to Jensen, understanding these competing priorities will be critical as wellness, technology, and new commerce models continue to reshape the future of the beauty industry.

Beauty Continues to Earn Its Place in Consumer Budgets

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