According to Circana data, the US prestige beauty market grew by 2% to $16 billion, while sales at mass merchants increased 4% to $34.6 billion in the first half of 2025.
“The beauty industry’s latest results are indicative of a consumer who is focused on efficacy and elevated value,” said Larissa Jensen, global beauty industry advisor at Circana. “Only 14% of US beauty buyers believe that higher prices indicate a better-quality product. The mass and prestige markets are converging, with premium-priced brands in mass retail and value-priced prestige brands outperforming their counterparts. As the industry faces tariff uncertainties and shifting consumer sentiment, adaptability and strategic agility are essential for success in 2025.”
- The largest growth in prestige was in the fragrance category. Sales increased by 6% to $3.9 billion and grew on all metrics including units sold and average selling price.
- Sales accelerated in the second quarter compared to the first quarter, with new fragrance brand launches playing a significant role in this growth.
- New products represented nearly one-third of total fragrance dollar gains.
- High concentrations, particularly eau de parfums and parfums, continued to drive the most significant impact.
- Simultaneously, consumers gravitated towards more affordable options, with mini/travel size juices growing by 15% in units sold—nearly four times the rate of other sizes.
- Fragrance was the fastest-growing category in the mass market, up 17% based on dollar sales, and driven by women’s fragrances.
- 80% of volume comes from prestige, so mass is a smaller piece that’s growing faster.