Key Takeaways:  

• Value consciousness, treatment‑led demand, and digital acceleration shape performance.
• Mass and prestige beauty are growing at nearly the same rate for the first time in five years.
• E-commerce now accounts for nearly half of prestige dollars and the majority of units sold.

The US beauty industry performance was nearly on par across both the prestige and mass retail sides of the business in the first quarter of the year. According to Circana, prestige retail dollar sales grew by 6% to $8.1 billion in Q1 2026, compared with the same period last year, while mass retail sales rose by 7% to $18.1 billion. Unit demand followed a positive trend line, with units sold in both prestige and mass retail posting low-single-digit growth.

Across the total beauty landscape, growth was largely value driven, with dollar growth outpacing units, reflecting both premiumization and selective consumer spending. 

“Mass and prestige beauty are growing at nearly the same rate for the first time in five years,” said Larissa Jensen, global beauty industry advisor at Circana. “Fragrance, facial skincare, hair treatments, and personal care products like body lotion and wash continue to benefit from consumers prioritizing self-care, elevated routines, and wellness driven products. We expect these areas to remain strong this year, as shoppers continue to shop across channels, seeking affordable yet high-performing beauty products that feel good and work well.”

Makeup Category

• Softest-performing category in Q1 across both prestige and mass, with modest dollar growth offset by declining unit demand.
• There were pockets of strength that emerged in lip and face. Lip treatments and lip liner stood out as top performers across both channels, driving growth in dollars and units.
• Blush and bronzer also posted solid gains.

Hair Category

• A clear channel divide emerged.
• It was the fastest-growing prestige category by dollars and a top unit driver (second only to skincare), fueled by continued strength in treatments.
• In mass retail, value-seeking behavior drove double-digit growth in shampoo and conditioner combo packs.

Skincare Category

• Skincare remained a steady growth engine.
• Prestige gains were led by facial care; face creams, serums, and eye treatments collectively drove the majority of category growth.
• Clinical brands captured over one-third of dollar sales, reinforcing the importance of science-backed positioning.
• Skincare also showed broad-based strength at mass retail, with nearly all face and body segments growing in both dollars and units.

Fragrance Category

• Fragrance was among the strongest performers overall across both channels.
• In mass, growth was driven by double-digit increases in women’s fragrances.
• In prestige, higher-value formats, luxury offerings, and continued momentum in minis (also growing double digits) underscored both trade-up and trial-driven behaviors.

Online vs. Offline

• Online and social shopping continued to capture share of beauty retail, reinforcing a structural shift in how consumers discover, trial, and replenish products.
• In the prestige market, online sales outperformed brick and mortar across all major categories, with skincare delivering the most notable inflection point.
• E-commerce now accounts for nearly half of prestige dollars and the majority of units sold.
• Social commerce is further accelerating this shift, with beauty emerging as the dominant category on TikTok Shop in 2026, with beauty and personal care leading all categories in Q1, capturing 20% of TikTok Shop dollar spending.
• Launched in late 2023, TikTok Shop already represents 10% of total beauty e‑commerce sales, underscoring its rapid ascent as a meaningful retail channel.

“Digital and social platforms are no longer just a testing ground for emerging brands; they are full‑scale commerce engines,” said Jensen. “For both established players and smaller brands, success increasingly hinges on how effectively digital and social plans are embedded into marketing and product strategies. Rather than optional or additive, these platforms must be foundational to how brands build relevance, drive demand, and scale growth.”