Beauty: How Tomorrow’s Beauty Consumer Will Shop

Why it is the topic trending: A World of Shifting Beauty Paradigms

• Global macro dynamics, including economic shifts, wealth distribution changes, and migration patterns, are significantly reshaping the beauty consumer landscape.

• There's a growing recognition that assuming homogenous customer behavior, even within a single market, is no longer viable for beauty companies.

• The beauty market is experiencing a divergence in spending habits, particularly highlighted by the widening wealth gaps in key markets like the US.

• Generational shifts are playing a crucial role, with Gen Z and Gen Alpha emerging as significant growth drivers in certain regions, while mature markets see increased spending from the over-50s demographic.

• A rising preference for domestic brands in major markets like China, Korea, and India is putting pressure on global players to adapt and enhance their localization strategies.

Overview: Global Shifts and Hyper-Local Beauty

The beauty industry is undergoing a significant transformation driven by evolving economies and political landscapes worldwide. Beauty consumer segments are diversifying, influenced by the rise of middle classes in developing nations and the presence of affluent expatriate communities in regions like the UAE. Migration and urbanization are blending global cultural beauty norms, while increasing wealth polarization is causing traditional spending patterns to fragment. This necessitates that beauty companies move away from one-size-fits-all approaches and embrace hyper-localization of their brands to remain competitive.

Detailed findings: Fragmented Beauty Landscape

• United States: The US beauty market is becoming increasingly fragmented due to widening wealth disparities. The mid-price tier is facing pressure as some consumers cut back on spending across most beauty categories (except fragrance), particularly in haircare. Simultaneously, high-net-worth individuals continue to splurge, driving growth at the premium end. While the use of beauty and spa services is growing, some consumers are trading down or extending the time between appointments. Wellness remains a key growth area, especially in higher price tiers, with skincare and beauty supplements gaining popularity. Brands need multifaceted strategies, including localization efforts like adding Spanish to packaging, to cater to this diverse consumer base.

• China: The Chinese beauty market is showing signs of recovery, but competition is intensifying with the rise of strong domestic brands and the increasing adoption of AI. Young Chinese consumers, especially Gen Z, perceive domestic beauty brands as market leaders due to their perceived value and effectiveness. While foreign brands still hold an advantage in the premium sector, they need to find ways to appeal to value-conscious consumers and compete with local affordability. There's a high level of trust in AI for beauty recommendations, creating opportunities for brands to develop consumer-facing AI tools.

• Europe: European consumers are increasingly prioritizing affordability due to inflation outpacing wage growth. Price sensitivity is shaping purchasing habits, benefiting mass channels like drugstores and grocery stores. Premium brands need to reframe their value proposition through product education and special offerings. The increasing share of immigrants in Europe is leading to demand for a wider range of product assortments catering to diverse skin tones and hair types. European consumers tend to adopt new trends more slowly, offering an opportunity for brands to build loyalty through hero franchises and replenishment products.

• Middle East (UAE & KSA): Rising wealth in the Middle East is fueling the growth of the premium beauty market. Consumers in the UAE and KSA show a greater willingness to pay premium prices for beauty products. There's a high appetite for both new beauty products and services, including spa treatments. While fragrance houses with strong local roots enjoy lasting loyalty, new local brands could emerge in other beauty categories, making real-time marketing crucial. Deep cultural insight is key for success, particularly in niche areas like hair loss treatments and "full glam" makeup.

• Japan & Korea: Societal pressure on appearance remains high in Japan and Korea, particularly among Gen Z and Millennials. Korean consumers are early adopters of at-home beauty tools, indicating a demand for topical products that complement these treatments. Brand competition is intensifying, with consumers prioritizing ingredient transparency, efficacy, and overall experience. Budget-conscious consumers in Korea are increasingly turning to less expensive channels for beauty purchases. While K-beauty has global appeal, signs of domestic fatigue are emerging, with many consumers preferring to stick to familiar brands, a trend likely to become more pronounced with aging populations.

• India & Brazil: Rising incomes in growth markets like India and Brazil are encouraging consumers to increase their beauty spending and trade up to higher-quality products. International brands are still perceived as having superior performance in the premium segment. Consumers in both countries are open to trying new products and brands, with India seeing a surge of local challenger brands focusing on specific local needs. Celebrity endorsement remains a powerful influence in the Indian beauty market. In Brazil, digital direct selling, including live commerce, presents a significant opportunity for beauty brands.

Key success factors of product (trend): Strategies for Beauty Brand Success

• Hyper-localization: Tailoring product offerings, marketing messages, and go-to-market strategies to specific regional and cultural nuances. This includes adapting packaging, shade ranges, and communication channels.

• Understanding Micro-Segments: Avoiding assumptions of homogenous consumer behavior, even within a single market. Brands need to delve into the specific needs and preferences of smaller consumer groups based on factors like wealth, age, culture, and lifestyle.

• Agility and Adaptability: Being able to quickly respond to changing consumer preferences, market trends, and the rise of local competition.

• Value Proposition Refinement: For premium brands in price-sensitive markets, clearly articulating the value of their products through education, gifting, and special occasion offerings.

• Leveraging Technology (AI): Exploring opportunities to build consumer-facing AI tools that can provide personalized beauty recommendations and enhance the overall customer experience.

• Ingredient Transparency and Efficacy: Communicating clearly what makes product formulas unique and staying ahead of ingredient and technology innovation, especially in markets like Japan and Korea.

• Strategic Partnerships: Collaborating with luxury hotels, spas, and clinics in regions like the Middle East to offer branded experiences.

• Celebrity Endorsement (in specific markets): Utilizing on-brand celebrities to build trust, aspiration, and engagement, particularly in India.

• Embracing Digital Direct Selling (in specific markets): Exploring direct sales models and leveraging the potential of live commerce, especially in Brazil.

Key Takeaway: Adapt or Fall Behind in Beauty

The beauty industry in 2025 is characterized by increasing fragmentation and diverse consumer needs. Beauty companies that fail to anticipate these changes across generations and cultures and do not hyper-localize their brands risk losing competitiveness. Agility, deep consumer understanding, and strategic adaptation are crucial for survival and growth in this evolving landscape.

Main trend: The Era of Personalized and Localized Beauty

The overarching trend is the shift towards beauty consumption that is increasingly personalized to individual needs and preferences, as well as deeply localized to specific cultural contexts and market dynamics.

Description of the trend: The Rise of the Individualized and Regional Consumer

This trend signifies a departure from mass-market approaches in the beauty industry. Consumers are no longer a monolithic group; instead, their beauty needs and shopping behaviors are shaped by a complex interplay of factors, including their individual financial circumstances, cultural backgrounds, generational affiliations, and geographic location. This necessitates that beauty brands adopt a highly granular understanding of their target audiences and tailor their offerings, communications, and distribution strategies accordingly.

What is consumer motivation: Diverse Drivers of Beauty Purchases

• Affordability: A significant motivator, especially in markets facing economic uncertainty, driving consumers towards mass-market channels and value-oriented brands.

• Perceived Value and Effectiveness: Key drivers for younger consumers in markets like China, leading them to favor domestic brands.

• Trust in Efficacy: A strong motivation, particularly in markets like China, where consumers readily try new brands based on product claims.

• Price Justification (Premium): In wealthier regions like the Middle East, consumers are more willing to pay higher prices for perceived quality and luxury.

• Desire to Try New Products and Brands: High in growth markets like India and Brazil, as well as in the Middle East.

• High-End Positioning: A motivator for trying new brands among some consumers in the Middle East.

• Societal Pressure: Particularly strong in Japan and Korea, influencing beauty routines and product choices.

• Ingredient Transparency and Efficacy: Increasingly important for discerning consumers in markets like Japan and Korea.

• Aspiration and Influence: Celebrity endorsements heavily influence purchasing decisions in markets like India.

• Wellness and Self-Care: A growing motivation globally, with consumers viewing beauty products as part of their overall well-being.

What is motivation beyond the trend: Underlying Needs and Desires

• Self-Expression and Identity: Beauty products are often used as a means of expressing individuality and conforming to or challenging societal norms.

• Confidence and Self-Esteem: Many consumers seek beauty products to enhance their appearance and boost their confidence.

• Cultural Identity and Belonging: Preferences for local brands in certain markets reflect a desire to support national pride and connect with cultural values.

• Problem Solving: Consumers often seek beauty products to address specific concerns like skincare issues, hair problems, or desired aesthetic outcomes.

• Emotional Well-being: The act of self-care through beauty rituals can provide comfort and a sense of well-being.

Descriptions of consumers: The Modern Beauty Shopper

-Consumer Summary:

• The modern beauty shopper is far from a monolithic entity, exhibiting highly diverse behaviors and preferences shaped by a complex interplay of economic, cultural, generational, and geographic factors.

• Wealth Disparity Creates Divergence: In markets like the US, there's a clear division between high-net-worth individuals who continue to splurge on beauty and a larger segment tightening their belts, leading to a squeezed mid-price tier.

• Generational Power Shifts: Gen Z and Gen Alpha are emerging as powerful consumer groups, particularly in high-growth markets like India, with their preferences significantly shaping market trends. In contrast, the over-50s represent a growing share of beauty spending in mature markets.

• Local Loyalty is Strong: Consumers in China, Korea, and India show a growing preference and trust in domestic beauty brands, often associating them with better value and effectiveness. This necessitates global brands to enhance their localization strategies to compete.

• Tech-Savvy and AI-Curious: Especially in China, consumers are highly receptive to using AI for beauty recommendations and are open to connected beauty devices.

• Price-Conscious Yet Discerning: European consumers are increasingly focused on price due to economic pressures, yet they still seek quality and value. They tend to adopt new trends more slowly, favoring established brands.

• Affluent and Experiential: In the Middle East, rising wealth translates to a thriving premium beauty market with a high appetite for both products and beauty services.

• Pressure and Performance-Oriented: Consumers in Japan and Korea face strong societal pressure regarding their appearance and prioritize product efficacy, ingredient transparency, and overall experience.

• Value-Driven and Influenced: Consumers in India and Brazil, with increasing disposable incomes, are eager to try new products and brands, with celebrity endorsements holding significant sway in India.

• Digitally Engaged: The rise of digital direct selling and live commerce in markets like Brazil highlights the importance of online channels in reaching and engaging consumers.

• Who are them: A diverse group spanning all ages, genders, income levels, cultural backgrounds, and geographic locations.

• What kind of products they like: This varies greatly. Some prioritize affordable mass-market products, while others seek premium and luxury items. Preferences are influenced by regional beauty standards, cultural values, and personal needs (e.g., skincare, makeup, haircare, wellness).

• What is their age?: Spans from Gen Alpha (youngest consumers influencing trends) to older adults (over 50s with increasing spending power in mature markets).

• What is their gender?: While historically focused on women, the beauty market is increasingly inclusive of all genders, with a growing segment of male consumers and gender-neutral products.

• What is their income?: Ranges from low-income consumers seeking value to high-net-worth individuals splurging on luxury. Income level significantly impacts purchasing power and brand preference.

• What is their lifestyle: Diverse lifestyles influence beauty routines and priorities, from busy professionals seeking quick solutions to those prioritizing self-care and wellness rituals.

• What are their shopping preferences in the category article is referring to: This varies by region. Some prefer physical retail (drugstores, department stores), while others increasingly shop online. Channels like direct selling and live commerce are also significant in certain markets.

• Are they low, occasional or frequent category shoppers: All categories exist. Spending frequency is influenced by income, cultural norms, personal interest in beauty, and the specific product category.

• What are their general shopping preferences-how they shop products, shopping motivations): Increasingly informed and research-driven, leveraging online reviews, social media, and influencer recommendations. Shopping motivations range from addressing specific needs and desires to seeking self-expression, confidence, and belonging.

Conclusions: Navigating the Future of Beauty Consumption

The future of beauty consumption is characterized by increasing complexity and fragmentation. Beauty brands must move beyond traditional, generalized approaches and embrace a more nuanced understanding of their target consumers. Success in this evolving landscape hinges on the ability to adapt to regional specificities, cater to diverse needs and preferences, leverage technological advancements, and build genuine connections with consumers based on trust and authenticity.

Implications for brands: Strategic Imperatives for Beauty Brands

• Invest in Deep Consumer Insights: Conduct thorough research to understand the unique needs, preferences, and cultural nuances of specific consumer segments within each market.

• Develop Flexible and Localized Product Strategies: Create product portfolios that can be adapted to meet the specific demands of different regions, including variations in formulations, shades, and packaging.

• Enhance Agility in Supply Chains and Operations: Build the capacity to quickly respond to changing market trends and consumer demands with localized offerings.

• Embrace Digital Transformation: Leverage digital channels for marketing, sales, and customer engagement, including exploring AI-powered personalization and digital direct selling where relevant.

• Foster Authentic Brand Communication: Tailor messaging to resonate with local cultures and values, building trust and credibility with target consumers.

• Explore Strategic Partnerships: Collaborate with local retailers, influencers, and service providers to expand reach and build brand awareness in specific markets.

• Continuously Monitor the Competitive Landscape: Stay informed about the rise of local brands and adapt strategies to effectively compete on value, quality, and cultural relevance.

Implication for society: Societal Shifts in Beauty Norms and Expectations

• Increased Diversity and Inclusivity in Beauty Standards: As cultural norms mix globally and brands cater to diverse consumer bases, societal beauty standards may become more inclusive and less homogenous.

• Empowerment Through Personalization: The focus on individualized beauty needs may empower consumers to embrace their unique characteristics and define beauty on their own terms.

• Potential for Increased Consumption and Waste: The trend towards diverse product assortments and frequent new product launches could potentially lead to increased consumption and environmental concerns related to packaging and waste.

• Influence of Social Media and Technology on Self-Perception: The rise of AI-powered beauty recommendations and digitally driven trends could further impact how individuals perceive themselves and interact with beauty products.

Implications for consumers: A More Diverse and Personalized Beauty Experience

• Greater Choice and Product Variety: Consumers will likely have access to a wider range of beauty products tailored to their specific needs, preferences, and cultural backgrounds.

• More Personalized Recommendations: AI and other technologies may lead to more accurate and personalized product recommendations, improving the shopping experience.

• Increased Access to Global and Local Brands: Consumers will likely see a greater availability of both international and locally produced beauty products.

• Potential for Higher Costs in Certain Segments: Premium and personalized beauty products may come with higher price tags, potentially creating affordability barriers for some consumers.

• Need for Critical Evaluation of Information: With the proliferation of beauty content and AI-driven recommendations, consumers will need to be discerning in evaluating product claims and information.

Summary of Trends:

• Core Consumer Trend: The Rise of the Autonomous Beauty Consumer: Empowered by information and technology, consumers are increasingly making independent and informed beauty purchasing decisions, demanding personalization and authenticity.

• Core Consumer Sub Trend: Localization Over Globalization: Consumers are increasingly favoring brands that understand and cater to their specific local needs, preferences, and cultural contexts.

• Core Social Trend: The Blurring of Beauty Norms: Globalization and migration are leading to a mixing of cultural beauty standards, resulting in more diverse and inclusive perceptions of beauty.

• Social Drive: The Pursuit of Personal Relevance: Consumers seek beauty products and experiences that resonate with their individual identity, values, and aspirations.

• Core Trend: Hyper-Personalization and Micro-Segmentation: Brands are moving towards increasingly granular approaches to understanding and targeting specific consumer niches with tailored offerings.

• Core Strategy: Agile and Adaptive Marketing: Beauty companies need to be flexible and responsive in their marketing strategies to adapt to rapidly changing consumer behaviors and market dynamics.

• Core Industry Trend: The Convergence of Technology and Beauty: Artificial intelligence, connected devices, and digital platforms are playing an increasingly significant role in how consumers discover, purchase, and experience beauty products.

• Core Consumer Motivation: Value Beyond Price: Consumers are evaluating value based on a range of factors beyond just the cost, including product efficacy, brand values, ethical sourcing, and personalization.

Strategic Recommendations for brands to follow in 2025: Actionable Steps for Beauty Brands

• Develop Robust Data Analytics Capabilities: Invest in tools and expertise to gather and analyze consumer data from various sources to gain deep insights into their preferences and behaviors at a granular level.

• Implement Flexible Product Development Processes: Design product development cycles that allow for rapid iteration and adaptation based on localized consumer feedback and emerging trends.

• Build Strong Local Marketing Teams: Invest in talent with deep understanding of local cultures and consumer landscapes to develop and execute effective localized marketing campaigns.

• Explore Partnerships with Local Influencers and Communities: Collaborate with relevant local influencers and engage with community groups to build trust and credibility within specific markets.

• Invest in Multilingual and Culturally Relevant Content: Create marketing materials and product information in local languages and ensure that imagery and messaging resonate with diverse cultural values.

• Develop AI-Powered Personalization Engines: Explore the use of AI to offer personalized product recommendations, virtual try-on experiences, and customized beauty routines for individual consumers.

• Strengthen Supply Chain Resilience and Localization: Optimize supply chains to enable efficient and cost-effective delivery of localized products to different markets.

• Embrace Sustainability and Ethical Sourcing: Increasingly, consumers are concerned about the environmental and social impact of their beauty purchases. Brands should prioritize sustainable practices and transparent sourcing.

Final Conclusion: Embracing Change in the Beauty Landscape

The beauty industry is at a pivotal moment, characterized by a dynamic interplay of global and local forces. Brands that proactively embrace change, prioritize deep consumer understanding, and adopt flexible, localized strategies will be best positioned to thrive in the years to come. The key to success lies in recognizing the increasing individuality of the beauty consumer and meeting their diverse needs with relevant and authentic offerings.

Core Trend Detailed: The Age of Hyper-Personalization and Localization in Beauty

The core trend in the beauty industry for 2025 and beyond is the increasing demand for hyper-personalization and localization. This goes beyond simply offering a wider shade range or translating marketing materials. It signifies a fundamental shift in how beauty products are developed, marketed, and sold, driven by increasingly discerning consumers who expect brands to understand and cater to their unique individual needs and cultural contexts. This trend is fueled by technological advancements that allow for more granular data collection and analysis, enabling brands to create highly tailored products and experiences. Simultaneously, a growing sense of local pride and the desire to support domestic economies are driving consumers in many regions towards local beauty brands.

Key Characteristics of the Core trend: Key Features of Personalized and Localized Beauty

• Data-Driven Customization: Leveraging consumer data to create personalized product formulations, recommendations, and routines.

• Cultural Relevance: Adapting products, packaging, and marketing messages to resonate with specific cultural values, traditions, and beauty ideals.

• Regional Specificity: Tailoring product offerings to address the unique environmental factors, skin concerns, and preferences prevalent in different geographic regions.

• Inclusive Product Ranges: Offering a comprehensive range of products that cater to diverse skin tones, hair types, and beauty needs.

• Localized Marketing and Communication: Using local languages, cultural references, and relevant channels to connect with consumers on a deeper level.

• Agile Supply Chains: Implementing flexible supply chain management to efficiently produce and distribute localized products to specific markets.

Market and Cultural Signals Supporting the Trend

• Widening Wealth Gaps: In markets like the US, the divergence in spending power necessitates different product strategies for value-conscious and high-net-worth consumers.

• Rise of Domestic Brands: The increasing popularity and perceived value of local beauty brands in China, Korea, and India indicate a strong preference for culturally relevant products.

• Aging Populations in Mature Markets: The growing share of beauty spending from the over-50s in Europe and developed APAC requires tailored products and marketing approaches for this demographic.

• Influence of Gen Z and Gen Alpha: These digitally native generations in markets like India are driving demand for specific product categories and brands through their online behavior and preferences.

• Increased Migration: The growing multiculturalism in regions like Europe and the US necessitates broader product assortments to cater to diverse beauty needs.

• Technological Advancements: The development of AI-powered personalization tools and connected beauty devices enables brands to offer highly customized experiences.

How the Trend Is Changing Consumer Behavior

• Increased Demand for Tailored Products: Consumers are less likely to settle for generic beauty products and are actively seeking options that address their specific needs and preferences.

• Greater Emphasis on Local Brands: Consumers are increasingly supporting local economies and brands that align with their cultural identity.

• Higher Expectations for Inclusivity: Consumers expect beauty brands to be inclusive and offer products that cater to a diverse range of skin tones, hair types, and cultural backgrounds.

• More Research and Information Gathering: Consumers are leveraging online resources and social media to research products and seek recommendations tailored to their individual needs.

• Willingness to Try New Technologies: Consumers are increasingly open to using AI-powered tools and connected devices for personalized beauty advice and experiences.

Implications Across the Ecosystem

For Brands and CPGs:

• Significant investment in R&D to develop personalized and localized product formulations.

• Overhauling marketing strategies to focus on micro-segmentation and culturally relevant messaging.

• Developing more agile and localized supply chain operations.

• Building technological capabilities to leverage consumer data and AI for personalization.

For Retailers:

• Adapting store layouts and product assortments to cater to local consumer preferences.

• Investing in technologies that enable personalized shopping experiences.

• Partnering with brands to offer exclusive localized product lines.

• Providing staff with the knowledge and training to cater to diverse customer needs.

For Consumers:

• Access to a wider range of beauty products tailored to their individual needs and preferences.

• More personalized shopping experiences and product recommendations.

• Increased opportunity to support local brands and products that resonate with their cultural identity.

• Potentially higher prices for highly personalized or niche products.

Strategic Forecast:

• Beauty brands that prioritize hyper-personalization and localization will gain a significant competitive advantage in the coming years.

• The use of AI and data analytics will become increasingly crucial for understanding and catering to individual consumer needs.

• Local beauty brands will continue to gain market share in many regions, putting pressure on global players to adapt.

• The beauty shopping experience will become increasingly fragmented, with consumers utilizing a variety of channels, both online and offline, to find the products that meet their specific requirements.

• Sustainability and ethical considerations will play an increasingly important role in consumer purchasing decisions, requiring brands to align their values with those of their target audiences.

Areas of innovation:

• AI-Powered Personalized Formulations: Beauty brands developing AI that analyzes individual skin data to create custom-blended skincare or makeup products.

• Smart Beauty Devices with Localized Recommendations: Connected devices that adapt their treatments and advice based on the user's geographic location and environmental conditions.

• Culturally Tailored Beauty Subscription Boxes: Services that curate beauty products based on the subscriber's ethnicity, cultural background, and local beauty traditions.

• Augmented Reality (AR) for Virtual Try-Ons and Personalized Shade Matching: Advanced AR applications that accurately match consumers with their ideal product shades across different lighting conditions and cultural skin tone nuances.

• Hyper-Local Ingredient Sourcing and Storytelling: Brands focusing on sourcing ingredients locally and highlighting the cultural significance and traditional uses of those ingredients in their marketing.

Final Thought: The Future is Fluid in Beauty

The beauty industry in 2025 is not about static trends but about a dynamic and ever-evolving landscape. The key to success for brands lies in embracing this fluidity, constantly seeking to understand the nuances of their diverse consumer base, and adapting their strategies to meet the ever-changing demands of a global yet increasingly localized market.

Source: https://www.businessoffashion.com/articles/beauty/state-of-fashion-beauty-report-global-markets-consumers-localisation/