Nielsen IQ: The global beauty and personal care industry value has increased by 7.3% compared to the same period last year.

NielsenIQ, the world's leading consumer insights and market research consulting company, revealed that the global beauty and personal care industry has achieved a steady growth of 7.3% compared to the same period last year. Latin America and the Africa-Middle East region lead the growth, with the most significant increases, while North America and Western Europe also showed strong growth rates of 7.8% and 7.7% respectively. In the Asia-Pacific region, countries like South Korea, India, Thailand, Singapore, and New Zealand are becoming key markets, driving the overall value growth. Inflation is the main driver of this global growth, but increases in income and the influx of new consumers also support the growth. E-commerce leading the retail revolution: E-commerce is driving the sales of beauty products globally, with varying levels of growth in different regions. In China, an impressive 87% of total sales of hair care and skincare products is achieved through online channels. In India, 17% of beauty products are purchased online, while in Brazil, this proportion is less than 10%. Despite these differences, online sales surpassing physical stores is a growing trend for beauty and personal care products. In the United States, online sales continue to significantly outperform in-store purchases, with e-commerce platforms accounting for 41% of total sales of beauty and personal care products. In the past four years, platforms like Amazon have increased their market share by 7.3 percentage points, thanks to competitive prices, fast delivery services, and a wide range of product choices. More and more consumers are choosing Amazon as their shopping channel, with annual spending increasing each year. Although digital commerce has seen tremendous growth in the last five years, physical retail remains relatively stable. Future retailers need to enhance the in-store experience to meet the needs of modern consumers. Consumers' preference for e-commerce is driven by market expansion and the gradual loss of market share by physical stores. The shift to online shopping is not only a trend driven by the pandemic but also a structural change in consumer behavior, especially among the younger generation. Rise of global social commerce: Social commerce has become a global trend, with 68% of purchases on these platforms being impulse buys. TikTok stores have emerged as the eighth-largest e-commerce health and beauty retailer in the US, with beauty product sales reaching $1 billion. 12.5% of US e-commerce customers have purchased health and beauty products through the app, and many have made multiple purchases. In China, 31% of skincare product purchases come from TikTok stores. TikTok stores have become popular platforms for consumers to discover brands, learn about and try new products. While digital commerce is on the rise, physical store retail still holds significance. Consumers enjoy the hands-on experience and personalized consultation services, especially for high-value items like skincare products. Retailers need to strike a balance between convenience and customer satisfaction and invest in a hybrid model that seamlessly combines online discovery with offline experiences. Tara James Taylor, Senior Vice President of Beauty and Personal Care at NIQ, said, "In the ever-changing beauty industry, success in 2025 is a delicate balance. The dynamic relationship between innovation and tradition, affordability and luxury, sustainability and expandability, personalization and inclusivity is reshaping the market landscape for beauty product manufacturers and retailers. Finding the right balance is crucial for companies seeking to thrive in the trillion-dollar global beauty market."