NEWS > 22 September 2025
BY KACEY CULLINEY
Consumer price sensitivity is rising as global economic uncertainties continue, carving out a future of more thoughtful consumerism in beauty and a clear need for brand differentiation, say experts.
Key Takeaways:
Last year, premium and prestige represented close to half of the entire global beauty industry with a shared retail value of 335.91 billion USD–just behind mass at 343.03 billion USD, according to data analytics firm Euromonitor International. In 2024, premium beauty and personal care products accounted for 175.29 billion and prestige 160.61 billion, with both categories forecast to grow in the coming years. Skin care holds the lion's share of both categories, followed by colour cometics and then hair care, according to Euromonitor International data, though hair care is forecast to grow fastest.
So, despite ongoing global economic uncertainty, the premium and prestige beauty categories continue to be important. But how exactly can these higher ends of industry thrive in today's landscape? And where exactly are the growth opportunities?
“Given the likelihood of a trade war in 2025 that involves the largest economies, consumers globally are anticipating higher inflation and rising prices,” said Yang Hu, Asia Pacific Insight Manager for Health and Beauty at Euromonitor International.
Michael Nolte, SVP Creative Director at BEAUTYSTREAMS, said beauty businesses certainly have to be working strategically today. “The global beauty market is experiencing a period of unprecedented complexity and opportunity,” Nolte explained. “Consumers are demanding more performance, more personalisation, more sustainability, whilst also navigating new values around wellness, inclusivity, and conscious consumption. This has resulted in a hyper-competitive environment where differentiation is crucial and innovation must be both meaningful and measurable.”
Nolte said the upcoming Cosmoprof Worldwide Bologna 2026 trade fair represents an ideal platform for global beauty businesses to connect and innovate in the face of today's shifting consumer market. “Cosmoprof Worldwide Bologna is the heartbeat of the global beauty industry,” he said.