Beauty retail sees broad growth in 2025, Circana finds

CHICAGO — Beauty continued to be one of the top-performing categories in U.S. retail in 2025, with both prestige and mass channels posting gains despite ongoing pressure on discretionary spending, according to new data from Circana.

Prestige beauty dollar sales increased by 4% year over year to $36 billion, supported by simultaneous growth in unit sales and a modest 1% rise in average selling price. Growth was widespread, with all major prestige categories showing gains. In mass retail, beauty sales grew 5% to $72.7 billion, while unit sales also rose 2%, underscoring the category’s role as a key driver of traffic and margins for large-format retailers, drug stores, and grocery chains.

Makeup remained the largest prestige beauty category, increasing by 4% for the year. Growth was driven by makeup sets and lip products, including liners, balms, and oils, while softer demand for face and eye products affected overall unit performance. Retailers benefited from value-oriented offerings, strong social media influence, and ongoing consumer interest in “skinification,” products that combine color cosmetics with skincare benefits. In the mass channel, lip products were also the fastest-growing makeup segment.

Hair care emerged as a standout in prestige retail, delivering the fastest dollar growth of any beauty category. Treatments, styling products, and scalp care led gains, with scalp care marking its third consecutive year of double-digit growth. Hair remains the only prestige category where online sales make up the majority of spending, driven mainly by convenience and replenishment habits. In mass retail, shampoo and conditioner value packs were the fastest-growing hair segment, highlighting consumers’ focus on affordability.

Skincare continued to perform well across all channels. Prestige skincare ended the year up 3% in dollar sales, rebounding strongly in the second half, while mass skincare grew 6% in both dollars and units, driven by facial cleansers and moisturizers.

Fragrance had another strong year, especially in mass retail, where sales increased 15%. Prestige fragrance grew 5%, although growth began to normalize after several years of rapid expansion.

“Despite ongoing economic pressures, beauty continues to outperform many other industries,” said Larissa Jensen, global beauty industry advisor at Circana, noting that beauty remains an “accessible indulgence” for consumers and a reliable growth engine for retailers.