CHICAGO – Beauty’s position at the intersection of self-care, personal expression, and affordable luxury has enabled prestige and mass beauty retail segments to sustain growth in 2026.
That’s according to an analysis by Circana of beauty sales through the year’s first three quarters. Consumers’ willingness to spend on beauty at a time when discretionary purchases are being curtailed bodes well for retailers as they head into the year-end holiday season, Circana says.
"Beauty continues to outperform many discretionary industries because consumers view these products as both functional and emotionally rewarding," says Larissa Jensen, global beauty industry advisor for Circana. “Whether investing in a luxury fragrance, a results-driven skin care treatment, or everyday hair care essentials, consumers are making strategic purchases that help them look and feel their best."
Beauty sales at prestige retail were up 5% to $25.5 billion through September, Circana says. Unit sales across major categories were also up from previous-year levels.
The mass retail beauty market brought in $57.4 billion in sales, a 7% increase from the comparable period last year. Unit sales were slightly higher, primarily on strength in the skin care and fragrance subcategories.
In prestige retail, fragrance generated $6.2 billion in sales through September, increasing +5% year over year. Performance was driven by fragrance juice products, particularly perfume and eau de parfum. Fragrance ancillaries including body oil, lotion, and cream experienced an acceleration of growth compared to 2025.
In mass retail, fragrance delivered stronger gains, with dollar sales increasing +15%. As the holiday season gets underway, fragrance remains well positioned due to its emotional resonance, gifting versatility, and broad appeal across consumer demographics. Premium fragrances and fragrance gift sets are expected to be among the season's strongest beauty performers.
In the prestige market, skin care generated $7.4 billion in sales through September, a 7% year-on-year improvement. The number of units sold increased by double-digits, making it the fastest-growing major beauty category in this channel, according to Circana’s point-of-sale data.
Growth was supported by strong consumer interest in facial treatments including serums and devices, body care, sun care, and efficacy-focused solutions.
In mass retail, skin care sales were up nearly 8% in dollar terms. Subcategories including hand and body lotion, facial cleansers, facial anti-aging products, and suntan products generated some of the largest gains, reflecting consumers' prioritization of daily wellness, prevention, and maintenance.
Sales growth in makeup was comparable across prestige and mass retail. In the prestige segment, makeup sales grew 3% to $8.1 billion, fueled by continued demand for complexion products such as concealer, blush, bronzer, and setting products. Meanwhile, lip color and eye shadow returned to growth, signaling a rebound in more expressive beauty looks.
At mass retail, cosmetics sales rose more than 4%, with many of the same trends driving performance, including strength in blush, bronzer, and color-focused products. Together, these results suggest consumers are moving beyond minimalist routines and embracing a balance of skin-focused enhancement and creative self-expression.
The hair category continues to benefit from consumers' focus on hair health and scalp wellness. In prestige retail, hair sales increased 7%, to $3.7 billion through September. Treatment products remained the category's fastest-growing segment.
In the mass market, the category also delivered solid growth, with category sales rising nearly 6%. Consumers continued to trade up within specialized formats, including treatment products, combo packs, styling products, and premium shampoos and conditioners.
Holiday outlook: small luxuries will shine
Because beauty satisfies both gifting and self-reward occasions, the category is primed for a strong holiday season, Circana says.
Consumers are expected to prioritize purchases that feel special without requiring a major financial commitment, benefiting categories such as fragrance, prestige skin care, and gift sets. As shoppers balance budgets, they will continue to seek value through promotions, cross-channel shopping, and more affordable alternatives in everyday beauty routines.
"The fourth quarter of the year will be defined by selective splurging," Jensen asserts. "Consumers still want to celebrate, gift, and treat others and themselves during the holidays, but they're approaching those purchases with greater intention. Beauty remains a bright spot because it offers a unique combination of practicality, self-expression, and affordable luxury that resonates across a wide range of shoppers."
