NIQ Reports: The Global Beauty Industry's Sales Grew by 7.3% YoY
On February 24th, Nielsen IQ (NIQ), a leading global consumer research and retail measurement, announced that global beauty industry sales increased by 7.3% year-on-year.
Latin America, Africa, and the Middle East saw the largest growth rates, while North America and Western Europe also showed strong growth trends of +7.8% and +7.7%, respectively. In the Asia-Pacific region, South Korea, India, Thailand, Singapore, and New Zealand are emerging as leading markets, contributing to overall sales growth. Inflation is the primary driving force behind this global expansion, but rising incomes and an influx of new consumers also drive growth.
E-commerce Leads the Retail Revolution
E-commerce is driving global beauty and personal care product sales, with varying growth levels across regions.
In China, 87% of total hair care and skincare sales are achieved through online channels. In India, online purchases for beauty products accounts for 17%, while in Brazil, this figure is less than 10%. Despite these differences, when it comes to beauty and personal care products, online sales surpassing physical stores is the trend.
Online sales in the United States continue to significantly surpass offline sales, with beauty and personal care products sold through e-commerce platforms accounting for 41% of total sales. Over the past four years, platforms like Amazon have gained 7.3 percentage points in market share through competitive pricing, fast delivery, and extensive selection. Increasingly, consumers are turning to Amazon as their shopping channel, with spending rising year after year. Although digital commerce has achieved tremendous growth in the past five years, physical retail has remained largely unchanged. Future retailers need to enhance in-store experiences to meet modern consumer demands.
Consumer preference for e-commerce stems from both market expansion and share taken from physical stores. The shift towards online shopping is not only a trend affected by the pandemic, but also a structural change in consumer behavior, especially among the younger generations.
The Global Rise of Social Commerce
TikTok Shop has surged to become the eighth largest health and beauty electronics retailer in the United States, achieving $1 billion in beauty sales. 12.5% of U.S. online shoppers have purchased health and beauty products through this app, and many of them make repeat purchases. In China, 31% of skin care product consumption comes from Tiktok. Tiktok Shop has become the first choice for consumers to discover brands, learn about and test new products.
Despite the rise of digital commerce, physical retail remains significant. Consumers prefer in-person tactile experiences and personalized consultation services, especially in high priced products such as skincare. Retailers need to balance convenience with customer satisfaction, and invest in hybrid models that seamlessly combine online discovery with offline experiences.
Tara James Taylor, Senior Vice President of Beauty and Personal Care at NIQ, said, "In the rapidly changing beauty industry, success in 2025 is a delicate balance. The dynamic changes between innovation and tradition, affordability and luxury, sustainability and scalability, personalization and inclusivity are reshaping the market for beauty brands and retailers. For businesses aiming to thrive in this trillion dollar global beauty market, finding the right balance point is crucial."
