The rise of TikTok Shop and a shift in focus from Gen Z to Gen X are among the beauty trends to know in 2025.
That’s according to NielsenIQ (NIQ), the global intelligence company, which presented its latest insights to members of the beauty industry body CEW UK.
Online beauty was found to be outperforming offline with Amazon gaining share in Western Europe.
But it is TikTok Shop that is set to drive interest and purchases among consumers.
Shoppers on the social media platform are making 3.5 times more orders than the average online buyer over the past year.
Along with fellow giants from China such as Temu, Shein and AliExpress, these platforms make up 15% of online retailer market share.
“E-commerce and social commerce are revolutionising beauty sales globally,” said Claire Marty, Vice President at NIQ.
“Consumers are increasingly experimenting and discovering beauty products through social commerce platforms like TikTok Shop and Temu.
“These platforms, with their engaging and immediate formats, are leading this transformation by offering brands powerful new channels to reach and interact with consumers.
“The ability to drive instant connections and engage consumers ‘in the moment’ significantly boosts purchases.
“As e-commerce continues to grow, finding a balance between offline and online sales becomes crucial.
“Retailers and manufacturers must leverage AI tools and innovative store formats to get more footfalls in physical stores."
Challenges facing in-store experiences include out-of-stock products, messy testers and locked up products to deter shoplifters deterring shoppers and contributing to the over-indexing of online growth.
While Gen Z (currently aged between 13 and 27) and Gen Alpha (born after 2010) are the focus of much attention in the beauty industry, Gen X (aged 45 to 60) is still a significant segment of the market and is predicted to make up 24% of global beauty spend by 2034.
Overall when it comes to categories, fragrance continues to lead the way with growth of 17%, hair care 8% and skin care 6%.
Cosmetics, however, is slowing down, particularly in the US and largely driven by Gen Z.
While the industry is performing well, this is largely driven by inflation and the challenge for brands is driving organic volume growth through optimised pricing and targeting strategies.
Consumer optimism has slightly increased globally, and particularly in the Asia Pacific region. But in Europe and Britain consumers remain more cautious with concerns over inflation and global uncertainty.
“The global beauty market has surpassed the US$1 trillion mark, with projections indicating an additional $700bn in growth over the next decade,” said Sallie Berkerey, MD of CEW UK.
“This tremendous expansion highlights the boundless opportunities for innovation and growth within the sector.
“As the industry evolves, it will be fascinating to see how brands balance the essential in-store experience and personal interactions with the rapid advancements in technology, particularly in AI.”