In 2025 it’s not just about looking good, it’s about feeling good. And as consumers worldwide are increasingly prioritising wellbeing, beauty is emerging as a key player in the self-care economy.
Within the general merchandise and consumer packaged goods (CPG) industries tracked by Circana, beauty continues to perform extremely well, which isn’t a huge surprise with beauty uniquely positioned at the heart of the dominant drivers of consumer behaviour: self-care, nostalgia, and aspiration.
As consumers take a more proactive approach to their wellbeing, the lines between beauty and wellness are blurring and becoming intrinsically linked. This opens new growth pathways for beauty brands that can deliver products and experiences that help consumers feel better, not just look better.
The self-care revolution
Self-care has evolved from being reactive to proactive, encompassing mental and social health, lifestyle habits, and energy. This shift presents growth opportunities for beauty retailers and brands, as consumers seek products that promote peace, relaxation, anxiety reduction, and improved health.
Products endorsed by experts, such as those providing energy-boosting, protein-rich, and sugar-free benefits, are particularly appealing. By focusing on self-care, beauty retailers and brands can tap into this expanding market and meet the evolving needs of their customers.
Consider this…
- 46% of women are dedicating more time to skincare
- 32% are applying makeup to support their wellbeing
- 31% are styling hair more frequently to boost their mood
- 26% are using fragrance to lift their spirits
- 23% are turning to candles and diffusers for an emotional reset
Driving innovation: Transforming growth with technology and data
Building personalised brand experiences and customer loyalty will require retailers to leverage technology and data to enhance the delivery of these efforts and stimulate growth.
Investing in advanced data analytics will help retailers understand consumer preferences with certainty, enabling them to deliver hyper-personalised promotions and tailored product recommendations.
AI technologies can enhance productivity and efficiency by precisely harnessing customer data, to anticipate consumer desires and deliver an elevated customer experience.
Through this, beauty retailers can strengthen customer relationships, encourage repeat purchases, and ultimately drive loyalty and sales.
Optimising the experience economy
In the experience economy, consumers desire to escape everyday life and beauty brands must go beyond product and create meaningful moments that elicit joy. Whether it’s a relaxing at-home ritual, a smart mirror try-on in store, or a curated gift set that feels personal — it’s about the feeling, not just the function.
Consumers want brands that “get” them; they want to feel special and heard by the brands they love. The retailers and brands that work to deliver positive experiences whether that be at home or in the salon/spa will have the greatest success and will become part of their customers’ everyday wellbeing — not just their shopping habits.
The single source of truth for beauty
The beauty market is increasingly being shaped by channel shifts and a surge of indie brands. In a world with rapidly changing products and distribution models, it’s critical to know what is selling, where, why, and for how much. Circana monitor beauty industry trends across the globe, from the big picture down to the category, geographic region, and store levels, based on best-in-class point-of-sale (POS) and consumer data to build a deep understanding of what is happening and what is expected to happen.
This intelligence is extremely valuable especially when looking at new product forecasting, segmentation, price and promotion evaluation, market forecasting, and more. Quality data is essential to enable smarter decisions, faster execution, and future-ready strategies to meet the needs of consumers today and also tomorrow.
The beauty industry is poised to thrive in 2025, but the rules have changed. Retailers and brands that invest in personalisation, data-driven innovation, and wellness-led experiences will lead the next chapter of beauty retail.
Read the AUTUMN ’25 issue of Retail Beauty below:
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