2025 Beauty Strategies: How Brands Can Tap Consumers’ Value Focus

Two new reports from Harris Williams and NIQ x GfK suggest that inflation has significantly impacted beauty consumer behavior. Rising prices have led to a shift in purchasing habits, with consumers becoming more budget-conscious and prioritizing value over luxury. That said, U.S. shoppers in particular are forecast to be resilient. Here’s how brands can tap into growth potential for 2025 and beyond.

Global Beauty Shopping Behaviors Shift Toward Value

Chart showing the top 10 consumer sabing strategies.NIQ

Data from McKinsey and Statista supports this hypothesis, suggesting that, globally:

• Consumers are opting for lower-priced or store-brand alternatives to their favorite products.
• There's an increased demand for products that serve multiple purposes, offering value for money.
• Consumers are buying larger quantities or stocking up on products during sales to save money.
• Online shopping has become more prevalent as consumers seek better deals and convenience.
• Beauty subscription boxes have gained popularity as they offer curated products at a discounted price.

Chart showing growth within global beauty market from 2023.Mckinsey & CompanyMcKinsey also says, “As reflected in our regional survey data, India was home to the highest number of consumers who indicated a willingness to spend more on beauty products in 2023 and 2024. This was true across all income groups; in fact, low-income consumers in India were the only low-income consumers in our survey to say they intended to spend more on beauty products through the second quarter of 2024.”

What Influences U.S. Beauty Shoppers in 2024

Harris Williams’ report, published in October 2024, polled 1,250 U.S. beauty enthusiasts to explore their spending behaviors and outlook, their priorities, and how they discover and buy products and services. Some key takeaways from the report include:

• Nearly 90% of U.S. consumers are spending the same or more on beauty and personal care today versus the 2023 survey, driven by inflation and steady consumption.
• Clean and safe products remain a high priority to consumers, but only if they deliver on performance and benefits, which is considered a top criteria for selecting products.
• The number. one skin health priority is daily SPF, and the top beauty products solution for aging well is science-backed skin care.
• Social media and Amazon are gaining influence in product and brand discovery over traditional methods (e.g., browsing, advice), particularly for younger consumers who value TikTok ahead of any recommendations.
• Brands founded by creators with authority (e.g., dermatologists, hair stylists, makeup artists) perform better than other types of creator-founded brands.
• Mass retail and Amazon continue to hold the No. 1 and No. 2 preferred shopping destinations by consumers.

Kelly McPhilliamy, managing director of Harris Williams says "Nearly 95% of consumers plan to spend the same or more on beauty and personal care in the coming year, the same as last year's survey. We found the highest spending in hair and skin care followed by cosmetics, while fragrance gained consumer interest."

Data from the NIQ x GfK report suggest that although volume trends should see some lift as the impacts of inflation dissipate in the U.S. market, select household purchases are still deemed a top priority for consumers.

• Volume growth has favored health and beauty, rising 6% in the 52 weeks ending June 1, 2024
• 45% of consumers surveyed said they would use natural ingredients or food products as substitutes in their beauty care (e.g., beets for skin pigment/blush, rosemary hair oil, etc.).
• 67% of surveyed consumers around the globe say they are likely to change or try a new brand because of its lower price.
• 48% of consumers say they would switch to a cheaper medicinal alternative if it’s considered of equal quality to their usual brand, further supporting how “Affordable + Healthy” drives new value-driven decisioning.

Lauren Fernandes, vice president of global thought leadership, marketing and communications, NIQ says, “With the rapid pace of change in what cycles ‘in’ and ‘out’ of trend, companies need to invest in the right data to guide what priorities lie on the horizon. The key to success here is twofold: Act on unmet needs before consumers ask for them—but not before consumers are ready to embrace real change.”