Stat: Beauty industry faces slower growth amid shifting consumer landscape

Global – The global beauty industry, valued at £325bn ($441bn, €382bn), is entering a period of slower growth and is projected to expand by 5% annually until 2030, down from 7% between 2022 and 2024. This market cooling is attributed to economic uncertainty, coupled with market saturation. Additionally, 63% of consumers doubt that premium beauty products outperform mass-market ones. 

According to The State of Fashion: Beauty Volume 2 report, fragrance stands out as the strongest performer, with an anticipated 6% annual growth. There is a significant shift in priorities, with only 13% of people now considering famous founders a key purchase driver. Instead, shoppers are increasingly value-conscious and seeking product efficacy over hype. 

Beauty executives are keenly aware of these changes, with 75% citing scrutiny on perceived value as the biggest theme shaping the industry. Brands are urged to recalibrate value propositions and invest in R&D to meet evolving demands for product performance and to develop compelling brand stories. 

Our recent Brand Innovation Debrief: Refy showcases a clear path to success by prioritising community building and delivering highly effective products. This approach perfectly aligns with our New Codes of Value macrotrend. Our analysis in this report highlights an emerging mindset driven by resourcefulness and a strong demand for value for money.