What: Global beauty sales rose 10% year-on-year, driven by rapid e-commerce growth, AI-powered discovery, and shifting consumer priorities.

Why it is important: The resilience of beauty sales, despite economic pressures, demonstrates the sector's ability to innovate through technology and respond to new consumer values.

The global beauty industry posted 10% year-on-year sales growth, driven by the rapid expansion of e-commerce and the accelerating influence of AI, social commerce, and livestream shopping. Digital channels are now the primary drivers of beauty purchases, with TikTok Shop growing 107.7% and Amazon holding a 23% share — the two platforms now determining where consumers discover products and where they convert. Emerging markets — Latin America, Africa, and Asia Pacific — are leading growth; developed regions show signs of cooling. Consumer behaviour is shifting, with heightened demand for ingredient transparency, multifunctional formats, and wellness-adjacent categories including supplements, sleep products, and functional nutrition. Pricing pressures and inflation have produced a clear divergence in spending: high-income consumers, representing 48% of beauty spend, are driving premium category growth, while lower-income groups are pulling back. Brands best placed to compete are those deploying AI at the point of discovery, leading on ingredient proof, and expanding into the wellness categories consumers now consider part of their beauty routine.

IADS Notes: The Economist (Jan 2026) documents a structural shift in how beauty is bought: e-commerce now accounts for the majority of global beauty purchases, with social commerce platforms — TikTok among them — accelerating the pace of conversion. BCG (Jul 2025) reports that AI is now central to how consumers discover and evaluate products; 87% of retailers deploying AI tools report revenue increases of 6% or more, with personalised recommendation as the primary driver. BeautyInc (Mar 2026) profiles Mexico as a clear example of emerging market outperformance — a market growing 26% in e-commerce, fuelled by digital adoption and the convergence of global brand reach with local consumer demand. Retail News (Sep 2025) reports that Asian retail groups are reconfiguring their offer around wellness and transparency, with experiential formats and sustainability commitments reflecting the priorities of their consumer base. The Financial Times (Feb 2026) puts numbers on premiumisation: South Korean luxury beauty sales up 24%, US fragrance up 17% year-on-year — premium categories outperforming despite broader inflationary pressure on lower-income shoppers.

Global beauty sales rise 10% as e-commerce reshapes the industry