What: The global beauty market is booming, with spending reaching $440bn in 2024 and outpacing overall retail growth, driven by social media influence, new customer segments, and the “lipstick effect” during economic uncertainty.

Why it is important: The beauty sector’s rapid growth demonstrates how digital innovation, social media influence, and new consumer segments are reshaping retail and driving demand even in challenging economic times.

Despite a backdrop of economic uncertainty and subdued consumer sentiment, the global beauty industry has emerged as a retail bright spot, growing at 7% annually and reaching $440 billion in 2024. This surge is fueled by the “lipstick effect,” with consumers indulging in affordable luxuries during tough times, but also by deeper shifts: social media and influencer culture are driving new beauty standards, expanding the market to include men, children, and younger generations. Science-backed brands, ingredient transparency, and the blurring of lines between beauty and medicine are reshaping product innovation and marketing, while experiential services and non-surgical procedures are expanding the definition of beauty retail. Upstart brands leverage digital platforms to build rapid followings, and industry giants are consolidating their positions through high-profile acquisitions. The sector’s resilience and dynamism highlight the power of digital transformation, customer-centricity, and creative marketing to fuel growth, even as other retail categories struggle.

IADS Notes: The global beauty market is undergoing a profound transformation, as confirmed by multiple recent sources. Forbes (March 2025) reports that e-commerce and social platforms now account for more than half of global beauty sales, with social commerce driving 68% of purchases worldwide and TikTok emerging as a major retail force, especially among younger consumers. Monocle (December 2025) and Journal du Net (April 2025) highlight how digitalisation, social media filters, and influencer culture are accelerating the spread of new beauty standards, fueling demand for both traditional products and medical-grade services, and enabling upstart brands to build rapid followings. McKinsey (February 2025) and Vogue Business (February 2025) emphasize the industry’s rapid adoption of generative AI, with early adopters like Estée Lauder and L’Oréal leveraging hundreds of custom GPTs to drive operational efficiency, hyperpersonalization, and new product development. EuroNews (December 2025), WWD (October 2025), and Glossy (November 2025) document how department stores and traditional retailers are investing in experiential beauty, advanced technology, and exclusive services to compete with digital-first platforms and specialty chains. BCG (May 2025) and Inside Retail (March 2025) note that US teens and Gen Z are driving 23% annual growth in the beauty market, with omnichannel shopping behaviours and earlier product adoption reshaping the landscape. The rise of experiential beauty hubs in Asia (Retail News, September 2025), the surge in luxury beauty sales in South Korea (Inside Retail, March 2025), and Ulta Beauty’s global expansion and marketplace launch (BoF, October 2025) further illustrate the sector’s shift toward omnichannel integration, curated experiences, and digital innovation. Collectively, these developments show that the beauty industry’s growth is being propelled by digital transformation, social media, experiential retail, and the convergence of beauty, wellness, and technology.

Why the beauty industry is booming