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Beauty shoppers splurge on small luxuries while seeking value, Accenture Holiday Survey finds

Younger consumers drive increased holiday beauty spending as shoppers balance indulgence, discounts and AI-powered discovery.

Photo by Microsoft Edge / Unsplash

NEW YORK — Beauty and personal care shoppers plan to spend more this holiday season, underscoring the category's resilience as an affordable luxury despite ongoing economic pressures, according to new findings from Accenture's 20th Annual Holiday Shopping Survey.

The survey found that U.S. beauty and personal care shoppers expect to spend an average of $885 during the 2026 holiday season, a 16% increase from $764 in 2025. Nearly half (49%) of shoppers planning to increase their spending say treating themselves is a key reason behind the higher budget.

The findings, based on a representative sample of 1,393 U.S. beauty and personal care shoppers within a broader survey of 4,048 consumers, also reveal that shoppers are becoming more value conscious. Mass merchants and warehouse clubs have emerged as the most popular holiday shopping destination for beauty purchases, while generative AI is increasingly influencing how consumers discover products and compare prices.

"Even as financial pressures persist, beauty shoppers are still making room for small luxuries," said Audrey Depraeter-Montacel, global beauty industry lead at Accenture. "What stands out is where the opportunity is concentrated: younger consumers are much more likely to say their holiday budgets will increase, while the desire to treat themselves remains part of the equation."

Younger Consumers Fuel Beauty Spending Growth

The survey found spending increases are being led by younger generations. Nearly half of millennials (46%) and Gen Z shoppers (44%) expect their holiday budgets to rise this year, compared with just 18% of baby boomers.

Millennials expect to spend an average of $1,088, while Gen Z consumers anticipate spending $1,005, both well above the overall beauty shopper average of $885.

Beauty and personal care also climbed from the sixth-most-popular planned holiday purchase category in 2025 to fifth place in 2026, ranking behind clothing and accessories, gift cards, food and beverages, and toys and games.

"Beauty is uniquely positioned during the holidays because it serves both gifting and self-expression," Depraeter-Montacel said. "Whether consumers are buying for themselves or preparing for seasonal celebrations, beauty products continue to hold a meaningful place in holiday spending."

Value Becomes a Key Shopping Driver

While shoppers are increasing spending in the category, they are also looking for ways to maximize value.

Nearly half (48%) of beauty shoppers plan to purchase holiday gifts from mass merchants and warehouse clubs, up from 34% last year, making those retailers the top channel for holiday beauty purchases. Online retailers rank second at 43%, up from 38% in 2025, while discount stores increased to 38% from 34%.

Among shoppers planning to spend more this season, 53% cited higher prices as one factor contributing to their increased budgets.

AI Expands Its Role in Beauty Shopping

Generative AI is rapidly becoming part of the beauty shopping journey. Half of beauty shoppers say they plan to use AI tools during the holiday season to discover products, compare options and find value, double the share reported in 2024.

Nearly three in 10 consumers say they would trust a personal AI shopping agent more than themselves. However, shoppers remain cautious about relinquishing control. While 79% are open to collaborating with an AI agent and 64% would allow one to execute tasks on their behalf, only 19% would delegate purchase decisions entirely and just 7% would allow an AI agent to make purchases independently.

Consumers also show a preference for retailer- or brand-specific AI experiences. Among shoppers who favor retailer AI agents, 39% cite confidence in data security and payment protection, while 38% believe retailers are best positioned to deliver the most competitive prices and deals.

Physical Stores Maintain Their Appeal

Despite growing digital and AI engagement, physical stores remain an important part of the beauty shopping experience.

Beauty shoppers expect to divide holiday purchases almost evenly between online channels (52%) and stores (48%). Forty-four percent said the ability to see, touch or try products would motivate them to visit a physical store, making it the strongest in-store draw identified in the research.

Even among shoppers who actively use generative AI, respondents expect 45% of their holiday purchases to take place in stores.

"Today's shoppers are looking harder for value and using more tools and channels to find it," Depraeter-Montacel said. "This holiday season could be a tipping point for conversational AI in beauty retail. The opportunity for brands is to make discovery and comparison easier while preserving the creativity, experience and personalization that consumers value most."

Accenture's 20th Annual Holiday Shopping Survey surveyed 4,048 U.S. consumers between Aug. 13 and Sept. 1, 2026. The beauty and personal care findings are based on a representative sample of 1,393 shoppers who indicated they planned to purchase beauty and personal care products during the holiday season. Respondents included Gen Z consumers (13%), millennials (35%), Gen X consumers (28%) and baby boomers (24%). Data was also collected in the U.K., Canada, Brazil, France, Germany, Spain, Sweden, Italy and Australia.

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