Circana: Lip, hair treatments and skincare fuel beauty’s 2025 performance

CHICAGO — The U.S. beauty industry ended 2025 with strong growth in both prestige and mass retail sectors, continuing to outperform many other consumer industries despite ongoing economic pressures, according to new data from Circana.

Prestige beauty retail dollar sales increased 4% year over year to $36 billion, with unit sales rising at the same rate and average selling prices up by 1%. All prestige beauty segments experienced growth in sales, units, and pricing. In mass retail, beauty sales grew 5% to $72.7 billion, while unit sales increased 2% compared to 2024.

Makeup continued to be the leading prestige category, increasing by 4% in 2025. The growth was mainly fueled by makeup sets and lip products such as liners, oils, and balms, although the overall momentum was slightly slowed by softness in face and eye products. The category's growth was sustained by value-oriented products, social media trends, and the rising popularity of 'skinification,' which blends color cosmetics with skincare benefits. In mass retail, lip products emerged as the fastest-growing segment within makeup.

Hair care performance varied across channels. In prestige, hair was the fastest-growing category by dollar sales, driven by treatments, styling products, and continued growth in scalp care, which marked its third consecutive year of double-digit growth. Hair remains the only prestige category in which online sales account for most retail spending, driven by convenience and repeat purchases. In mass retail, value-focused shampoo-and-conditioner combo packs drove growth in hair care.

Prestige skincare ended the year up 3% in dollar sales and was the fastest-growing category by units sold, rebounding strongly in the second half. Mass skincare grew 6% in both dollars and units, driven by facial cleansers and moisturizers.

Fragrance continued to deliver strong gains across channels. Mass fragrance increased by 15% in dollar sales, while prestige fragrance grew by 5% and remained the second-largest prestige category, although its growth slowed compared to previous years.

“Despite ongoing economic pressures, beauty continues to outperform many other industries, reinforcing its role as a driver of growth across U.S. retail,” said Larissa Jensen, global beauty industry advisor at Circana.