3 Signs the Beauty Industry is on the Verge of Transformation

The beauty industry is not only thriving — it’s transforming before our very eyes.

That’s according to the global consumer intelligence company NielsenIQ. In its recently released State of Beauty 2025 report, NIQ points to global beauty sales up 10% YOY and clear signs the industry is expanding its definition, integrating wellness, and embracing digital-first strategies in ways that are rapidly reshaping consumer behavior.

“Beauty is no longer just about appearance,” says Tara James Taylor, Senior VP NIQ Beauty and Personal Care. “It’s about experience, wellness, and digital convenience.”

Here are the top three takeaways from the report.
 

Image from NielsenIQ's State of Beauty 2025 report
  (NielsenIQ State of Beauty 2025)

 

1. Wellness is Beauty’s New Frontier

With wellness products and ritual-based self-care expanding the industry’s value opportunity by 64% — beauty is evolving into a holistic lifestyle category, the report says.

Some key findings:

  • 50% of global consumers say regular self-care is more important now than five years ago;
  • 44% plan to take more vitamins or supplements in the next 12 months;
  • 63% say sleep is more important, driving demand for beauty sleep aids;
  • Brands are entering adjacent categories including stress relief, sexual wellness, immunity boosters, and more.

 

2. The Shift to Digital is No Longer Optional

Online beauty sales are growing 9x faster than in-store and North America leads all global markets with 21% digital growth, the report shows.

Social commerce plays a huge role in that boom, with the TikTok Shop now active in 14 international markets and counting.

ChatGPT is another key factor, the report says, as shoppers the world over run more than a billion beauty-related inquiries every week on the OpenAI tool. ChatGPT is planning a future integration with Shopify to streamline purchases directly resulting from such interactions.

“Digital-first strategies are now the backbone of beauty retail. Brands must meet consumers where they are — online, on social, and on mobile,” Taylor says.

“Today's consumer demands flexibility and convenience. Brands and retailers must deliver a cohesive, channel-agnostic experience.”

Woman shopping for beauty products online

 

3. Medspa “Tweakments” are Changing Skincare Habits

With the accelerating popularity of minimally invasive cosmetic procedures such as Botox, fillers, laser treatments, and microneedling, consumers are adjusting their skincare purchasing based on results and recovery.

“Tweakments are not replacing skincare,” the report says, “they’re redefining it.”

That attitude is prevalent in the U.S., where Botox is the most frequent “tweakment.” In the States, 25% of consumers plan to seek minimally invasive medspa services in the future; and 35% say they change up their skincare products after such procedures.

Young woman getting microdermabrasion
  (Getty Images)

Heading into the holiday season, the report says, the beauty industry is expected to buck a global sales downturn and see another record-setting year.

“Beauty’s resilience is undeniable,” the consumer research group says. “Despite economic pressures, consumers are making more shopping trips, spending more per visit, and buying more units — signaling beauty’s role as a daily essential.”