KUALA LUMPUR, Feb 25 (Bernama) -- NielsenIQ (NIQ), a leading consumer intelligence company, has announced a 7.3 per cent year-over-year growth in the global beauty industry.
The Latin American and the Africa-Middle East regions lead with the biggest growth, while North America and Western Europe are also showing robust growth rates of 7.8 per cent and 7.7 per cent, respectively.
In the Asia Pacific region, South Korea, India, Thailand, Singapore, and New Zealand are emerging as leading markets, contributing to overall value growth. Inflation is a major driver of this global expansion, but the growth is also supported by increasing incomes and the influx of new consumers.
NIQ senior vice president of beauty & personal care, Tara James Taylor emphasised that succeeding in the rapidly evolving beauty industry in 2025 will require balancing innovation with tradition, affordability with luxury, and sustainability with scalability.
“Finding the right balance will be crucial for those aiming to thrive in the US$1 trillion global beauty market,” she said in a statement.
E-commerce continues to drive the beauty industry's sales, with varying growth rates across different regions. In China, a staggering 87 per cent of hair and skincare sales occur online, while in India and Brazil, the figures are much lower, at 17 per cent and under 10 per cent, respectively. Despite these variations, one overarching trend is the dominance of online sales over in-store sales.
In the United States (US), online beauty sales account for 41 per cent of all beauty and personal care sales, with platforms like Amazon gaining share through competitive pricing, fast shipping, and a broad product range. While online sales have surged over the past five years, in-store retail has remained relatively stagnant, highlighting the need for retailers to transform the in-store shopping experience.
The shift toward e-commerce is not just a pandemic-driven trend but represents a fundamental change in consumer behaviour, especially among younger generations.
Additionally, social commerce is on the rise globally. Platforms like TikTok Shop are now major players, becoming the eighth-largest e-commerce beauty retailer in the US, contributing US$1 billion in beauty sales. This trend underscores the growing influence of social commerce in the beauty sector. (US$1=RM4.40)
Despite the surge in digital sales, in-store retail still holds its relevance, especially for high-investment items like skincare, where consumers value the tactile experience and personalised consultations.
Moving forward, retailers will need to strike a balance between convenience and customer satisfaction, integrating online and in-store experiences to meet modern consumer expectations.
-- BERNAMA
