Key Takeaways:Beauty growth outpaces retail, driven by tech, wellness, and social commerce.AI personalization and wearables are reshaping beauty discovery and purchasing.TikTok Shop, transparency, and simplified routines define the next phase of beauty’s growth.
Health and beauty spending in the UK has now reached a record 60 consecutive months of growth, standing apart from the broader retail sector, which is still grappling with economic pressures and reduced discretionary spending. According to Barclays Consumer Spend data, UK consumer spending on health and beauty rose 10.7% year-over-year (YoY) in 2025, following 7.1% growth in 2024. The average beauty consumer spent £291 ($394.97) annually in 2024, rising to £328 ($445.18) in 2025.
The category’s strength extends globally. Nielsen data shows global beauty sales grew 10% over the past year, with 20% of consumers planning to increase beauty spending in 2026. This sustained performance highlights beauty’s unique resilience. Often described as the “lipstick effect,” the category benefits from consumers’ willingness to treat beauty purchases as small, accessible luxuries even during periods of economic restraint.
But continued growth will depend on how brands adapt to shifting consumer expectations around technology, retail access, transparency, and wellness. Across the industry, five structural shifts are reshaping beauty’s growth playbook.
AI and Wearables Are Powering Hyper-Personalized Beauty
Artificial intelligence (AI) is rapidly transforming how consumers discover and purchase beauty products. AI-powered tools that analyze skin conditions, recommend products, or stimulate makeup application have moved from novelty to mainstream adoption. According to Boots’ Beauty and Wellness Report 2026, 64% of UK adults have used AI tools to guide beauty purchases in the past six months, while 82% actively seek personalized beauty solutions.
At the same time, wearable technology is beginning to intersect with beauty routines. Sensor-enabled devices, from smart skincare masks to biometric-tracking wearables, allow users to collect real-time data on skin health, hydration, and environmental exposure.
Consumers who have adopted beauty tech are spending significantly. Barclays data shows average annual spending of £97.80 ($132.38) on beauty-specific tech and £136.80 (£185.68) on wearable devices. While adoption remains relatively niche (only around 4% consumers report purchasing beauty tech products), investment levels suggest strong engagement among early adopters. The broader beauty tech market is now valued at approximately $18 billion globally, with further innovation expected as products currently in development reach retail shelves. For brands, the implication is clear: Future product development must increasingly align with data-driven beauty ecosystems.
TikTok Shop Is Redefining Beauty Distribution
Social commerce continues to reshape beauty retail. In 2025, TikTok Shop became the UK’s fourth-largest beauty retailer, after posting 60% YoY growth. Beauty is now the second-largest product category on the platform, reflecting the sector’s deep integration with creator culture and social discovery.
For emerging brands, the platform has become a powerful launchpad. Social-first companies can generate rapid awareness, convert engagement directly into sales, and scale faster than through traditional retail channels. Skincare label Beauty of Joseon and K-beauty brand Medicube have both leveraged TikTok Shop to drive discovery and sales through creator-led tutorials, while digitally native brands such as SHEGLAM and Sacheu Beauty have built global audiences through influencer-driven content and short-form video.
The model is evolving further as TikTok increases its focus on attracting established beauty brands alongside challenger companies. The platform is positioning itself as a fully integrated retail ecosystem. The success of brands like The Beauty Crop demonstrates how social commerce can accelerate growth trajectories from early-stage startups to large-scale retail expansion. The brand has built over 10.5 million product views on TikTok, indicating significant discovery and engagement via social media.
Digital Sales Dominate Premium Beauty
Beauty’s digital transformation and acceleration accounted for a rising share of beauty revenue, growing from 28% to 40% of total sales, according to the British Beauty Council’s Value of Beauty report (2025). By 2024, nearly half of UK premium beauty purchases will be completed online.
Despite this shift, physical retail remains an important part of the discovery process. Fragrance testing, shade matching, and tactile product experiences still drive consumers into stores. As a result, many brands are adopting hybrid retail strategies: using physical stores for product discovery while relying on e-commerce for repeat purchases.
Retailers are also experimenting with more flexible formats. Pop-ups, short-term retail activations, and partnerships with emerging brands help stores maintain their experiential appeal while managing rising real estate costs. For beauty brands navigating retail expansion, the future likely lies in strategic physical presence combined with digital-first distribution.
Transparency and Science as Competitive Advantages
Consumers are increasingly demanding greater transparency from beauty brands. According to research from the Circana, 68% of consumers actively seek skincare products made with “clean” ingredients. Expectations around transparency extend beyond ingredient lists. Sixty percent of consumers want brands to disclose ingredient sourcing, while 72% want clear explanations of ingredient functions.
The shift reflects a broader behavioral trend. Just as consumers are scrutinizing food ingredients and reducing their consumption of ultra-processed products, they are applying similar scrutiny to beauty products. Scientific credibility is becoming a key differentiator. Brands invested in research teams, clinical testing, and ingredient education are better positioned to build consumer trust.
Retailers are responding as well. Companies like Holland & Barrett invest in dedicated scientific expertise to support product claims and reinforce credibility in wellness-driven categories.
Longevity in Simplified Routines Is Reshaping Product Demand
Wellness-driven beauty is also influencing product formulation and routine design. Barclays consumer spend research shows 53% of consumers plan to focus more on well-being in 2026, contributing to growth in supplements, collagen products, and longevity-focused skincare.
Collagen products alone have seen dramatic growth, with Boots reporting a 62% YoY increase in sales, particularly in formats such as gummies that integrate easily into daily routines. At the same time, consumers are simplifying their beauty regimes. The rise of skin and “skinimalism” reflects a growing preference for streamlined routines and multifunctional products.
Research from Mintel found that 29% of women shifted toward multifunctional skincare products during the pandemic. In comparison, 52% of consumers say that they are willing to pay more for products that save time or simplify routines. Among Gen Z consumers, that figure rises to 62%. The trend signals a shift away from complex, multistep routines towards products that deliver multiple benefits in fewer steps.
The Future of Beauty Retail
Beauty’s sustained growth reflects a category that continues to adapt to consumer behavior faster than many other parts of the retail sector. Across the industry, success increasingly depends on the combination of technology integration, social commerce fluency, science-backed product development, and strategic retail partnerships.
While e-commerce will remain a primary growth driver, brands are now operating within a multichannel ecosystem that includes social commerce platforms. Experiential retail spaces and digitally powered personalization tools also contribute to growth.
As technological innovation accelerates and consumer expectations evolve, brands that remain agile, leverage data-driven insights, and meet consumers where they shop will be best positioned to sustain growth in the years ahead.