What's Happening?
The U.S. beauty industry experienced significant growth in the third quarter of 2025, according to Circana. Prestige market sales increased by 4% to $24.1 billion, while mass market sales rose by 5% to $54.5
billion. Fragrance sales were particularly strong, with prestige fragrance sales increasing by 6% to $5.9 billion. The makeup category within prestige retail posted $7.9 billion in sales, up 3% from the previous year. Skincare sales also performed well, with prestige skincare sales reaching $6.7 billion, a year-over-year increase of 1%. The prestige hair category showcased an 8% increase to $3.5 billion. Larissa Jensen, a global beauty industry advisor at Circana, noted that the beauty industry is poised for a strong holiday season, with one-third of consumers planning to gift beauty products.
Why It's Important?
The growth in the beauty industry indicates a robust consumer demand, which is crucial for economic stability and expansion. The increase in sales across various segments, including fragrance, skincare, and haircare, suggests a positive consumer sentiment and willingness to spend on personal care products. This trend is particularly significant as it reflects broader economic health and consumer confidence. The beauty industry’s performance can also impact related sectors such as retail and e-commerce, driving further economic activity. Additionally, the focus on self-care and gifting during the holiday season highlights changing consumer priorities and the potential for increased sales in the coming months.
