NielsenIQ’s State of Beauty 2026 report has shown the global beauty market grew ten percent year-on-year, with e-commerce expanding six times faster than in-store sales.
The findings highlighted a rapid shift to digital-first, AI-influenced commerce across key global markets.
As consumer expectations evolve toward convenience, personalisation, and seamless digital experiences, beauty brands are under increasing pressure to adapt.
From AI-powered product discovery to social commerce and livestream shopping, the path to purchase is becoming more dynamic, requiring brands to move faster and engage consumers across an increasingly complex ecosystem.
Key Findings from State Of Beauty 2026 report:
- Global beauty sales grew ten percent year-over-year, driven by strong digital acceleration.
- E-commerce is growing six times faster than in-store sales, reshaping channel strategy.
- 49 percent of consumers are willing to pay more for locally made products, reflecting rising demand for authenticity and trust
- 52 percent will pay a premium for convenience, as time-saving solutions drive purchase decisions
- 63 percent of consumers prioritise mental wellness, signalling continued expansion of holistic beauty
Beauty is entering a new phase of growth defined by both resilience and rising complexity.
“Consumers are more intentional in how they spend, seeking products that deliver real value, simplicity, and wellbeing,” said Tara James Taylor, SVP, Beauty Vertical, NIQ.
“At the same time, AI and digital commerce are transforming how consumers discover and evaluate products, shifting advantage to brands that show up clearly and consistently across digital ecosystems.”
Digital behaviours have accelerated this transformation. More than half of consumers have now explored AI-enabled shopping tools, with 49 percent already receiving beauty recommendations from generative AI.
Social commerce has continued to gain momentum, with 53 percent of consumers purchasing through social platforms and 22 percent buying directly via TikTok Shop.
In China, livestreaming accounts for 70 percent of beauty sales on platforms like Douyin, underscoring the growing importance of content-driven commerce.
These shifts have redefined how products are discovered, validated, and purchased, turning online engagement into immediate conversion and driving sustained category growth.
As AI, social commerce, and digital ecosystems reshape the consumer journey, brands that invest in intuitive, transparent, and data-driven experiences will be best positioned to build trust and capture growth in the next era of beauty.
