Euromonitor International 2025: key trends in the beauty industry

By: Barok Eszter Date: 2025. 04. 28. 14:20

According to Euromonitor International’s 2025 research, the global value of the beauty and personal care industry reached USD 614.4bn in 2024, which was an increase of USD 45.3bn compared to the previous year.

This article is available for reading in Trade magazin 2025/5.

Euromonitor International’s latest research analyses the beauty and personal care markets in 99 countries, providing a comprehensive picture of key trends. Consumers are looking for premium quality, affordability and promotions. The industry’s long-term growth rate is above average, with a compound annual growth rate (CAGR) of 8.1% between 2024 and 2028, and an 8% growth in 2024. Asia-Pacific is the biggest market, accounting for almost one third of the global industry.

Top trends in the beauty industry

Digitalisation and technological development: the beauty industry is more and more active in the online space, with social media platforms serving not only as a marketing tool but also as a sales channel. AI and digital technologies have a big influence on product development, customer experience and education. A balance between premiumisation and affordability: although demand for premium products is growing faster than the mass market segment, price-sensitivity remains a key factor. Consumers are willing to spend more on products that are proven to be effective, contain natural ingredients or are multifunctional. Demand for multifunctional products: shoppers are looking for products that offer multifunctional solutions to meet several needs at once. Cosmetics that combine moisturising, sun protection and skin care are gaining ground.

Ingredient-centric beauty care: consumers are now paying bigger attention to ingredient transparency and efficacy. The rise of dermocosmetic products, dermatologically tested formulations and the ingredient-led beauty trend have made shoppers pay higher prices for products with proven efficiency. A holistic approach to beauty care: women’s beauty trends are intertwined with a health and wellness approach, which is transforming the market. Consumers are no longer buying cosmetics purely for aesthetic purposes, but also to support their emotional wellbeing, hormonal balance and overall health.

Drivers for the industry in the next few years

According to Euromonitor International’s study, AI will be the most influential technology in the beauty industry over the next five years, with 45% of respondents prioritising it. Generative AI follows closely behind, with 38% expecting the technology to have an impact, particularly in personalised product recommendations and advanced skincare solutions. AR/VR technologies (30%) will help develop digital trials and interactive shopping experiences, while IoT (22%) will enable the integration of smart devices in beauty care. How companies balance innovation, sustainability and affordability is going to be of paramount importance in the next few years. //

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