CHICAGO, November 12, 2026 – The U.S. beauty industry continued to demonstrate resilience through the first nine months of 2026, supported by consumers' willingness to invest in products that deliver performance, wellness benefits, and pockets of indulgence. While shoppers remain value conscious, beauty's position at the intersection of self-care, personal expression, and affordable luxury has enabled both the prestige and mass beauty retail markets to sustain growth.
According to Circana, LLC, beauty sales at prestige retail reached $25.5 billion through September 2026, growing +5% compared to the same period last year, while units also increased, signaling continued consumer demand across major categories. The mass retail beauty market brought in $57.4 billion in sales, a gain of +7% versus last year and a small lift in units sold, driven by skincare and fragrance.
"Beauty continues to outperform many discretionary industries because consumers view these products as both functional and emotionally rewarding," said Larissa Jensen, global beauty industry advisor for Circana. "Whether investing in a luxury fragrance, a results-driven skincare treatment, or everyday hair care essentials, consumers are making strategic purchases that help them look and feel their best."
In prestige retail, fragrance generated $6.2 billion in sales through September, increasing +5% year over year. Performance was driven by fragrance juice products, particularly perfume and eau de parfum. Fragrance ancillaries including body oil, lotion, and cream experienced an acceleration of growth compared to 2025. In mass retail, fragrance delivered stronger gains, with dollar sales increasing +15%. As the holiday season gets underway, fragrance remains well positioned due to its emotional resonance, gifting versatility, and broad appeal across consumer demographics. Premium fragrances and fragrance gift sets are expected to be among the season's strongest beauty performers.
In the prestige market, skincare generated $7.4 billion in sales through September, growing +7%, while units sold grew double digits, making it the fastest-growing major beauty category in this channel. Growth was supported by strong consumer interest in facial treatments including serums and devices, body care, sun care, and efficacy-focused solutions. In mass retail, skincare also continued to perform well, growing nearly +8% in dollars and mid-single-digit unit growth. Categories such as hand and body lotion, facial cleansers, facial anti-aging products, and suntan products generated some of the largest gains, reflecting consumers' prioritization of daily wellness, prevention, and maintenance.
Makeup category growth was similar across both prestige and mass retail. In the prestige market, makeup sales grew 3% to $8.1 billion, fueled by continued demand for complexion products such as concealer, blush, bronzer, and setting products. Meanwhile, lip color and eye shadow returned to growth, signaling a rebound in more expressive beauty looks. At mass retail, cosmetics sales rose more than 4%, with many of the same trends driving performance, including strength in blush, bronzer, and color-focused products. Together, these results suggest consumers are moving beyond minimalist routines and embracing a balance of skin-focused enhancement and creative self-expression.
The hair category continues to benefit from consumers' focus on hair health and scalp wellness. In prestige retail, hair sales increased by 7%, to $3.7 billion in sales through September. Treatment products remained the category's fastest-growing segment. In the mass market, the category also delivered solid growth, with category sales rising nearly 6%. Consumers continued to trade up within specialized formats, including treatment products, combo packs, styling products, and premium shampoos and conditioners.
Beauty’s Holiday Outlook: Small Luxuries Will Shine
Beauty is well positioned for the holiday season because it satisfies both gifting and self-reward occasions. Consumers are expected to prioritize purchases that feel special without requiring a major financial commitment, benefiting categories such as fragrance, prestige skincare, and gift sets. As shoppers balance budgets, they will continue to seek value through promotions, cross-channel shopping, and more affordable alternatives in everyday beauty routines.
"The fourth quarter of the year will be defined by selective splurging," said Jensen. "Consumers still want to celebrate, gift, and treat others and themselves during the holidays, but they're approaching those purchases with greater intention. Beauty remains a bright spot because it offers a unique combination of practicality, self-expression, and affordable luxury that resonates across a wide range of shoppers."
About Circana
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behavior driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set, and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy.
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