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Beauty Market Trends in Canada: Premiumization, Innovation, and Regional Diversity Evolve the Beauty Landscape

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  • Writer: Alecsandra Hancas
    Alecsandra Hancas
  • 1 day ago
  • 2 min read

Canada’s prestige beauty market continues to show positive momentum, with dollar sales up +4% in the first half of 2025, although sales are softening following years of unprecedented growth. Nonetheless, Canadians are showing a willingness to pay a higher premium in select segments.


Canadian Beauty Consumers Prioritize Quality in Hair & Fragrance Categories


The fragrance and hair categories are experiencing the highest pricing increases but also growth in units sold as Canadian consumers continue to invest more in these categories. In fragrance, stronger concentrations and longer lasting scents still reign, as do sets with juices only, while younger consumers entering the category are driving sales of body sprays and mists. Canadian consumers are seeking higher quality, luxury products, which is driving demand for parfums, up +37%, and eau de parfums, +16%, as well as emerging segments like premium fragrance oils, up +56% this year. Hair care is another thriving area, with consumers adopting at-home rituals focusing on healthy hair and scalp through nourishing leave-in products that elevate their hair routines.


Innovative Skincare Products Grow in Canada


Speaking of healthy rituals, self-care starts with skincare, and Canadian consumers are paying more for their at-home body skincare routines. Body skincare dollar sales are up +24%, and unit demand grew even faster. Consumers are also looking for skincare benefits in their makeup. We are seeing skincare-based brands enter the prestige makeup space and offering innovative formulations with key ingredients that have skincare benefits like hydrating, mattifying, and others that extend beyond color.


Canada’s beauty consumer base is becoming more diverse, with millennials now the largest generation, marking a significant shift in preferences. Interestingly, smaller- and medium- sized cities are outperforming larger urban centers, highlighting regional differences in growth.


Although the industry growth rate signals a more measured pace after years of rapid growth, nuanced premiumization, category-specific innovation, and regional diversity suggest that Canada’s beauty market is far from stagnant — it’s undeniably evolving.


Up next: a tale of two markets in U.S. beauty 



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Alecsandra Hancas

Industry Analyst, Retail


Alecsandra Hancas has more than 10 years of experience working closely with leading Canadian brands and retailers to build successful marketing, merchandising, and communication strategies. She helps brands deliver their messages and better communicate with their consumers.



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Although the industry growth rate signals a more measured pace after years of rapid growth, nuanced premiumization, category-specific innovation, and regional diversity suggest that Canada’s beauty market is far from stagnant — it’s undeniably evolving.

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