- Larissa Jensen
- Feb 10
- 3 min read
CHICAGO, February 10, 2026 – The U.S. beauty industry closed 2025 with healthy gains across the prestige and mass markets, as its consumers continued to embrace innovation, premium experiences, and hybrid beauty solutions. According to Circana, LLC, prestige beauty retail dollar sales grew by +4%, year over year, to reach $36 billion in 2025, as unit sales rose at the same rate and average selling price (ASP) experienced an uptick of +1% — with all pillar categories growing on all metrics. In comparison, beauty sales in mass retail experienced a dollar increase of 5% to $72.7 billion, and unit sales grew by +2%, compared to 2024.
Makeup remained the largest prestige beauty category in 2025, growing +4%. All prestige makeup segments posted dollar growth, though unit softness in face and eye makeup curbed the overall momentum. Top gaining segments included makeup sets, lip liner, and other lip products such as oils and balms. Value, social media, and the “skinification” trend – hybrid formats that blend color and skincare benefits — anchored much of makeup’s growth. Mirroring prestige, lip was also the fastest-growing makeup segment in the mass market and also driven by products such as lip liner and lip treatments.
Contrary to the mass market where it was among the softer performers, hair was the fastest growing category based on dollar sales in the prestige market. Growth was driven by hair treatments and styling, and scalp care remained a standout performer, marking its third consecutive year of doubledigit growth. Innovation accelerated, with launches up over +20%, led overwhelmingly by hair treatments. Hair remains the only prestige beauty category where online accounts for the majority of retail sales; according to Circana’s Omnibus survey, the top reason for U.S. consumers to buy hair products online is convenience, followed by replenishment. Value emerges as a key element in the mass market, where the fastest-growing hair segment was shampoo and conditioner combo packs.
Prestige skincare concluded the year with +3% dollar growth and as the fastest-growing category based on units sold. Despite a soft first half, the category rebounded in the second half and outpaced both makeup and fragrance during the holiday period. Momentum was fueled by facial skincare — prestige’s largest skincare segment — which posted its strongest sales month in November. At mass retail, skincare delivered a solid +6% increase in both dollars and units, driven primarily by facial cleansers and face moisturizers.
Fragrance had another strong year across retail. Though the smallest category in the mass market, fragrance was the fastest-growing, rising +15% in dollars and units grew at nearly the same rate. Prestige fragrance grew +5% in dollars and closed the year as the second-largest segment in prestige retail. While prestige fragrance growth in Q4 was positive, makeup, skincare, and hair all outpaced during the holiday season. After several years of extraordinary expansion, the prestige fragrance market demonstrated signs of normalization in 2025. Innovation and premiumization trends stemming from luxury brands, higher concentrations such as perfume, and the popularity of mini sizes remained influential.
“Despite ongoing economic pressures, beauty continues to outperform many other industries, reinforcing its role as a driver of growth across U.S. retail,” said Larissa Jensen, global beauty industry advisor at Circana. “Since the pandemic, beauty remains an accessible indulgence, giving consumers a way to invest in themselves and support their mental well‑being -- a mindset that has become a meaningful driver behind its performance. However, while consumers continue turning to beauty products for confidence and self-expression, the dynamics shaping their choices are changing. Brands that lean into value, wellness, and innovation—and respond to evolving behaviors with transparency and purpose—will be best positioned to succeed.”
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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