The U.S. beauty industry grew across all metrics through the third quarter (Q3) of 2025, according to Circana. Below are also the key highlights and takeaways across the beauty landscape, stepping into the holiday season.

From January through September 2025, prestige market sales increased by 4% to $24.1 billion, and units sold were also up 4% over the same period last year. 

Sales in the mass market increased 5% to $54.5 billion, and units sold grew 2%. 

Larissa Jensen, global beauty industry advisor at Circana—and a member of Beauty Packaging’s Board of Advisors, said,

“The beauty industry had a really stellar third quarter and, in fact, the growth rate has ramped up when we compare the past three quarters of 2025, which bodes well stepping into the holiday season.” 

Fragrance

Prestige fragrance sales increased by 6% to $5.9 billion. 

High concentrations, including eau de parfums and parfums, continued to make the greatest impact. 

Consumers continue to drive sales on both the higher and lower sides of the pricing spectrum: luxury fragrance brand sales rose by double-digits, while mini/travel size juices grew by 12% in units, and mini/discovery fragrance sets were up 41%. 

Fragrance was the fastest-growing category in the mass market, up 17% based on dollar sales and double digits on a unit basis.

Color Cosmetics

The makeup category within prestige retail posted $7.9 billion in sales through September, up 3% versus the prior year, and experienced a lift in terms of units sold. 

A particularly strong Q3 ushered in a positive performance across all makeup segments – eye, face, lip, nail, and sets. 

Lip products continued to outperform the other segments – and in the mass market, as well – while prestige eye makeup returned to growth after a decline in 2024.

Skincare

Prestige skincare sales reached $6.7 billion, posting a year-over-year increase of 1%. It is the only category where units are growing at a faster rate than dollars. 

Masstige brands continue to outpace the growth of both mass and prestige brands, increasing by 14% through September.

Facial skincare, the largest segment, experienced a modest lift, driven primarily by e-commerce. 

Body and sun care grew at the fastest rates, with gains across both the brick-and-mortar and e-commerce channels, though faster online. 

Skincare sales also fared well in the mass market, with face serums and facial moisturizers two of the fastest-growing areas of the market. 

Haircare

The prestige hair category showcased an 8% increase to $3.5 billion, and units sold were also up. 

All prestige hair segments reported growth, ranging from a single-digit increase for shampoos and conditioners to a double-digit lift in styling and treatment products. 

The hair segment also posted healthy results in the mass market, where it accounts for the largest piece of the mass beauty business.

Jensen added,

“Beauty is in a position to shine this holiday, with one-third of consumers planning to gift beauty products — a meaningful increase from last year. The momentum is especially strong among higher-income households and those with children, Millennials, and Gen Z – who are not only buying for others but also indulging in self-gifting. These groups are more likely to associate holiday shopping with bringing joy or practicing self-care, signaling a prime opportunity for beauty brands and retailers to craft messaging that celebrates both giving and personal wellness.”

Read Next

Top Fragrances in the World in 2025

Circana Looks at Beauty Market Trends in China