Tariffs and economic uncertainty are reshaping consumer behavior in the beauty industry, shifting the focus from spontaneous trial to more value-driven choices. As price resistance heightens, particularly for premium brands, those that prioritize transparency, sustainability, and clear value will be best positioned to meet evolving expectations.

While the global beauty market continues to grow, success in the near term will hinge on innovative, customizable packaging that reinforces both function and affordability.

Redefining Value and Rebuilding Trust

Consumers are recalibrating what value means, looking beyond low cost toward long-term usability, environmental responsibility, and brand authenticity.

Refillable or recyclable packaging, multi-use formats, and clearly communicated sourcing are gaining traction. Gen Z and Millennials are especially vocal about transparency, with roughly one-third researching ingredient origins and environmental impact before buying beauty products. This highlights a key opportunity for brands to partner with packaging vendors that prioritize both sustainability and performance.

From Experimentation to Proven Performance

New product trial is waning. As of March 2025, only 27% of consumers reported buying a new beauty product they had not tried before in the past three months, reflecting a growing focus on reliability over novelty.

As consumers trim spending and stick to what works, brands must prove their value early and clearly. Packaging and messaging should spotlight functional benefits at a glance to reinforce trust and reduce hesitation.

Masstige’s Moment to Shine

Economic pressure is fueling both trading down and selective splurging. Many consumers are turning to affordable alternatives, with nearly 70% of makeup users in the U.S. reporting they have purchased a dupe.

Among premium beauty buyers in the UK, 42% say they have opted for a lower-cost version of a favorite product in the past year, and close to 40% of U.S. skincare users would look for cheaper options if they needed to cut back.

At the same time, some shoppers continue to invest in products that offer long-term benefits or emotional rewards. This dual behavior creates an opportunity for masstige brands to stand out by delivering premium experiences at accessible prices.

Packaging plays a key role here, combining upscale design with cost-efficient materials to signal value without raising spend.

Legacy and Transparency Matter

In uncertain times, familiarity holds power. Consumers are gravitating toward heritage and legacy brands they recognize and trust. However, trust is not automatic. Transparent communication, especially around pricing, ingredients, or sustainability commitments, is critical. Silence or vague messaging risks loyalty.

Brands that communicate clearly and consistently, both on the shelf and on the pack, are better positioned to hold their ground.

What Comes Next

To remain competitive, beauty brands must deliver clarity, creativity, and value without excess. Packaging is a powerful tool to reinforce these priorities.

As U.S.-based companies contend with tariffs and inflation, European beauty brands may be better positioned thanks to more stable supply chains and long-standing regulatory frameworks. Their early investments in circular packaging and regional sourcing could give them an edge in a market increasingly driven by conscious consumption.

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ABOUT THE AUTHOR

Gabriela Elani is Senior Director, Mintel Consulting.