As 2025 drew to a close, the U.S. beauty industry continued to defy expectations, delivering growth across both mass and prestige channels despite broader economic pressures. Beauty remains one of the few discretionary categories where consumers are willing to spend, reinforcing its resilience and emotional relevance.

Mass Market Momentum

Mass beauty has continued to either outpace or keep pace with prestige beauty throughout the past year. Personal cleansing, skincare, and fragrance led the charge, with deodorants, facial moisturizers, serums, and hand and body lotions driving performance. Women’s fragrance stood out as a key growth contributor in the market, buoyed by the rising “dupe” trend that offers luxe-inspired scents at accessible price points. E-commerce amplified mass beauty’s momentum, delivering double-digit gains and signaling the importance of digital strategies for future success.

Prestige Beauty Resilience

Prestige beauty is set to deliver another year of positive dollar and unit growth, a clear indicator of sustained consumer engagement in the more premium side of the market. Fragrance and hair were the biggest dollar drivers, underscoring the appeal of emotional and experiential products. Skincare posted the strongest unit growth despite muted dollar performance, reflecting price sensitivity and the influence of masstige brands. Segment-level trends reveal convergence between prestige and mass, with body creams, facial serums, deodorants, and lip products outperforming category benchmarks.

Fragrance: The Standout Category

Fragrance continues to shine as the fastest-growing segment across both the prestige and mass markets. Anchored in storytelling, self-expression, and emotional connection, fragrance has proven to be remarkably resilient. Consumers view it as an accessible luxury and meaningful indulgence, reinforcing its appeal. Posting strong gains in prestige and leading growth in mass, fragrance enters 2026 with unmatched momentum and a continued role as beauty’s most dynamic category.

Makeup: A Category in Transition

Makeup remains a tale of two markets. Mass softness persists, with dollar gains offset by unit declines, while lip products shine through tinted balms and oils blending color with care. Prestige makeup, though slowing, finds strength in hybrid products with skincare benefits, reflecting demand for wellness-driven beauty and signaling opportunity in products that deliver more than color.

Skincare: Masstige Pressure and Premium Promise

Skincare continues to bridge mass and prestige, with masstige brands exerting pressure on both ends of the spectrum. Consumers seek value-priced prestige and super-premium mass products for efficacy without compromise. Facial serums and moisturizers remain core drivers, while body care gains traction as self-care expands. Despite price sensitivity, prestige unit growth underscores skincare’s relevance as wellness and preventative routines stay top of mind.

Hair: Wellness at the Forefront

Hair care is shifting toward wellness, with prestige gains driven by treatments for thinning, scalp health, and restoration. Styling products and masks add momentum as consumers seek professional-grade solutions at home. Mass remains dominant in volume, but cross-shopping is high, with trade-ups for tangible benefits. Digital engagement and influencer education amplify this trend, making hair a category to watch in 2026.

Looking Ahead: A Bright Outlook for Beauty

The beauty industry is entering 2026 on a high note, with momentum building across mass and prestige retail channels. Innovation, digital access, and strong emotional relevance remain critical drivers as we head into the next year. With consumers continuing to prioritize beauty as a form of self-care and expression, the outlook for the category is positive, setting the stage for continued growth in the year ahead.

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