Written by Elle Morris, Principal, Elle Morris Consulting

2025 is marking a significant shift in the beauty market with mass beauty sales outpacing prestige for the first time in three years—with a 3% increase versus flat results for prestige. But despite that headline, prestige remains the long-term growth engine in beauty. 

Consumers are incredibly loyal to prestige brands. That loyalty is anchored in both perceived value and constant innovation—particularly among consumers who can afford to trade up. Prestige brands have built strong emotional connections by delivering distinct, high-value experiences.

From the packaging and dispensing system, to how the product applies, to unique or innovative ingredients—every detail feels premium. The marketing is aspirational, projecting a lifestyle that the beauty consumer wants to be a part of. 

Formulations are also key. The adage “you get what you pay for” still resonates strongly in the prestige channel. Prestige brands invest heavily in research and efficacy, and consumers are willing to pay more for products that deliver these attributes. This consumer behavior creates healthy margins and steady growth.

Analysts project that prestige beauty will grow by 5% during the balance of 2025 alone. Looking longer term, McKinsey forecasts that the luxury beauty category will grow approximately 10% through 2028.

Trading Up—and Mixing Tiers—Is the New Normal

Today’s beauty consumers aren’t just loyal—they’re strategic. Increasingly, we’re seeing consumers trade up or mix and match across price tiers. We saw this in fashion years ago: celebrities pair a Chanel jacket with a t-shirt from Target, and that same pattern is now showing up in beauty.

Masstige brands are growing rapidly as they give consumers permission to experiment upward without abandoning their budget. These “premium but attainable” offerings allow for accessible indulgence and serve as a gateway to prestige purchases.

Innovation Keeps Prestige Ahead

If there’s one thing that consistently separates prestige from mass, it’s innovation. Prestige brands lead the charge on ingredient breakthroughs—from CBD and biotech actives to liposomal delivery systems and cutting-edge anti-aging technologies.

Prestige brands also have the R&D budgets to back it up. These brands don’t just follow trends; they set them. By investing in early-stage formulation science, prestige players are often first to market with meaningful solutions for skin, scalp, and hair. Mass brands, by contrast, tend to play catch-up. They monitor what’s resonating in prestige and try to replicate it at scale. But prestige maintains the edge when it comes to scientific credibility and authoritative efficacy.

Omnichannel Distribution Pays Off

Prestige brands have embraced omnichannel strategies—ensuring a strong presence in both physical retail and digital ecosystems. They’ve reimagined the in-store experience to be more immersive and elevated, turning stores into environments that encourage trial and exploration. Social media platforms like TikTok Shop are now crucial channels for both prestige and mass brands, especially when it comes to reaching Gen Z. 

Mass Beauty Gains Through Price and Accessibility

In Q1 2025, mass beauty growth wasn’t driven by volume—it was driven by price. Unit sales were flat or slightly down, but dollar sales increased because of price hikes. It’s a reminder: mass beauty isn’t selling more, just charging more.

Consumers continue to crave value. They rely on mass products for their daily routines, then turn to prestige brands for more unique needs—whether that’s advanced skincare, seasonal fragrance, or the occasional splurge.

The Future Market Landscape

Looking ahead, prestige beauty will continue to lead where emotional connection and sensory experience matter most—particularly in categories like fragrance and skincare.

Mass beauty will maintain category breadth, driven by accessibility and convenience. And masstige will continue to grow as a middle-market bridge—offering elevated quality without the full prestige price tag.

By 2030, the total beauty category is expected to grow by approximately 5% annually. But legacy prestige brands won’t be able to coast on their name alone. Continued investment in innovation, speed to market, and consumer relevance will be key to maintaining market share.

Strategic Implications

A few strategic signals are clear:

Tiered Portfolio Management

The future isn’t prestige or mass. It’s both—and masstige, too. Consumers are shopping across price points based on their needs. Successful brands will embrace this fluidity and design portfolios accordingly.

Data-Driven Personalization

AI and digital tools are reshaping beauty diagnostics, targeting, and product recommendations. Prestige brands, with deeper budgets, are in a strong position to leverage these technologies to deliver customized solutions faster.

Digital + Physical Fusion

We’re entering the era of the “phygital” consumer journey. Discovery happens online—often on social platforms—but the path to conversion is increasingly hybrid. Expect elevated in-store experiences at retailers like Ulta, Sephora, and Blue Mercury to complement digital engagement.

Sustainability & Authenticity

Gen Z is demanding brands to be cleaner, more ethical, and radically transparent. This will only intensify. Expect prestige brands to evolve their messaging, sourcing, and formulation practices to stay relevant in a values-driven market.

While mass beauty may have outpaced prestige briefly in early 2025, it’s clear the long-term momentum remains with prestige. The future of beauty will be tiered, personalized, and digitally native. Brands that successfully blend emotional resonance with data, science, and platform fluency will be the ones leading the category into its next evolution.

“By investing in early-stage formulation science, prestige players are often first to market with meaningful solutions for skin, scalp, and hair. Mass brands, by contrast, tend to play catch-up.”

ABOUT THE AUTHOR

Ms. Elenita (Elle) Morris is a recognized consumer packaged goods brand design thought-leader with particular expertise in beauty, haircare, and skincare. She is a frequent contributor to Beauty Packaging Magazine.