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Dive Brief:
Riding momentum from a strong first quarter, mass market beauty sales growth outpaced prestige beauty in the first half of 2025, according to a report from Circana.
Mass market sales for the first six months of the year increased 4% to $34.6 billion, while prestige grew by 2% to $16 billion.
The contrast was more pronounced in certain categories: In fragrance, mass market beauty sales increased 17% based on dollar sales — the channel’s fastest-growing segment — compared to a 6% increase in prestige beauty.
Dive Insight:
The growth in mass beauty sales in the first half of the year builds on trends seen in the first quarter where it outpaced prestige.
“The beauty industry’s latest results are indicative of a consumer who is focused on efficacy and elevated value,” Circana beauty industry adviser Larissa Jensen said in a statement.
“Only 14% of U.S. beauty buyers believe that higher prices indicate a better-quality product. The mass and prestige markets are converging, with premium-priced brands in mass retail and value-priced prestige brands outperforming their counterparts,” Jensen said. “As the industry faces tariff uncertainties and shifting consumer sentiment, adaptability and strategic agility are essential for success in 2025.”
Mass merchants have been ramping up their beauty offerings in recent years. Walmart expanded its premium beauty offerings in 2024, adding more than 60 new brands to the category. Target, which has been growing its own beauty assortment over the years, announced earlier this month that it was ending its five-year partnership with Ulta.
“Ulta and Target failed for several reasons,” Neil Saunders, GlobalData Managing Director, said in emailed comments. “The main one is that Target did not provide a premium experience while charging premium prices. Many shoppers just concluded they were better off going directly to Ulta.”