In 2025, the landscape of fashion and beauty appears to be a blend of growth and challenges, particularly highlighted by Circana’s insights presented at the WWD Global Fashion & Beauty Summit. While beauty has shown remarkable resilience, other areas within fashion struggle to keep pace. Larissa Jensen, a senior vice president at Circana, pointed out that the beauty sector has enjoyed a consistent upswing over the past four years, which is quite unprecedented in the industry. This growth varies across regions, with North America and Europe experiencing a stronger inclination towards prestige beauty products, while South America continues to see a dominance of mass-market offerings.
The figures indicate that in North America, prestige beauty has risen by 7%, though this marks a slowdown compared to the previous year. Contrastingly, South America witnesses more dramatic fluctuations, with countries like Argentina reporting triple-digit growth, largely influenced by inflation rates. This disparity underscores regional differences in consumer behaviors and economic conditions. While beauty is thriving, it’s noteworthy that consumer interest is increasingly intertwining with overall well-being — a trend that is now prevalent across various beauty categories including skincare and fragrance.
Well-being has emerged as a universal theme for consumers globally. As Jensen noted, high levels of stress have catalyzed the concept of the “joy economy,” where beauty plays a pivotal role alongside other industries. This newfound perspective sees 78% of U.S. consumers actively engaging in self-care, with significant attention granted to social and mental well-being. Skincare routines have morphed into broader wellness practices, indicating a shift in how consumers view beauty — not merely as a cosmetic endeavor but as an integral part of their overall health and happiness.
A closer look reveals the diversification of beauty products. For instance, in Europe, sun care has become a robust market, with 65% of consumers seeking sun protection, while self-tanning products are gaining traction in Latin America. Meanwhile, the Chinese market is witnessing a shift, with dermatological brands in anti-aging care outpacing traditional prestige products. Fragrance is experiencing a global renaissance, with innovations like alcohol-free formats emerging to meet evolving consumer preferences, showcasing the industry’s ability to adapt and thrive.
In makeup, traditional products like lip color and foundation are facing stagnation in growth, while alternatives such as tinted moisturizers and lip balms are driving interest. This shift emphasizes a transition towards products that prioritize comfort and versatility over mere aesthetics. Interestingly, 75% of women express a preference for feeling good over looking good, which is a crucial insight for the beauty industry moving forward. This sentiment reflects a broader trend toward wellness, suggesting that beauty brands should align products with the improving mental and emotional well-being of consumers.
While beauty is on an upward trajectory, fashion, on the other hand, is experiencing a modest decline, with a reported drop of 2% across the board. This downturn, particularly in apparel, can be attributed to consumer sentiment influenced by economic factors. Many consumers anticipate that tariffs could impact spending, particularly in fashion, leading to more cautious purchasing behavior. In this evolving landscape, the beauty industry stands as a beacon of resilience, buoyed by a focus on well-being, while fashion must navigate economic pressures and shifting consumer demands to adapt successfully.