Circana research reported US prestige beauty industry sales revenue remained flat in the first quarter of 2025, compared to the same period in 2024. For the first time in several years, the mass channel has outpaced prestige, posting a year-over-year dollar increase of 3%. Price increases contributed to the stronger performance in the mass market, as unit sales were down 1%.

“The beauty industry will continue to stabilize following its tremendous growth streak in prestige, even as some categories, such as fragrance, will continue to surge,” said Larissa Jensen, Global Beauty Industry Advisor at Circana. “The macro landscape of 2025 presents a complex mix of factors that will shape industry dynamics. When navigating through what we can’t control, we as an industry must prepare where we can—through strategies that include creating brand value beyond price and focusing on compelling value propositions and high-margin innovations to appeal to consumers.”

Overall softness for prestige beauty in Q1 was driven primarily by consumer pullback in January, which improved in February and in March, when in-store sales experienced a lift. All beauty categories experienced prestige market growth in March.

Fragrance: Continues to hold its place as the top performer.

• Q1 dollar sales rose 4% in the prestige channel and 8% in the mass market.
• In prestige outlets, gift sets outperformed thanks to mini and travel size sets, with an increase of 45%.
• High concentrations, including eau de parfums and parfums, continued to drive the greatest impact on growth.

Makeup: Based on sales volume, it maintained its position as the largest prestige beauty category.

• Prestige makeup experienced a slight decline of 1% based on dollars.
• Though the face and eye segments were challenged, stick formats have been a bright spot with stick eye shadow and stick foundation growing double digits, outperforming their counterparts that come in more traditional forms.
• Overall lip makeup sales remained flat; however, lip liner and other lip makeup, including lip oils and lip balms, grew.

Skincare: The most challenged beauty category in prestige retail.

• Experienced a decline of 3% in dollars, but units sold grew by 1% in the prestige channel.
• In mass, the category posted growth in terms of both dollars and units.
• Skincare’s prestige performance was driven by declines in facial skincare, notably key areas such as face serum, face exfoliator, and lip treatment.
• Conversely, body and suncare segments continued to grow. Body sprays, serums, deodorants, and hand soaps all grew by double digits, and suncare-related products, from sunscreen to self-tanners, grew.

Hair: The category emerged as one of the strongest within prestige beauty.

• It grew by 4% in dollars in Q1 and experienced single-digit growth in the mass market.
• In prestige, styling products were the top driver, increasing by 12%.
• Emphasizing the importance of hair wellness, scalp care products continued to grow in sales, as did those addressing hair thinning, hair loss, and heat protection.