CHICAGO – NielsenIQ’s State of Beauty 2026 report showed that the global beauty market grew 10% year-on-year, with e-commerce expanding six times faster than in-store sales. The findings highlight a rapid shift to digital-first, AI-influenced commerce across key global markets.
As consumer expectations evolve toward convenience, personalization, and seamless digital experiences, beauty brands are under pressure to adapt. From AI-powered product discovery to social commerce and livestream shopping, the path to purchase is becoming more dynamic—requiring brands to move faster and engage consumers across an increasingly complex ecosystem.
Key findings from the State of Beauty 2026 report
• Global beauty sales grew 10% year-over-year, driven by strong digital acceleration.
• E-commerce is growing 6x faster than in-store sales, reshaping channel strategies.
• 49% of consumers are willing to pay more for locally made products, reflecting rising demand for authenticity and trust.
• 52% will pay a premium for convenience, as time-saving solutions drive purchase decisions.
• 63% of consumers prioritize mental wellness, signaling continued expansion of holistic beauty.
“Beauty is entering a new phase of growth defined by both resilience and rising complexity,” said Tara James Taylor, senior vice president, Beauty Vertical, NIQ via press release. “Consumers are more intentional in how they spend, seeking products that deliver real value, simplicity, and wellbeing. At the same time, AI and digital commerce is transforming how consumers discover and evaluate products, shifting advantage to brands that show up clearly and consistently across digital ecosystems.”
Digital behaviors are accelerating this transformation. More than half of consumers are now exploring AI-enabled shopping tools, with 49% already receiving beauty recommendations from generative AI. Social commerce continues to gain momentum, with 53% of consumers purchasing through social platforms and 22% buying directly via TikTok Shop. In China, Livestreaming accounts for 70% of beauty sales on platforms like Douyin, underscoring the growing importance of content-driven commerce.
These shifts are redefining how products are discovered, validated, and purchased, turning online engagement into immediate conversion and driving sustained category growth. As AI, social commerce, and digital ecosystems reshape the consumer journey, brands that invest in intuitive, transparent, and data-driven experiences will be best positioned to build trust and capture growth in the next era of beauty.