A colossal market entering a new chapter
But the rules of the game are changing. Growth, though solid, is marking time: according to Circana, prestige sales grew by +4% in 2025 to $36 billion, while the mass market gained +5% to $72.7 billion. These are still flattering figures, but they point to a slowing trajectory after the boom years of the post-Covid era. By 2027, growth in prestige is projected to be down to +3% a year.
But that’s not where the real break lies. It lies with consumers, whose expectations, behaviors and choices have been profoundly reshaped. This is revealed by the first edition of the Prestige Beauty Consumer Index published by Kearney, which surveyed 1,000 American beauty consumers and drew some major strategic conclusions.
Five consumer profiles to decode a fragmented market
One of the most valuable contributions of the Kearney study is to have put an end to the illusion of a homogeneous beauty consumer. Based on an analysis of purchasing behavior and motivations, five distinct personas were identified:
Minimalist Savers are pragmatic, efficiency-driven and highly price-sensitive. Routine Enthusiasts are rooted in habit and proven performance. Balanced Beautifiers seek accessible sophistication and are willing to spend more if the innovation is credible. Premium Purists are high-value buyers who demand clinical-level science and experience beauty as a wellness ritual. Finally, Confident Trend-Seekers are explorers attracted by novelty and emerging technologies.
These five profiles do not overlap with traditional socio-demographic categories. They reflect different value systems when it comes to beauty – and each calls for a distinct brand proposition.
Loyalty is dead, long live proof
This is perhaps the most unsettling signal for the major beauty brands: brand loyalty, long nurtured by heritage and storytelling, has collapsed. Nearly half of respondents now place effectiveness and value for money at the top of their purchasing criteria. Less than a quarter still attach importance to brand awareness or history.
Even more revealing: over 56% of consumers say they have tried “dupes” – those cheaper alternatives they consider equivalent to premium products. Smart shopping has become mainstream and uninhibited. As Kearney sums up, “loyalty isn’t going away, but it must be regained at the SKU level, defended through value and regularly renewed through innovation.”
Charles-Etienne Bost, Partner at Kearney and specialist in the beauty sector, puts it this way: “More than ever, beauty has become a competition for consumer acquisition. And once attention has been captured, effectiveness must anchor the promise, with science and technology as the new guarantors of credibility.”
Scientific efficiency: the new prestige
Performance is no longer a differentiator – it’s a prerequisite. 85% of respondents rank quality and efficacy ahead of price, customer reviews or brand heritage. Yet a third of them say they are dissatisfied in categories as important as skincare or hair care. The gap between promises and perceived reality remains a costly blind spot for the sector.
The new definition of prestige? No longer luxury or myth, but proof. Over 80% of consumers say that scientific validation influences their purchasing decisions. 39% are specifically interested in skincare products derived from clinical research, and 35% in biotechnological formulations.
This rationalization of the beauty consumer surprises the industry players themselves. “We expected emotional loyalty to carry more weight, but effectiveness and price have far outstripped brand heritage,” notes Ana Perim, author of the report at Kearney. Brands that can combine scientific credibility with emotional connection – delivering visible, meaningful results – will define the next era of prestige.
The operational consequences are tangible: R&D budgets refocused on ingredients and formulations with demonstrable results, systematic use of clinical and consumer tests to validate claims, and an increase in partnerships with dermatologists as a lever of trust.
Beauty as a pillar of well-being and identity
Beauty is reinventing itself in its deepest vocation. It is no longer merely aesthetic: it is becoming a vector for health, balance and self-affirmation. For Minimalist Savers and Routine Enthusiasts, beauty is first and foremost functional well-being – products that discreetly support health and appearance. For Premium Purists and Trend-Seekers, it extends to a daily ritual with mental as well as physical benefits.
Generation Z takes this logic even further: more than half of respondents in this age group say they use beauty as a tool for self-expression and community connection. This is not a call to create “brands of creativity”, however, says Kearney: it’s an invitation to reinterpret self-expression through each brand’s own prism.
This convergence of beauty, health and identity creates three now inseparable dimensions: appearance, well-being and self-expression. Brands that speak to only one of these leave value on the table.
The channel war: Amazon has reshuffled the cards
The other major breakthrough in recent years has been in distribution. Amazon has established itself as the channel of reference at every stage of the purchasing journey – discovery, research, purchase, replenishment. A position that has been further consolidated: Morgan Stanley now ranks Amazon first in beauty retailing in the United States, ahead of Walmart.
Consumers now judge each channel according to four criteria: quality of selection (curation), practicality (convenience), community dimension, and quality of overall experience. Amazon dominates on convenience and community. Sephora and Ulta remain leaders in curation and service. Own-brand sites, meanwhile, are going through an identity crisis.
The lesson is clear: no channel can survive on a single advantage. Each touchpoint must now compete on all four dimensions. In response, players like Sephora and Ulta are multiplying additional services – click-and-collect, same-day delivery, in-store experiences – to rebuild sustainable differentiation.
Signals to watch out for in the coming seasons
To sum up, there are a number of dynamics that need to be integrated into the strategic thinking of players in the sector – and their partners:
Mass/prestige convergence accelerates. Mass premium brands and affordable prestige brands are outperforming their respective segments. Traditional price boundaries no longer structure purchasing decisions: only 14% of American consumers believe that a higher price is a sign of better quality.
Fragrance confirms its status as a locomotive category. With growth of +12% in prestige in 2024, then +6% in 2025, perfume is driving the market in both channels, perfectly illustrating the quest for accessible pleasure even in times of budgetary pressure.
Scalp care and hair wellness are entering an acceleration phase. With +19% growth for scalp care in the first half of 2025 and increasing integration into wellness rituals, the premium hair care category is undergoing a structural revival.
AI and biotech are moving up the value chain. Personalized formulas, digital diagnostics, augmented recommendations: technologies are transforming both product and service. They are not yet mainstream, but high-value consumers are sensitive to them, and are making them a credibility criterion in their own right.
In conclusion
The American beauty market remains one of the most dynamic and innovative in the world. But it is entering a more demanding phase of maturity, where growth will no longer be the result of moving upmarket or channel expansion alone. It will come from the ability of brands to deliver proof, to embody well-being in all its dimensions, and to be present in a consistent and experiential way at every touchpoint.
The American consumer of 2026 is pragmatic and indulgent, skeptical and open, loyal… but only if they earn that loyalty with every interaction. For brands and retailers, the message is unambiguous: in such intense competition, it’s the quality of execution – product, proof, channel, experience – that makes the difference.
Sources: Kearney Prestige Beauty Consumer Index (2025), Circana US Beauty Market Reports (2024-2025), Premium Beauty News, BeautyMatter, Cosmetics Design.
