4 Shifts in the Way Consumers Shop for Beauty
When it comes to shopping for beauty, consumers are looking for an experience that’s more than skin deep. Consumer purchasing decisions are driven by interactive technology, cultural values and generational buying preferences.
The resulting consumer behavior shifts reflect a demand for products from companies embracing sustainable and ethical practices, personalized beauty solutions, and digital engagement from social media and influencers.
While buying preferences will vary, these are four key trends shaping consumer demand:
1. Purpose-Driven Purchasing
According to a report by McKinsey & Company published in 2023, 60% of Gen Z and Millennial consumers say a brand’s environmental and social values influence their beauty purchases. Consumers are seeking transparency, ethical sourcing and clean formulations.
2. Tech-Enabled Personalization
With the rise of artificial intelligence (AI) and skin diagnostic tools, McKinsey reports 70% of respondents expect personalization when they shop. Beauty technology, such as virtual try-ons and diagnostic apps, is reshaping shopping and beauty routines.
3. Digital-First Discovery
Social media remains a powerful driver of beauty purchases. Platforms like TikTok and Instagram have become critical touchpoints, especially for younger generations exploring trends and product recommendations.
4. Skincare First, Makeup Second
Skincare sales continue to outpace makeup, particularly among Gen Z, with hybrid products like tinted serums becoming a go-to choice. This aligns with a broader shift toward health and wellness in beauty.
How Tech is Shifting the Beauty Landscape
AI, virtual reality (VR) and augmented reality (AR) are at the forefront of the beauty industry’s digital transformation.
VR, for example, enhances the shopping experience by allowing consumers to virtually try on makeup and hairstyles, bridging the gap between online and in-store shopping. The technology not only improves customer engagement but also reduces product returns due to more tailored recommendations. AI-powered tools, meanwhile, can assess skin conditions, suggest customized routines and make beauty more precise and data-driven, potentially leading to enhanced consumer satisfaction.
As consumer demand for personalized, tech-driven experiences grows, brands that embrace these innovations are seeing measurable success in engagement, loyalty and conversion. Personalization ranks among the top priorities for consumers.
Here’s a look at two brands successfully utilizing these innovations:
Sephora’s Virtual Try On
About a decade ago, Sephora rolled out a virtual try-on feature that uses AI to allow shoppers to shade match for lipstick and foundation. Consumers reported a 90% accuracy rate in shade matching recommendations.
Benefit Cosmetics
AR technology was introduced, which transformed the way customers engage and select their ideal eyebrow shape. This resulted in enhanced customer engagement with a 101% increase in time spent on Benefit’s website and a 20% increase in add-to-cart purchases.
Brands Reset Amid Weary Consumers
In 2023, the total amount of beauty products sold around the world grew just 2%, and in the U.S. volume growth was only 1% as inflation-weary consumers prioritized value — trading down to smaller quantities or more affordable brands.
While inflation is now cooling in major markets, brands have a chance to reset. Future growth will depend on developing sustainable strategies that balance pricing, accessibility and innovation.
The bottom line: Beauty brands that will thrive in today’s economy are those that embrace AI-powered personalization, experiential retail and influencer collaborations to enhance customer experiences. These advancements reflect broader cultural and technological shifts — making beauty more diverse, accessible and consumer-driven than ever before.
This is part of a series of articles on beauty industry trends highlighted in Beltre’s report, “The Business of Beauty.”
