US Luxury Beauty Consumer: 2025
"Brands must balance attainability with exclusive, credible benefits to encourage consumer investment and foster affinity with aspirants."
Joan Li, Senior Analyst, Beauty and Personal Care
US Luxury Beauty Consumer Trends
- Nearly half of US consumers have made a luxury beauty purchase in the past two years and an additional 18% aspire to make such purchases in the future. Among those who have made a luxury purchase are a quarter of consumers who report financial challenges, proving the allure luxury beauty brands have for diverse audiences.
- Pessimistic financial outlooks are expected to heighten competition for limited luxury spending occasions. Most luxury beauty consumers shop across price points: 75% agree that quality beauty doesn’t have to be expensive.
- Uniqueness and emotional affinity are the core value propositions of luxury beauty brands. These two pillars are increasingly supported by evidence-driven communication, expert validation and a balance of inspirational and convenient retail experiences.
- Over the next few years, strategies toward attainability, such as promotions and trial-sized products, can encourage trial and build affinity with new consumers during harder times.
- In the long term, luxury skin and fragrance will transform additional categories, creating luxury treatments and experiences for the total body.
This Report Looks at the Following Areas:
- The impact of the macroeconomic and cultural factors on luxury beauty consumption and the luxury beauty market
- Product and marketing trends in luxury beauty
- Psychographic and financial segmentation of luxury beauty consumers
- Luxury beauty purchases and spending priorities by category
- Indicators and expectations for luxury beauty products
- Retail channels for luxury beauty
- Attitudes and behaviors toward luxury beauty products and select luxury beauty trends
Report Scope
This Report examines the attitudes of consumers who have either purchased a luxury beauty product in the past two years, or, if they haven’t purchased such a product, report wanting to make a purchase in the future. The luxury beauty market is thus composed of both current and aspirational shoppers.
Survey respondents were primed with the following examples of luxury brands within each category:
- facial skincare (eg moisturizer, cleanser): Augustinus Bader, La Mer
- makeup (eg lipstick, foundation): Chanel, Estée Lauder
- haircare (eg shampoo, conditioner): Kératase, Olaplex
- fragrances: Byredo, Dior
- bodycare (eg body lotion, hand lotion): Augustinus Bader, L’Occitane
- soap, bath or shower product (eg bodywash, handsoap): L’Occitane, Aesop
- oral care (eg smart toothbrush, teeth-whitening product): Twice, Moon Oral Care
- beauty supplements: Nutrafol, The Nue Co.
- beauty tools and/or accessories (eg hair clips, makeup brushes): Crown Afair, Westman Atelier
- beauty devices (eg LED masks, hair styler): Dyson, Solawave
- nail polish and/or care: Hermès, Gucci
Respondents were then asked to limit their consideration of each question to brands with price points similar to the examples above, to the best of their ability.
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EXECUTIVE SUMMARY
- What you need to know
- Market predictions
- What consumers want and why
- Tablestakes + opportunities
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MARKET DYNAMICS
- Market definition
- Market context
- Consumer sentiment fell for the fifth consecutive month – sitting at its lowest level since July 2022
- Graph 1: consumer sentiment index, 2022-25
- Most HHIs see an uptick in consumers who feel financially worse off
- Graph 2: consumers financially worse off over the past 12 months, by household income, 2024-25
- Continued financial pessimism in the coming months will dampen discretionary spend
- Graph 3: outlook on financial situation over the next 12 months, 2023-25
- Market factors
- Luxury has draw across all HHIs and financial situations
- Graph 4: luxury beauty purchase in the past two years and purchase intent by financial situation, 2025
- Luxury has draw across all HHIs and financial situations
- Graph 5: luxury beauty purchases in the past two years and purchase intent by HHI, 2025
- Millennials have the strongest purchasing power and Gen Z the strongest aspirations
- Graph 6: luxury beauty purchases in the past two years and purchase intent by generation, 2025
- Be mindful of discretionary spending priorities
- Graph 7: discretionary spending priorities in the past 12 months (any rank 1-3)*, Millennials vs all adults, 2024
- Professional treatments and med spas compete with at-home products for luxury dollars
- Graph 8: behaviors and attitudes toward beauty treatments, 2023-25
- Financial pessimism demands vigilance toward protecting brand quality and value
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INNOVATION AND MARKETING STRATEGIES
- Launch activity and innovation
- Launch activity reflects consumers’ core luxury categories of interest
- Graph 9: category launches by beauty price positioning, 2024
- Category spotlight: luxury haircare benefits from skincare and fragrance concepts
- Category spotlight: luxury oral care can capture new audiences
- Category spotlight: beauty tools and devices are next-step investments for luxury wellness and treatment rituals
- Marketing and claims
- Luxury launches overindex in botanical, fast-performing and long-lasting claims
- Graph 10: top claims by beauty price positioning, 2024
- Tablestakes: expert-driven, evidence-based communication
- Graph 11: % change in dermatological and clinical claims by beauty price positioning, 2020-24
- Next-level anti-aging innovation remains lucrative, but competitive
- Graph 12: perceptions of select emergent BPC ingredients, 2024
- Showcase eco-luxury concepts to supercharge functionality and uniqueness
- Sustainability spotlight: L’Oréal normalizes luxury refills
- Create attainable luxury opportunities to drive broader reach
- Work alongside in-office visits
- Reimagine exclusive retail experiences for consumer values and personal attention
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AUDIENCE SEGMENTATION
- Psychographics: luxury consumers in the general population
- Using segmentation to identify luxury consumer psychographics
- Four psychographic audiences reflect distinct attitudes and motivations toward luxury beauty
- Graph 13: [no title]
- Using cluster analysis to identify luxury beauty psychographics
- Graph 14: attitudes and behaviors toward luxury and regular beauty products, 2025
- Using cluster analysis to identify luxury beauty psychographics
- Graph 15: component alignment, by consumer segments, 2025
- Most luxury beauty shoppers are Balanced Enthusiasts
- Balanced Enthusiasts find ways to make their luxury aspirations attainable
- Graph 16: select attitudes toward luxury and regular beauty brands by segment, any agree, 2025
- Prestige Purists almost exclusively prefer luxury beauty
- Prestige Purists are true believers in luxury’s exclusivity and benefits
- Graph 17: select attitudes toward luxury and regular beauty brands by segment, any agree, 2025
- Pragmatic Skeptics approach luxury with hyper-selectivity
- Pragmatic Skeptics must be convinced a luxury product cannot be duped
- Graph 18: select attitudes toward luxury and regular beauty brands by segment, any agree, 2025
- Beauty Bystanders use luxury name brands as shortcuts to quality
- Beauty Bystanders are largely disengaged from beauty trends
- Graph 19: select attitudes toward luxury and regular beauty brands by segment, any agree, 2025
- Augment: affluent and high-net-worth consumers
- Using the augment to identify unique opportunities among HNW consumers
- Affluent and HNW consumers are less likely to be engaged in luxury beauty
- Graph 20: select attitudes toward luxury and regular beauty brands, main vs augment, any agree, 2025
- Graph 21: luxury beauty purchase in the past two years and purchase intent, main vs augment, 2025
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CONSUMER INSIGHTS
- Consumer fast facts
- Luxury beauty purchases
- Fine fragrances are the most popular of luxury beauty categories
- Graph 22: Luxury beauty purchases in the past 2 years, main vs augment, 2025
- Most luxury beauty consumers have purchased between 3-6 types of luxury products in the past two years
- Graph 23: types of luxury beauty products purchased, 2025
- Attainable luxury drives exploration of additional luxury categories
- Graph 24: repertoire of luxury beauty products purchased in the past two years, by age and HHI, 2025
- Purchases by psychographic: be mindful of differences in luxury interests
- Graph 25: luxury beauty purchases in the past two years by psychographic, 2025
- Don’t discount men from luxury beauty strategies
- Graph 26: luxury beauty purchases in the past two years, by generation and gender, 2025
- Luxury spending priorities
- Fine fragrances capture the greatest spend among luxury categories
- Graph 27: luxury beauty spending priorities, ranked, 2025
- Priorities by psychographic: Balanced Enthusiasts drive investments in expanded categories
- Graph 28: luxury beauty spending priorities by psychographic, any rank, 2025
- Luxury makeup retains strong appeal to all generations of female luxury shoppers
- Graph 29: luxury beauty spending priorities among women by generation, any rank, 2025
- Fine fragrance is the staple of the men’s luxury grooming market
- Graph 30: luxury beauty spending priorities among men by generation, any rank, 2025
- Aspirants of luxury beauty reflect different category priorities, informing future opportunities
- Graph 31: luxury priorities, any rank, spend vs aspiration, 2025
- Indicators of luxury beauty
- Brand name and exclusivity underlie perceptions of luxury
- Graph 32: luxury beauty indicators, main vs augment, 2025
- Indicators by psychographics: Prestige Purists place a premium on one-of-a-kind claims
- Graph 33: select luxury indicators by psychographic, 2025
- Indicators by psychographics: Pragmatic Skeptics require scientific and expert endorsement
- Graph 34: select luxury indicators by psychographic, 2025
- Indicators by psychographics: Balanced Enthusiasts can be swayed by high-profile endorsements
- Graph 35: select luxury indicators by psychographic, 2025
- Tailor credibility to gendered sources of trust and influence
- Graph 36: luxury beauty indicators by gender, 2025
- Younger women’s luxury perceptions are shaped by emotion – demands for scientific claims and exclusivity come with age
- Graph 37: luxury beauty indicators among women by generation, 2025
- Retail channels for luxury beauty
- Amazon is a leading retailer, but conventional beauty channels remain key to shopping experiences
- Graph 38: Retail channels for luxury beauty, any product, 2025
- Be mindful of channel preferences by product type
- Graph 39: retail channels for luxury beauty by product type, 2025
- Retail channels by psychographic: most luxury shoppers are retail omnivores
- Graph 40: retail channels for luxury beauty, any product, by psychographic, 2025
- Retail channels by psychographic: Prestige Purists rely on curation from their preferred retailers
- Graph 41: retail channels for luxury beauty, any product, by psychographic, 2025
- Looking ahead: omnivorous luxury shopping may lead toward social and live channels
- Graph 42: social commerce participation motivators by generation, 2025
- Professional settings lend the credibility and exclusivity that many shoppers seek
- Graph 43: luxury shopping at professional settings, by category, 2025
- Attitudes and behaviors toward luxury beauty shopping
- Gen Z and Millennial men hold potential for future purchasing power
- Graph 44: aspirations to purchase more luxury beauty by generation and gender, 2025
- Pragmatic Skeptics seek luxury at a discount
- Graph 45: discount luxury shopping, any agree, by select groups, 2025
- Quality is a concern for Balanced Enthusiasts
- Graph 46: attitudes toward quality of luxury beauty products by psychographic, 2025
- Brand loyalty is generally low, but particularly so among women Gen X and older
- Graph 47: luxury beauty brand loyalty by generation and gender, 2025
- Perceptions of select luxury beauty trends
- Anti-aging and sustainability are promising avenues for innovation
- Graph 48: interest in select luxury beauty trends by select groups, 2025
- Biotech claims must ladder up to a function and purpose to justify a premium
- Graph 49: interest in biotech-related claims by psychographic, 2025
- Some shoppers are making a mental trade-off between in-office luxuries vs at-home luxuries
- Graph 50: interest in professional beauty treatments by group, 2025
- Minority luxury shoppers place a premium on strong heritage narratives
- Graph 51: interest in luxury heritage narratives by ethnicity or race, 2025
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APPENDIX
- Consumer research questions
- Consumer research methodology
- Bases: luxury beauty categories
- Generations
- Abbreviations and terms
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