AI and e-commerce will reshape consumer purchasing, driving global beauty market growth by 10%

As digital-first, AI-influenced commerce accelerates globally, online sales are more than six times that of physical stores.

Chicago, April 1, 2026–(BUSINESS WIRE)–Nielsen IQ (NYSE:NIQ), the global leader in consumer intelligence, today released its State of Beauty 2026 report, showing the global beauty market grew 10% year-over-year, with e-commerce expanding six times faster than in-store sales. The findings highlight the rapid shift to digital-first, AI-influenced commerce across the world’s major markets.

As consumer expectations evolve toward convenience, personalization, and seamless digital experiences, beauty brands are under increasing pressure to adapt. From AI-powered product discovery to social commerce and livestream shopping, the path to purchase is becoming more dynamic, forcing brands to move faster and engage consumers across an increasingly complex ecosystem.

Key findings from the State of Beauty 2026 report:

  • Strong digital acceleration boosts global beauty sales by 10% year-on-year

  • E-commerce is growing six times faster than brick-and-mortar sales, reshaping channel strategies

  • 49% of consumers are willing to pay more for locally made products, reflecting the growing demand for authenticity and reliability.

  • 52% would pay a premium for convenience as time-saving solutions drive purchasing decisions

  • 63% of consumers prioritize mental health, demonstrating continued expansion in holistic beauty

“Beauty is entering a new phase of growth defined by resilience and increased complexity,” said Tara James Taylor, SVP of NIQ Beauty Vertical. “Consumers are becoming more intentional with their spending, seeking products that deliver real value, simplicity, and well-being. At the same time, AI and digital commerce are changing the way consumers discover and evaluate products, shifting advantage to brands that are clearly and consistently represented across the digital ecosystem.”

Digital behavior is accelerating this transformation. More than half of consumers are now considering AI-enabled shopping tools, and 49% have already received beauty recommendations from generated AI. Social commerce continues to gain momentum, with 53% of consumers purchasing through social platforms and 22% purchasing directly through TikTok Shops. In China, live streaming accounts for 70% of beauty sales on platforms like Douyin, highlighting the growing importance of content-driven commerce.

These changes are redefining how products are discovered, explored, and purchased, turning online engagement into instant conversions 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 beauty era.

About the report

NIQ’s Beauty Current Status Report 2026 is based on retail point-of-sale data across nine categories in 52 markets, complemented by advanced data collection techniques such as consumer panels and web scraping for a comprehensive view of global beauty purchasing behavior.

Click here to download the full review.

FAQ: The state of beauty in 2026

What is driving the growth of the global beauty market?

The global beauty market is growing 10% year over year, driven primarily by the rapid expansion of e-commerce, and is growing six times faster than in-store sales. Digital channels, social commerce, and AI-powered discovery are accelerating consumer engagement and conversion.

How will AI impact beauty purchasing decisions?

AI is increasingly shaping the way consumers discover and evaluate products. More than half of consumers are considering AI-enabled shopping tools, and 49% already receive beauty recommendations from generated AI to help streamline decision-making and personalize the shopping experience.

What role does social commerce play in the growth of beauty?

Social commerce is a key driver of category expansion. More than half (53%) of consumers now purchase through social platforms, and 22% directly through the TikTok Shop. Live streaming is mainstream in markets like China, and the majority of beauty sales on platforms like Douyin are driven by live content.

What are the top priorities of today’s beauty consumers?

Consumers are becoming more intentional and value-driven. Key priorities include convenience, reliability, and well-being. 52% are willing to pay more for convenience, 49% for locally made products and 63% believe mental health is essential in their beauty choices.

How should brands respond to these changes?

Brands must adopt digital-first, data-driven strategies that align with evolving consumer expectations. This includes investing in AI-enabled experiences, strengthening our presence across social and e-commerce platforms, and providing a transparent, intuitive, and value-driven product offering.

What makes NIQ’s data and insights unique?

NIQ combines one of the world’s most comprehensive consumer and retail datasets with advanced AI and analytics to help businesses understand what consumers buy, why they buy it, and what to do next. This allows brands to move from insight to action faster and more confidently.

About NIQ

NielsenIQ (NYSE:NIQ) is a leader in consumer intelligence, providing the most complete and trusted understanding of consumer buying behavior and uncovering new paths to growth. By combining an unparalleled global data footprint and detailed consumer and retail measurements with decades of AI modeling expertise, NIQ builds decision-making systems that help companies turn complex data into confident actions.

NIQ operates in more than 90 countries, covering approximately 82% of the world’s population and generating more than $7.4 trillion in global consumer spending. Through a cloud-based platform, advanced analytics, and AI-driven insights, NIQ delivers The Full View™ to help brands and retailers understand what consumers buy, why they buy it, and what to do next.

For more information, please visit www.niq.com.

Forward-looking statements:

this Press release regarding State Of Beauty 2026 reportmay include forward-looking statements regarding expected consumer behavior, market trends and industry developments. These statements reflect current expectations and projections based on available data, historical patterns and various assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “anticipates,” “plans,” “looks ahead,” “suggests” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future results and are subject to inherent uncertainties, including changes in consumer preferences, economic conditions, technological advances and competitive dynamics. Actual results may differ materially from those expressed or implied by these statements. Although we strive to base our insights on reliable data and sound methodologies, we undertake no obligation to update forward-looking statements to reflect future events or circumstances, except to the extent required by applicable law.

© 2026 Nielsen Consumer LLC. All rights reserved.

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