Efficacy-Led Beauty Brands Gain Share as Market Slows
Event summary
- Direct-to-consumer beauty spending in the U.S. and U.K. down 14% year-to-date.
- Clinical, efficacy-led brands like JiYu Skin and Rejuran outperforming.
- Mass channels Amazon, Target, and Walmart capturing growing share of beauty dollars.
- Global brands gaining share as digital platforms facilitate cross-border shopping.
- Fragrance category remains resilient across price points.
The big picture
The beauty market is experiencing a shift toward efficacy-led brands as consumers prioritize proven results over viral trends. This strategic anomaly is occurring against a backdrop of slower spending, with direct-to-consumer channels underperforming. The convergence of beauty and wellness, along with the resilience of the fragrance category, highlights the fragmentation of consumer spending based on perceived value. The market dynamics suggest that brands reallocating investment toward functional benefits and wellness intersections are best positioned for the second half of 2026.
What we're watching
- Brand Strategy
- How efficacy-led brands will sustain momentum in a slowing market.
- Retail Dynamics
- Whether mass channels can maintain their growing share of beauty dollars.
- Global Expansion
- The pace at which international beauty brands capture U.S. and U.K. market share.
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