U.S. Beauty Sales Hit $50.6 Billion in H1 as Mass and Prestige Markets Converge

Quick Facts

U.S. beauty sales across mass and prestige reached $50.6 billion in H1 2025, per Circana.
Mass sales rose 4% to $34.6 billion; prestige climbed 2% to $16 billion, with fragrance the top-performing category in both channels.
Only 14% of U.S. beauty buyers believe higher prices signal better quality, driving cross-tier shopping behavior.

U.S. beauty consumers spent $50.6 billion across mass and prestige retail in the first six months of 2025, according to Circana data reported by Retail Brew. Mass sales grew 4% to $34.6 billion while prestige added 2% to reach $16 billion.

The defining trend was convergence. Premium-priced brands in mass retail and value-priced prestige brands both outperformed their counterparts. Consumers shopped for efficacy, not price tier.

“The beauty industry’s latest results are indicative of a consumer who is focused on efficacy and elevated value,” said Larissa Jensen, global beauty industry advisor at Circana. “Only 14% of U.S. beauty buyers believe that higher prices indicate a better-quality product.”

Fragrance Leads Both Channels

Fragrance was the standout category in H1. Mass fragrance sales soared 17%, driven by women’s products. Prestige fragrance grew 6% to $3.9 billion, with sales accelerating in Q2 behind new brand launches.

Value-conscious prestige shoppers shifted toward mini and travel sizes. Units in that format climbed 15%. New launches played a direct role in volume gains.

Hair Care Holds Strong in Prestige

Prestige hair care posted a 6% increase to $2.3 billion in H1. All segments grew, from single-digit gains in shampoo and conditioner to double-digit lifts in styling products. Scalp care rose 19%.

Mass hair care was softer. Dollar sales were up 4% but unit volume was flat, signaling that price increases, not consumer demand, drove the revenue gain.

Makeup Struggles Outside Lip

Prestige makeup reached $5.2 billion in H1, up just 1%, with units flat. Mass makeup declined in the low single digits on both dollars and units.

Lip products were the exception in both channels. In prestige, lip was the top contributor to makeup sales. In mass, it was the only growth area. Hybrid lip products combining tint with skincare benefits drove the category. Lip liner was among the fastest-growing subcategories.

Retailer Dynamics Shift Online

Ulta Beauty reported $11 billion in fiscal 2025 revenue and over $1.2 billion in net income. The chain showed strength across skincare, fragrance, and wellness. Average spend for its top customers runs around $30, compared to a peak price point of roughly $40 at Sephora.

Sol de Janeiro gained at both Ulta.com and Sephora.com in H1, with stronger growth at Ulta. Research firm Navigo described the two platforms as “strategically distinct ecosystems.” Brands focused on replenishment and scale favor Ulta. Brands built on storytelling and cultural relevance perform better on Sephora’s digital shelf.

Macro Pressures Mount

Not all brands navigated the half-year well. Estee Lauder reported net sales down 6% in fiscal Q2, citing challenges in Asian travel retail and what CEO Stephane de la Faverie called a “narrow focus on too few markets and channels.” He added: “Simply said, we lost our agility.”

Stacey Ramstedt, CMO at Church and Dwight, pointed to compounding headwinds. “Inflationary price increases have been plaguing us since as early as about 2022. We now have the additional tariff-induced price increases. And even more recently, in the last few months or so, we’ve started to see a tough job market,” she said. “All of these things have collectively driven the consumer to pull back their spend.”

Jensen flagged tariff uncertainty as a risk for the second half. She said adaptability and strategic agility are essential for brands navigating 2025. L’Oreal, which reported H1 growth led by fragrance and hair in both its mass and prestige divisions, offered one example of a multi-tier operator holding up under pressure.