AI, E-Commerce Drive 10% Growth of Global Beauty Market

The global beauty market is anticipated to grow 10% year-on-year, per consumer intelligence leader NielsenIQ’s State of Beauty 2026 report.

Analysts say e-commerce is driving its growth, expanding six times faster than in-store sales. The findings highlight a rapid shift to digital-first, AI-influenced commerce across key global markets.

“Beauty is entering a new phase of growth defined by both resilience and rising complexity,” Tara James Taylor, senior vice president, beauty vertical, NIQ. “Consumers are more intentional in how they spend, seeking products that deliver real value, simplicity, and wellbeing. At the same time, AI and digital commerce is transforming how consumers discover and evaluate products, shifting advantage to brands that show up clearly and consistently across digital ecosystems.”

A Dynamic Path To Purchase

As consumer expectations evolve toward convenience, personalization, and seamless digital experiences, analysts say 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—requiring brands to move faster and engage consumers across an increasingly complex ecosystem.

What’s more, analysts also found 49% of consumers are willing to pay more for locally made products, reflecting rising demand for authenticity and trust; 52% will pay a premium for convenience, as time-saving solutions drive purchase decisions; and 63% of consumers prioritize mental wellness, signaling continued expansion of holistic beauty.

Digital behaviors are accelerating this transformation. More than half of consumers are now exploring AI-enabled shopping tools, with 49% already receiving beauty recommendations from generative AI. Social commerce continues to gain momentum, with 53% of consumers purchasing through social platforms and 22% buying directly via TikTok Shop. In China, Livestreaming accounts for 70% of beauty sales on platforms like Douyin, underscoring the growing importance of content-driven commerce.