What: E-commerce and social platforms now account for more than half of global beauty sales, with social commerce driving 68% of purchases worldwide.

Why it is important: The dominance of digital channels, particularly in markets like China where online beauty sales reach 87%, signals a permanent change in consumer behavior that retailers must address to remain competitive.

The beauty industry is experiencing a transformative shift in its retail landscape, marked by a robust global value increase of 7%. This growth is primarily driven by the unprecedented rise of e-commerce and social commerce channels, which now account for more than half of all beauty sales worldwide. In China, online channels dominate with 87% of hair and skincare sales, while the U.S. market shows significant digital growth with 41% of beauty sales occurring online. Traditional physical retail is adapting to maintain relevance, focusing on differentiated experiences and community building to complement digital channels. Social commerce has become particularly influential, driving 68% of global beauty sales, with platforms like TikTok emerging as major retail channels. The platform has become the eighth largest beauty retailer in the U.S., with three in four users making purchases after engaging with content. This evolution represents a fundamental change in how consumers discover, evaluate, and purchase beauty products, requiring brands to develop comprehensive strategies that span both digital and physical retail spaces.

IADS Notes: Recent market developments strongly validate this transformation in beauty retail. As observed in March 2025, TikTok Shop's expansion into France marked a significant milestone in social commerce evolution, while South Korean markets demonstrated the resilience of beauty sales with up to 24% growth. The trend toward digital innovation is further supported by January 2025 data showing beauty retailers embracing new formats, such as Sephora's venture into streaming content. This shift is particularly significant for engaging younger consumers, with November 2024 research highlighting the increasing importance of tech-driven, immersive shopping experiences.

Social and e-commerce now drive more than 50% of beauty sales globally