{"id":10620,"date":"2026-03-02T11:31:56","date_gmt":"2026-03-02T16:31:56","guid":{"rendered":"https:\/\/taggstar.com\/us\/?p=10620"},"modified":"2026-03-02T11:31:57","modified_gmt":"2026-03-02T16:31:57","slug":"what-beauty-brands-need-to-know-to-win-online-in-2026","status":"publish","type":"post","link":"https:\/\/taggstar.com\/us\/blog\/what-beauty-brands-need-to-know-to-win-online-in-2026\/","title":{"rendered":"What Beauty Brands Need to Know to Win Online in 2026"},"content":{"rendered":"\n

Global beauty sales grew +10% in 2025. But underneath that headline, a major shift is underway, driven by constrained consumers, AI-powered discovery, and a fiercely competitive online channel. <\/p>\n\n\n\n

Last week, industry insiders from NielsenIQ<\/a> –Claire Marty<\/a>, VP, Global Beauty Vertical andEric Mills<\/a>, Senior Thought Leadership Consultant –\u00a0 shared data and trends impacting beauty brands in 2026 at the CEW Beauty Insights<\/a> event in London.<\/p>\n\n\n\n

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Here are some key takeaways from the panel discussion.<\/p>\n\n\n\n

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Consumers are constrained, but still buying beauty<\/h2>\n\n\n\n

According to research by NielsenIQ, only 17% of consumers say they can spend freely.<\/strong> Yet beauty remains a priority, because as big financial milestones feel out of reach, small indulgences fill the gap. 21% of Gen Z consumers say they\u2019re less interested in achieving significant life milestones like investing in a home or getting married, while 17% are buying more small personal luxuries, such as<\/strong> trading salon visits and costly alternatives for affordable at-home products.<\/p>\n\n\n\n

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Skin care and at-home rituals are winning<\/h2>\n\n\n\n

Another interesting insight from NielsenIQ research is that 40% of consumers are spending more time at home and going out less often<\/strong>. The impact is evident in the category growth rates. Skin care leads beauty growth at +13%, followed by fragrance at +12%. Cosmetics, which is often tied to going-out occasions, trails in growth at +7%. Products that feel like a meaningful self-care ritual are where the growth is.<\/p>\n\n\n\n

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Online is winning, but the bar is rising fast<\/h2>\n\n\n\n

Digital channels are outpacing physical retail everywhere. In North America, online beauty grew +19% vs. +2% offline. In the UK, 60% of online beauty consumers have purchased beauty products on Amazon, and the top 8 online beauty merchants now include TikTok Shop, eBay, Vinted (secondhand), and Temu, where the average cosmetics item costs only \u00a32.70. <\/p>\n\n\n\n

Consumers are hunting for value in every corner of the internet \u2013 9% of online beauty shoppers have purchased a second-hand item. It is evident that standing out requires more than a good product.<\/p>\n\n\n\n

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AI is rewriting the path to purchase<\/h2>\n\n\n\n

The most important trends to watch in 2026 include a return to skincare simplicity and the continued growth of K-beauty. AI, however, might be the biggest shift brands and retailers need to prepare for now.<\/p>\n\n\n\n

The use of GenAI is increasing daily – 26% use GenAI tools <\/strong><\/strong>such as ChatGPT or Gemini to get product recommendations <\/strong>and 49% of those AI users have already received beauty product recommendations.\u00a0<\/strong><\/strong><\/p>\n\n\n\n

As AI assistants become the default search interface, the “shelf” is shrinking dramatically, going from 50+ visible SKUs in physical stores to just 1-2 recommended SKUs in an AI-controlled shelf.<\/p>\n\n\n\n

In a world where AI recommends just one or two products, you’re either the answer or you’re invisible. The brands that get recommended will be those with the richest, most credible social proof<\/a>, including reviews, ratings, user content, and real-time shopper behavior. AI models synthesize this publicly available content when forming recommendations. Your social proof ecosystem is now a discoverability channel.<\/p>\n\n\n\n

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AI-powered conversion messaging, including social proof, attribute messaging, and dynamic badging, is equally important on your eCommerce site and across digital channels to drive conversions, increase AOV and RPV, and reduce bounce and abandonment rates.<\/p>\n\n\n\n