Table of Contents
- Key Highlights:
- Introduction
- The Impact of Celebrity on Brand Growth
- The Role of Data Analytics in Understanding Trends
- Navigating a Slower Market
- The Competitive Landscape: DTC vs. Retail
- Emerging Trends Shaping the Beauty Landscape
- The Influence of Millennials and Gen Z
- The U.K. Market Dynamics
- The Future of Beauty: Opportunities and Challenges
- FAQ
Key Highlights:
- Consumer Edge reports that celebrity-driven brands like Rhode, Maely’s, and Phlur are leading the charge in direct-to-consumer (DTC) beauty sales, with Rhode's sales nearly tripling year-over-year.
- Despite a general slowdown in the beauty sector, innovative and socially amplified brands are thriving amidst shifting consumer preferences.
- Younger consumers, particularly Gen Z and Millennials, are shaping the market landscape, gravitating towards clean, transparent, and community-oriented brands.
Introduction
The beauty industry is undergoing a significant transformation, driven largely by the emergence of direct-to-consumer (DTC) brands, particularly those associated with celebrities. According to the latest report from Consumer Edge, titled “The State of Retail 2025 Beauty,” brands such as Hailey Bieber’s Rhode, TikTok sensation Maely’s, and the clean fragrance label Phlur are not only capturing attention but are also achieving remarkable sales growth in a challenging retail environment. This article explores the dynamics of the DTC beauty market, highlighting key players, emerging trends, and the factors contributing to the success of these brands in both the U.S. and U.K. markets.
The Impact of Celebrity on Brand Growth
Celebrity endorsements have long been a staple in marketing, but their role has evolved significantly in the beauty sector. Brands like Rhode, launched by Hailey Bieber, are leveraging the power of social media and celebrity influence to connect with consumers on a personal level. In the first half of this year, Rhode has emerged as the fastest-growing DTC beauty brand in America, with sales nearly tripling compared to the same period last year. This exponential growth can be attributed to Bieber's strong social media presence and the brand's alignment with current beauty trends, such as clean ingredients and minimalist packaging.
Similarly, Maely’s has gained traction through viral marketing on platforms like TikTok. The body care brand's standout product, the B-Tight Lift & Firm Booty Mask, has fueled a staggering 460% increase in sales year-over-year. This phenomenon illustrates how social media can act as a catalyst for brand awareness and sales, particularly for products that resonate with younger audiences.
The Role of Data Analytics in Understanding Trends
Consumer Edge utilizes anonymized credit and debit card transaction data to track spending trends across the beauty sector. This analytical approach provides insights into consumer behavior, revealing that while overall spending in the beauty industry has slowed, certain DTC brands are thriving. The report notes that digital-native brands that are science-driven and socially amplified are leading growth, in stark contrast to traditional players who are struggling to keep pace.
This trend underscores a critical shift in consumer habits, where younger shoppers are more inclined to support brands that reflect their values—such as sustainability, transparency, and inclusivity. The data indicates that younger consumers, particularly those aged 18 to 34, are gravitating towards brands like Rhode, Agency By Curology, and Primally Pure, all of which emphasize clean and effective formulations.
Navigating a Slower Market
Despite the impressive growth of certain DTC brands, the broader beauty market has experienced a slowdown. Overall, beauty spending in the U.S. and U.K. has seen declines, with DTC sales suffering the most, down approximately 10%. This downturn is attributed to consumers reallocating their spending to larger retailers like Amazon and big-box chains such as Walmart and Target, which have ramped up promotions and discounts to attract value-conscious customers.
Michael Gunther, VP and head of insights at Consumer Edge, highlights this trend, suggesting that consumers are becoming more discerning with their spending. A shift away from brand loyalty towards value-seeking behavior indicates that brands must adapt their marketing strategies to remain competitive.
The Competitive Landscape: DTC vs. Retail
While DTC brands are flourishing, traditional beauty retailers are also adapting to the changing market. In the U.K., for instance, retailers like Sephora and Space NK have experienced growth through strategic brick-and-mortar expansions and exclusive product launches. These initiatives have allowed them to capture a larger share of the market, particularly among younger consumers who appreciate the in-store experience and personalized service.
Consumer Edge’s report highlights several top-selling DTC beauty brands in the U.K., including Spoiled Child, Il Makiage, and Medik8. The latter is currently being acquired by L’Oréal for an estimated $1.1 billion, demonstrating the high value placed on brands that resonate with the younger demographic.
Emerging Trends Shaping the Beauty Landscape
Several key trends are emerging within the beauty market that are shaping consumer preferences. Social media virality continues to play a significant role in brand success, with platforms like TikTok becoming essential for product discovery. Brands that can create shareable content and engage with consumers authentically are more likely to thrive.
Additionally, there is a growing demand for science-backed beauty products and personalized experiences. As consumers become more ingredient-conscious, brands that provide transparency regarding their formulations are gaining traction. This trend is evident in the rise of medical aesthetics and the popularity of at-home beauty devices, which offer consumers convenience and customized solutions.
The concept of sensorial wellness is also becoming increasingly important. Consumers are looking for beauty products that not only enhance their appearance but also contribute to their overall well-being. This has led to a surge in interest in artisanal fragrances and products that promote relaxation and self-care.
The Influence of Millennials and Gen Z
Millennials and Gen Z are at the forefront of this beauty revolution, wielding significant purchasing power and influencing market trends. Gunther emphasizes that the 18- to 34-year-old demographic is reshaping the beauty landscape through their digital-first shopping habits and preference for brands that prioritize community engagement and transparency.
In the U.S., brands like Typology and Prose have gained popularity among younger consumers, who are increasingly drawn to clean and minimalist products. Retailers are taking notice, as evidenced by Sephora's recent market share gains among beauty customers aged 18 to 24, while Ulta Beauty has struggled to maintain its momentum with the same group.
As younger shoppers shift away from traditional beauty service chains toward more customized and brand-focused experiences, companies like Glowbar and Face Foundrie are emerging as preferred options for millennials and Gen Z seeking personalized beauty treatments.
The U.K. Market Dynamics
The U.K. beauty market reflects similar trends to the U.S., with brands like Rituals, Estrid, Jo Malone, and Charlotte Tilbury resonating with consumers aged 18 to 34. These brands have managed to capture attention through unique product offerings and effective marketing strategies, appealing to a demographic that values authenticity and relevance.
In both markets, the desire for clean, effective products and the influence of social media cannot be understated. The ability of brands to engage with consumers through relatable content and authentic messaging has become a cornerstone of successful marketing strategies.
The Future of Beauty: Opportunities and Challenges
Looking ahead, the DTC beauty sector is poised for continued growth, albeit with challenges on the horizon. The landscape remains fragmented, offering opportunities for innovative brands to carve out their niches. However, the competition is fierce, and brands must continuously adapt to changing consumer preferences and market dynamics.
As the beauty industry evolves, the integration of technology, such as artificial intelligence for personalized shopping experiences, will play a vital role in shaping consumer interactions. Brands that can leverage technology to enhance their offerings and create meaningful connections with consumers will be well-positioned for success.
Moreover, the rise of sustainability and ethical considerations in beauty products will continue to drive consumer choices. Brands that prioritize these values and communicate them effectively will likely resonate more with the environmentally-conscious consumer base.
FAQ
What are the top DTC beauty brands in 2025? According to Consumer Edge, the top DTC beauty brands include Rhode, Maely’s, and Phlur, which have all reported significant sales growth in the past year.
Why are celebrity-driven brands performing well? Celebrity-driven brands leverage social media influence and a personal connection with consumers, making them more relatable and appealing to younger audiences.
How is consumer behavior changing in the beauty market? Consumers are becoming more discerning, shifting their spending towards value-driven retailers and brands that offer transparency, sustainability, and community engagement.
What trends are influencing the beauty industry? Key trends include social media virality, science-backed beauty products, personalized experiences, and a focus on sensorial wellness and clean ingredients.
How are younger consumers impacting the beauty market? Millennials and Gen Z are shaping the beauty industry through their digital-first shopping habits, ingredient literacy, and preference for transparent and inclusive brands.
