2025 has been a year of dramatic shifts when it comes to consumer wants and needs. This has had a huge impact on the personal care and cosmetic markets, as consumers struggle with tightening their financial belts amidst economic uncertainty and political unrest. The recent years of brand growth and product categories in the personal care industry have led to significant market saturation in some sectors, causing additional challenges. So, what are the cosmetic market trends you should be aware of, as 2025 comes to a close and we look forward to 2026? Read on to find out…

The new beauty and personal care consumer…

As a result of changes, uncertainty and saturation, consumers have altered their attitudes toward spending and trialing new cosmetic and personal care products. This shift has seen the rise of a more ‘savvy’ consumer, ready to ask more questions and hunt for better value. This new beauty and personal care consumer is particularly focused on:

• value for money;
• scientific or data backed information; and
• results, fast.

There is also a strong move towards online purchasing and information over mainstream brands and brand loyalty.

Combined, these elements have a dramatic impact on how brands need to fine tune their marketing messages and upcoming product developments if they want to succeed and grow in 2026.

Value for money

With just about every country facing a significant increase in the cost of living, consumer purchasing has been limited by value for money. Not just perception based, it is now fiscally based, with fragrance and make-up being the hardest hit. Consumers are seeking affordable copies in both of these sectors, abandoning brand loyalty in some cases where they simply can’t afford their previously preferred products anymore.

Consumers are also looking for multi-purpose products and to lessen the amount of products they are using. They want products that do more with less: instead of a 5-7 step cleansing and moisturizing regime, there is the preference for 3-4 multi-tasking products with the same perceived results to fit their budget model better.

Treatment products that can be applied at home are currently preferred over professional care. Again, this is all to do with disposable incomes, and the cost of living now sees more people wanting at-home facial and hair care treatments rather than splurging at the salon. Expensive facial serums are now considered luxury items, whilst effective facial cleansers, lip balms and moisturisers that focus on their main concerns with noticeable performance differences are the staples of this new consumer.

Science and data drive purchasing decisions

For the first time in years, the drive to purchase based on performance claims with evidence has beaten natural and sustainability claims. While choosing natural and eco-conscious products is still high on their list, the new consumer emerging from this tighter economic period wants to know they’re purchasing what works - or at least science or data backed promises of how their cosmetic or personal care products are going to work for them.

Where natural and sustainable is one of their most important drivers, this new, savvier consumer wants to know how those items have been attained and how much of their product really meets these claims.

Whether it be make-up, hygiene, skincare or hair care, this new consumer wants facts about their products to feel comfortable about their purchasing decision, regardless of how long they have been using that product already.

Cosmeceutical products with clinical efficacy are becoming more saturated, so investing in additional product testing may help set your products apart in both performance and claims. Consider if future developments can benefit from unique test results; see how cosmetic products are tested for efficacy.

Results, fast

When money is tight, consumers want to see their purchases delivering on their needs, fast. In many instances, and for many types of personal care and cosmetics, this means instantly. While this is possible for some formulations such as hair care and styling, colour cosmetics and treatment products, it is more challenging for cosmeceuticals where extended time is needed to get the best results such as anti-ageing, whitening and even anti-acne. Where an active takes time to achieve the long-term desired results, make sure your formulas offer an instant appearance-based solution. For example, instant anti-ageing with soft-focus additives or polymeric-freeze fixers. Whitening creams with subtle coverage.

Anti-acne with soothing or cooling additives with instant calming sensory.

How to formulate cosmetics and personal care for the 2026 consumer

Understanding the drivers impacting this market shift is one thing, but how can your brand formulate to meet the needs of this new consumer? Remember the key items influencing their purchasing decision, and formulate solutions to meet these needs:

• value for money: create cosmetic formulas with multi-functional ingredients, or multi-tasking products, that represent real value for money and their tighter budgets. If you can trim a luxury ingredient for one that strengthens your product story and results, whilst at the same time meets the required end price, then that is a wise research and development investment.
• science and/or data backed information: don’t just claim your product is sustainable; give a clear data-based fact of how it is sustainable. Just what % is natural, if you are making that claim? If your product is claiming clearer skin, how does it differentiate from a competitor’s claims - give the results or comparative data. You say your make-up is better, so just how much longer does it last? These are all statements that can be made stronger with data. Of course, any science-based claims about clinical efficacy continue to be favoured, especially where it is unique to a brand and its combination of actives.
• results, fast: the new beauty and personal care consumer wants to know they’ve purchased wisely, with little patience for poor results. If your formulas are based around hair care, make sure that first use yields satisfaction. If your formulas are focused on skincare, make sure developments provide instant appearance gratification while the longer, epidermal based results take time to appear.

In addition to these key formulation aspects, make sure your marketing team is on board too! Ensuring a strong on-line presence with consumer driven testimonials is essential. Incorporate AI, try-on-line where possible and value driven incentives to sustain new product launches that better fit this new consumer model.

Happy formulating!