U.S. Beauty Market Delivers Steady Q1 Growth, Circana Reports

In a new report from Circana, U.S. beauty industry performance was nearly on par across both the prestige and mass retail sides of the business in the first quarter (Q1) of the year. 

Prestige retail dollar sales grew by +6% to $8.1 billion in Q1 2026, compared to the same period last year, as mass retail sales rose by +7% to $18.1 billion, according to Circana. 

Larissa Jensen, global beauty industry advisor at Circana, and a member of Beauty Packaging’s Board of Advisors, said, 

“Mass and prestige beauty are growing at nearly the same rate for the first time in five years. Fragrance, facial skincare, hair treatments, and personal care products like body lotion and wash continue to benefit from consumers prioritizing self-care, elevated routines, and wellness driven products. We expect these areas to remain strong this year, as shoppers continue to shop across channels, seeking affordable yet high performing beauty products that feel good and work well.”

Unit demand followed the positive trend line, with units sold in both prestige and mass retail posting growth in the low single digits.

Online and social shopping continue to capture share of beauty retail, reinforcing a structural shift in how consumers discover, trial, and replenish products. 

Social commerce is further accelerating this shift, with beauty emerging as the dominant category on TikTok Shop in 2026. 

Fueled by live shopping events and promotional moments, beauty and personal care led all categories in Q1, capturing 20% of TikTok Shop dollar spending. 

Launched in late 2023, TikTok Shop already represents 10% of total beauty e-commerce sales, underscoring its rapid ascent as a meaningful retail channel.

Jensen added,

“Digital and social platforms are no longer just a testing ground for emerging brands; they are full scale commerce engines. For both established players and smaller brands, success increasingly hinges on how effectively digital and social plans are embedded into marketing and product strategies. Rather than optional or additive, these platforms must be foundational to how brands build relevance, drive demand, and scale growth.”

Growth by Category

Makeup was the softest-performing category in Q1 across prestige and mass, with modest dollar growth offset by declining unit demand, particularly in mass. However, pockets of strength emerged in the lip and face. 

The hair category showed a clear channel divide. Prestige was the fastest-growing category by dollars and a top unit driver (second only to skincare). This was fueled by continued strength in treatments.

In mass retail, value-seeking behavior drove double-digit growth in shampoo and conditioner combo packs.

Skincare remained steady in growth. Prestige gains were led by facial care; face creams, serums, and eye treatments drove most of the category growth.

Additionally, clinical brands captured over one-third of dollar sales, reinforcing the importance of science-backed positioning.

Skincare also showed broad-based strength at mass retail, with nearly all face and body segments growing in both dollars and units.

Fragrance was among the strongest performers overall, with gains across both channels.

In mass, growth was driven by double-digit increases in women’s fragrances, while in prestige, higher-value formats, luxury offerings, and continued momentum in minis (also growing double digits).