Beauty remains one of retail’s fastest-growing categories, propelled by Gen Z and the emerging spending power of Gen Alpha. Digital skincare education is driving younger consumers toward brands that emphasize skincare rituals and community over filter-driven perfection. The two cohorts drive up to 40% of skincare revenue, reshaping expectations around transparency, efficacy, and environmental accountability. Gen Z currently commands the highest purchase penetration in the category at nearly 40%, indicating they are considerably more likely to invest in beauty and cosmetics than the average consumer. This data signals a broader shift in beauty retail as younger, digitally influenced consumers increasingly drive demand. Retailers are expanding assortments that appeal directly to this cohort, projected to unlock $5.5 trillion in spending by 2029. At the same time, Indie DTC brands are rapidly scaling into major retail channels such as Sephora and Ulta, where discovery, experimentation, and social validation drive purchasing behavior. 

Global cultural influence is also accelerating category growth. K-beauty and other culturally rooted beauty traditions — including South Asian, Afro-diasporic, and Latin beauty — are shaping product development through heritage ingredients, ritual-based routines, and inclusive shade ranges. These brands increasingly move from digital-first launches into physical retail to support experiential discovery and social shopping.

Beauty’s most meaningful transformation is philosophical. Skin is increasingly viewed as a reflection of overall health, fueling more intentional beauty rituals centered on maintenance, prevention, and wellness.

Global Brands Landing on U.S. Shelves

K-Beauty: From Trend to Retail Force
Korean beauty has become an increasingly influential force shaping Western skincare expectations around ingredient innovation and routine-based care. South Korea’s beauty exports reached $11.4 billion in 2025, surpassing the U.S. to become the world’s second-largest cosmetics exporter, behind France. The segment’s year-over-year sales grew 37% in the U.S., and K-Beauty products have reportedly sold 3x faster than average beauty products on Amazon.

Retailers are responding quickly to the demand, fielding licensing and partnership deals. Sephora has secured exclusivity on brands including Beauty of Joseon, Hanyul, and Aestura, while Ulta Beauty has expanded its K-beauty footprint through licensing agreements with Medicube and Anua. Through its K-Beauty World partnership, Ulta has also accelerated the path from concept to shelf, reducing launch timelines from roughly nine months to as few as nine weeks.

K-beauty’s appeal spans multiple consumer segments. While brands such as Hanyul and Aestura lean into premium, wellness-oriented skincare, the category also includes more accessible, trend-driven concepts that resonate with younger and value-oriented shoppers. This range of positioning has accelerated expansion beyond prestige beauty retail. TonyMoly, for example, has entered 600 Walmart locations, while CJ Olive Young — Korea’s largest health and beauty retailer — is opening its first U.S. brick-and-mortar location in Los Angeles this month, signaling growing confidence in demand for Korean beauty concepts in the U.S. market.

The Next Wave of Global Beauty Brands
International beauty markets outside of K-beauty are actively gaining traction in the U.S. Domestic Chinese cosmetic brands now command 55% market share in China, with exports rising 12% year-over-year in the first eight months of 2025, marking a third consecutive year of double-digit growth. Brands such as Flower Knows — originally rooted in cosplay and fantasy-inspired aesthetics — have entered the U.S. market through online partnerships with Ulta Beauty, reflecting how Gen Z interests are increasingly influencing beauty storytelling, packaging, and consumer engagement.

Latin American beauty is also moving toward greater retail visibility, experiencing 13% growth in the first half of 2025, outpacing the global rate. Mexico, in particular, is emerging as a key growth market, with Ulta Beauty expanding through its Grupo Axo partnership and Sephora continuing to grow its footprint across the country — signaling increased confidence in regional beauty demand and consumer spending. Brazilian fragrance and apothecary brand Granado is also expanding its reach among U.S. consumers, reflecting broader interest in heritage-led fragrance and wellness concepts. More recently, Mexican haircare brand Latina expanded into 1,200 Ulta Beauty stores in the U.S. less than a year after entering the market, a move that may position the brand to benefit from increased cultural visibility tied to the 2026 FIFA World Cup and 2028 Olympics.

Retailers are also increasing exposure to African beauty concepts. By late 2025, Sephora, Ulta, Goop, and Space NK were carrying A-beauty brands, while strategic investments and expansions on the continent — including Beyoncé’s Cécred haircare brand launching in Ghana — point to growing long-term interest in the category.

Retail Implications: A More Global, Wellness-Oriented Beauty Category

For retailers and landlords, the beauty category signals an increasingly dynamic landscape shaped by changing demographics, evolving wellness priorities, and faster product innovation cycles. Younger consumers are driving demand for products that feel more effective, transparent, and personalized, while a more multicultural consumer base is influencing broader expectations around assortment and relevance. At the same time, retailers are accelerating exclusive partnerships and global brand introductions to differentiate in a highly competitive category.

The beauty and spa sector has experienced a substantial post-pandemic resurgence. Annual visits climbed roughly 20% over pre-pandemic benchmarks — from 695 million in 2019 to 836.5 million in 2025 — while average visits per chain rose from 5.3 million to 6.7 million over the same period, reflecting stronger demand and improved operator productivity. Adjacent categories such as nail care and extensions are also benefiting as consumers treat beauty as both a recurring wellness ritual and a form of self-expression. McKinsey’s 2025 State of Beauty confirms that shoppers continue to prefer stores for discovery and experimentation — underscoring beauty’s resilience as a physical retail category.

To discuss how these shifts are shaping retail strategy and tenant demand, connect with a Colliers retail advisor to explore what these trends may mean for your portfolio or market.