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Brands are also feeling the shift. “Consumers are under pressure, and over the past year, geopolitical uncertainty has further dented confidence,” says Emma Bates, COO of skincare brand S’able Labs. “With disposable income declining, shoppers are stretching replenishment cycles and opting for more affordable alternatives.” With ‘recession indicators’ and ‘recession core’ trending online, and a shaky global economic outlook, beauty brands need to brace for a dip in consumer spending power. Evan Feldstein, North America general manager of skincare tech brand Foreo, agrees: “We’ve observed a marked change in consumer behaviour. Broader economic uncertainty has driven more thoughtful, deliberate spending. Price sensitivity is here to stay.” To mitigate risk and respond to tariff turbulence, the brand has announced price increases of between 20 and 30 per cent across its portfolio. According to research organisation The Conference Board, consumer confidence on its monthly index declined for five consecutive months before a modest uptick in May following positive trade talks between the US and China. Confidence remains down across all demographics in 2025 to date, the firm said in a statement. Continued uncertainty over on-off tariffs is not helping.Officials Imll Drink Some Beer Shirt
“Beauty spenders are now more price conscious,” said Oliver Chen, managing director of retail and luxury at investment banking firm Cowen, in an analyst’s note. “Post-pandemic, we saw explosive growth, but that momentum is waning. Consumers are more cautious, and brands must refocus on building resilience and deeper customer relationships,” says Akash Mehta, co-founder of Ayurvedic haircare brand Fable & Mane. Beauty brands S’Able Labs and Fable & Mane have both experienced a shift in consumer shopping behaviour, citing market uncertainty and, as a result, challenging brand engagement. Some elements of the beauty playbook no longer hold quite the same sway. While high price points have historically suggested superior product quality, today’s discerning consumer often measures value through efficacy and ingredient transparency. Customer retention rates become harder to maintain unless brands consistently demonstrate performance, authenticity and relevance. In this new value paradigm, brands earn loyalty through substance, rather than status. “Consumers are more mindful about spending. They’re hunting for that sweet spot: effective, high-quality products at accessible prices,” says Lucy Ruehlemann, VP of clean beauty brand Saie. That’s why the masstige category (mass-market brands with prestige-level performance) has gained significant market share. Brands such as The Ordinary and La Roche-Posay are boosting sales by blurring the lines between accessible prices and quality. Olivia Stelmaszczyk, Euromonitor’s senior beauty and fashion analyst, says this is why clinical, dermatologist-founded brands are outpacing premium-priced players. Conglomerates such as L’Oréal and Beiersdorf have reported sales growth in the category. “Consumers are prioritising proven efficacy,” says Stelmaszczyk. “Functional value is now a key determinant of what people are willing to pay.”
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