•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
In the beauty market, fragrances and makeup brands are showing strong growth potential, but one segment remains comparatively subdued: skincare—particularly luxury skincare products.
According to Circana data, in Q3 2025 sales of luxury skincare rose a modest 3% year over year to $9.7 billion. The segment was also the only one to record a decline in average selling price, down 3% in 2025. By comparison, mass skincare grew more robustly, up 5%, while the luxury segment’s growth lagged.
Several factors are converging to slow the luxury skincare segment. Consumers are tightening budgets, while beauty brands are increasingly demonstrating that their quality can match premium products.
A wave of large beauty players from Korea has also been introducing competitively priced products, and e-commerce is disrupting traditional distribution channels. In addition, some investment funds have reportedly reduced exposure to premium skincare due to a lack of brands able to deliver stable revenue.
Affordable skincare brands have long argued that consumers do not need to spend hundreds of USD each month for effective skin care. The Ordinary, launched in 2016, is cited as an example of this positioning, and other brands have adopted similar strategies, including Byoma, Beauty of Joseon, and Rhode.
At the same time, consumers are demanding higher product efficacy. When consumers upgrade skincare spending, they tend to choose specialty brands from dermatology clinics such as Environ or IS Clinical. If budgets allow, they move to ultra-premium lines like La Prairie.
Sephora has historically served as a launchpad for luxury skincare brands including Tatcha, Drunk Elephant, Sunday Riley, Youth To The People, and Supergoop. However, the retailer’s current skincare product development trajectory appears less clear, with Sephora no longer investing in new high-end skincare brands and instead focusing on younger, trendier labels.
The new brand pipeline at Sephora is described as lacking a clear winner. More brands compete for shelf space, while many skincare companies expand into makeup—such as Summer Fridays and Eadem—to capitalize on a lipstick trend that shows no sign of cooling. The article also notes that betting on hot names like Rhode may not be a sustainable long-term strategy.
It further points to a change from earlier leadership: at the height of Sephora’s skincare category, Priya Venkatesh led global commercial efforts by actively seeking and bringing in brands that later became market stars. Beyond the Rhode entry and an Olive Young partnership announced earlier this year, the article says Sephora has not recorded many notable skincare breakthroughs recently.
Ulta Beauty’s skincare sales, covering both mass and premium segments, have been largely driven by familiar mass-market brands such as La Roche-Posay and Clinique, as well as Korean labels like Medicube. The article argues that relying on these names is not a long-term solution, particularly as the retailer continues building its own brand capabilities.
In a separate development, Estée Lauder and Puig confirmed they are in talks over a potential merger. No official agreement or structure has been announced, but both parties have indicated that discussions are progressing.
The article frames the potential deal as combining two different industrial models. Estée Lauder is described as building strength across skincare and makeup in both mass and premium segments, with brands including Clinique and Estée Lauder and a broad global distribution network. Puig, by contrast, is described as specializing in high-end fragrances, with a portfolio including Carolina Herrera, Rabanne, Jean Paul Gaultier, and niche and hit brands such as Charlotte Tilbury.
If the deal proceeds, the article says the combined group could cover major segments of high-end beauty with improved competitiveness—drawing on Estée Lauder’s retailer relationships and manufacturing capacity, while Puig would contribute creative flexibility and brand storytelling in fragrance.
However, it also notes that integration could be complex, including challenges in aligning branding, development pace, and core values, not just balance sheets or supply chains.
In an environment where consumers are increasingly discerning, the article argues that brand storytelling alone is no longer enough to justify high prices. Premium skincare is being pushed to reinvent itself through products with clear efficacy, reasonable pricing, or specialist credentials.
The core challenge is shifting from generating desire to proving real value—through formulas, experiences, and long-term results. As the market enters a “filtering phase,” the article concludes that only brands balancing science, efficacy, and symbolism may be able to sustain premium positions.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
