Beauty, health, and wellness merge into one massive $900+ billion market
- Services grow faster than beauty products, accounting for more than 50 percent of global spend.
- Consumers are 2x more likely to use beauty for wellness than for self-expression.
- Europe's beauty market is biggest, followed by the United States and Asia.
- Fragrance is the fastest growing category at 10 percent.
- Clinical and aesthetic services are monthly habits, ex-Japan as consumers seek expert guidance.
CHICAGO, Nov. 4, 2026 /PRNewswire/ -- Global strategy and management consulting firm Kearney today released its comprehensive 2027 beauty outlook report, which forecasts a beauty market in which fragmentation is accelerating and the industry is shape-shifting faster than it's growing. The report analyzes top trends that will shape the future of the beauty market, including the emergence of a holistic category merged with wellness and health, changing customer demand and loyalty, and the continuing shift from brand-controlled communication to advocates and AI.
"Beauty is expanding well beyond products to services, health, and wellness, and this changing equation has critical implications for brands," said Tatiana Perim, Kearney partner, global and Americas lead of beauty and personal care, and co-author of the report. "The beauty consumer is purchasing a serum, a facial, and a sleep supplement with the same multifaceted goal in mind: better skin, more energy, and healthier aging. Consumers are shopping with their overall goals in mind, so the market needs to start making those connections and reflecting that in its offerings."
The report posits that beauty itself is becoming a serious wellness pursuit. "For the beauty consumer of today and the future, feeling good in their skin is more important than looking good on the surface," noted Kearney principal and report co-author Abhinav Konda. "Consumers are setting real objectives, whether that's a stronger skin barrier, denser hair, or better sleep. And they are judging beauty offerings against a single standard: does it actually work? 'Serious' beauty is being assessed on delivery and efficacy over time, over and above how it looks in the moment."
The research delves into the outlook for several beauty categories across the five markets studied: France, China, Japan, the UK and the United States. Among the granular findings:
- Makeup use is turning in different directions in each market.
- Skincare is moving fast from mainstream topicals to clinically vetted protocols.
- Fragrance is growing both within traditional and niche brands and from outside lifestyle brands.
- Haircare represents the clearest unmet need in the industry.
The Kearney 2027 beauty outlook report finds six key patterns that will be shaping the beauty industry:
Fragmentation is accelerating, and it will not slow down. Players from adjacent categories also want a piece of the beauty pie, and the frontier keeps expanding. The beauty marketplace is no longer constrained by geography; beauty brands have access to an ecosystem of partners that can enable and activate global reach for them. Social media is equalizing the traditional distribution advantage, creating a more level playing field for awareness.
Beauty is absorbing wellness and services, and investors already know it. Beauty, health, and wellness are consolidating into a blended $937 billion market that's growing at 5 percent+ a year. Beauty products, at $430 billion, have grown 6 percent a year for 4 years running; however, services are growing faster, at 7 percent. 2026 in itself saw meaningful financial and strategic investments, especially in wellness, and we expect this trend to continue.
Services take a larger share of the beauty basket, with more than half of monthly beauty spend across 4 of 5 markets. Clinical and aesthetic formats are already a monthly habit for more than a third of consumers, with the US over-indexing on clinical and recovery formats (cosmetic dermatology and IV therapy both 47 percent, medspa 43 percent). China leads on every measure, while Japan sits well below every other market on every service. These consumers skew younger and more affluent.
AI is restructuring how consumers discover and research beauty. Brands no longer have the lead role in how consumers assess their own needs. Advocates are playing that role now, translating science, introducing new concerns, and normalizing new routines through voices that people already trust. AI is going further, becoming the infrastructure that decides which brands are even considered.
Advocacy-led commerce is closing the distance between persuasion and purchase. The channels that shape how consumers understand a need and evaluate a solution are also starting to capture the sale. Confidence, curation, and convenience still decide the purchase, but AI is starting to host more of the transaction. Moreover, the massive success of TikTok Shop in the US over the past 24 months, and its continued momentum, is a positive indication that social and affiliate commerce, which have long been successful in China, can also deliver scale and prominence in Western markets.
Product loyalty is ahead of brand loyalty in every market. Across categories, credible proof is now the price of entry. Even though they will allow consideration, rational, proof-driven consumers won't automatically extend trust from one product to an entire range. Brands must prioritize building and defending their assortment with visible and provable efficacy, and combine scientific credibility with emotional connection.
"The winning brands of the future need to focus on a few priorities: connecting products with services, connecting science with advocacy, connecting the physical store with the AI-mediated journey," continued Tatiana Perim. "With the vast opportunities the marketplace is offering in the foreseeable future, one risk deserves a callout. As more brands lean on AI for concepting, claims development and creative production, the category risks homogenization. If everyone is optimizing for the same AI-legible proof points using the same tools, sameness is the likely output, not differentiation."
As the beauty and personal care landscape continues to evolve, dealmaking is also reshaping how companies compete and grow. Kearney's 2026 M&A in beauty and personal care report is also now live, examining the latest dealmaking dynamics and their strategic implications for companies, investors, and other market participants. The report explores record global deal volumes, the growing role of financial buyers, and the UK's position as a leading market. Read the full report here.
About Kearney
For 100 years, Kearney has been a leading management consulting firm and trusted partner to three-quarters of the Fortune Global 500 and governments around the world. With a presence across more than 40 countries, our people make us who we are. We work impact first, tackling your toughest challenges with original thinking and a commitment to making change happen together. By your side, we deliver—value, results, impact. To learn more about Kearney, please visit www.kearney.com.
Methodology: About Kearney's 2027 beauty outlook report
Kearney surveyed 2,500 beauty consumers across five global markets (France, the United Kingdom, China, Japan, and the United States) to understand the consumer shifts and expectations driving the sector. Supported by these insights, this report discusses six major shifts in the beauty market and sheds light on what each shift means for the companies that intend to lead. The survey was conducted in June 2026.
US press contact:
Meir Kahtan
Meir Kahtan Public Relations
mkahtan@rcn.com | +1 917-864-0800
SOURCE Kearney
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