INTHEBLACK November 2026 - Magazine - Page 20
FEATURE
Beauty sales tend to remain strong
during economic downturns.
The market is expanding through
wellness products, younger
buyers, wider product ranges
and digital discovery.
K-Beauty is a major growth
driver, reaching A$20.8 billion
in 2025. Its success comes from
quickly responding to consumer
needs, affordable innovation
and strong digital channels.
Dupes, private labels and
social commerce are growing
rapidly. Physical stores are also
becoming more experiential,
while sustainable products
must remain affordable.
Inside the
beauty boom
The beauty industry is finding new customers, categories and channels for
growth in a challenging economy. As brands race to keep up with consumer
needs, the sector offers valuable lessons on innovation and agility.
Words Susan Muldowney
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20 INTHEBLACK November 2026
IN 2001, LEONARD LAUDER, THEN
chairman of beauty empire Estée Lauder,
noticed an unusual trend in cosmetic sales.
The US economy was down and consumers
were cutting back on big-ticket purchases,
but women were splurging on the small
luxury of lipstick. Lauder called it the
“Lipstick Index” — a theory that as parts
of the economy come under pressure, people
find affordable ways to treat themselves.
Fast-forward more than two decades and
while many industries are struggling under
tough conditions, the global beauty market
is booming and consumer psychology is
just one part of the puzzle.
Evolving definitions of beauty, expanded
product categories and digital-first discovery
are helping to fuel market growth, with
McKinsey forecasting global beauty sales
to increase by 5 per cent a year, reaching
US$590 billion (A$819.5 billion) by 2030.
The Asia-Pacific region is a key engine of
that growth, accounting for more than a third
of global value in 2025. Korean beauty — or
‘K-Beauty’ — accounts for much of the market,
recording 22 per cent year-on-year growth to
reach US$15 billion (A$20.8 billion) in the
same year.
“It is important to see K-Beauty not just
as a beauty trend but as a business model
