There’s a rapid revolution happening among beauty buyers, and traditional cosmetics retailers like drug stores and mass retailers must take action. 

For one, social media’s influence on how beauty consumers shop today is very much real and growing. TikTok Shop, Temu, Instagram, and more, are becoming destinations to buy beauty brands, and they’re also influencing purchases on other e-commerce sites, including Amazon. 

At the same, inside physical locations, beauty products can be locked behind cases to prevent theft, and the stores lack an exciting experience. If traditional retailers don’t make changes, the beauty category could be on a bullet train to social and online commerce. Here’s what’s happening, according to NielsenIQ’s (NIQ) seminal report, State of Beauty in 2025.

NielsenIQ Data Shows the Power of Social Selling

Currently, the TikTok Shop is available in 10 countries outside of China, including the U.S. and U.K., and it’s already having tremendous success. The site has increased its share of growth within beauty and wellness online sales by nearly two points in the U.S. and by more than three points in the U.K. However, TikTop Shop also shows a growing influence on e-commerce overall. NielsenIQ data reveals:

• 52% of TikTok Shop buyers also buy beauty items at Amazon in the U.K.; 13.8% of TikTok Shop buyers in the U.S. also buy beauty on Amazon. 
• More than 45% of beauty consumers said they trust TikTok Shop, and more than 30% of consumers said they trust Shein and Temu. 
• 68% of purchases on social selling platforms are made on impulse.

Beauty buyers are also looking to explore and gain trust in AI and personalized, digitized shopping experiences: 

• Nearly 50% of Gen Z consumers would accept a product recommendation from an AI assistant like Siri or Alexa vs. only 20% of Boomers. 
• More than 45% of Gen Z and Millennial consumers said they’d leverage AI to automate their everyday shopping decisions. 

Younger consumers are embracing the convenience in social selling and AI, and it’s impacting brick-and-mortar stores.

Trouble in Traditional Beauty Retail

While online shopping is thriving, traditional in-store experiences seem to be heading in the other direction. In-store beauty sales have been growing at a slower rate than ecommerce sales for the past 4 years. In the drug channel alone, sales were down -2% in 2024 compared to a year ago.

Foot traffic is down at drug stores, and products getting locked up behind cases is not helping. More than 40% of consumers surveyed said they’re less likely to revisit a store that has beauty items locked away for loss prevention. 

E-commerce Becomes a Global Force in Beauty

Across the globe, e-commerce sales are up year over year. Moreover, in France, Germany, Canada, Italy, India, Australia, Brazil, and the U.S., e-commerce sales are up by double digits.  

Amazon continues to outpace all other U.S. channels in share of sales growth, too, as retail consolidation alters the traditional landscape. There are a lot of changes happening in beauty retail, and it’s powering a rapid revolution toward online shopping. Traditional retailers will need to tap into the power of social, as well as design exciting in-store experiences to keep pace.