Beauty’s Next Frontier: Premium Gains in the UK and Europe

UK beauty market dynamics

The UK beauty market was valued at £10.2 billion in 2024, with the premium sub-segment (luxury skincare, make-up and niche fragrances) accounting for almost half of that total at £5 billion. From 2024 to 2028, premium is expected to grow at a 5 % CAGR, outpacing mass beauty’s 2 % CAGR.

Key drivers include:

• Niche fragrances leading the charge with an 8 % CAGR.
• Premium skincare and make-up expanding at around 3 % CAGR.
• Indie and D2C brands accelerating even faster, 26 % CAGR over the past five years, by leveraging authentic storytelling, social-media discovery and limited-edition launches.

What is driving the UK beauty market’s growth? Scroll through our interactive slide below on the UK Beauty Market.

European beauty market highlights

Retail trade within Europe topped €52.3 billion in 2024, while exports added another €29.4 billion, 38 % of which originated in France. Germany remains the largest single market (€16.94 billion), followed by France (€14.18 billion), Italy (€13.39 billion) and the UK (€12.24 billion). Skin care led by value (€30.1 billion), with fragrances (+8.9 %) and decorative cosmetics (+8.2 %) posting the fastest growth rates.

This scale demands a nuanced playbook. Local regulations, payment preferences and consumer behaviours vary significantly, meaning a one-size-fits-all approach risks underperformance. Strategic investment in consumer analytics and data insights will be crucial to identify high-growth segments, optimise cross-border e-commerce and tailor messaging that resonates in each market.

Digitalisation and customer experience

Digital innovation has become a cornerstone of growth. Leading beauty houses and agile indies alike are investing heavily in omnichannel platforms, AI-driven personalisation and virtual try-on tools to elevate customer engagement. Data-led insights are enabling hyper-targeted product recommendations, while immersive experiences are forging deeper emotional connections.

Looking ahead

For C-suite executives and investors, the following trends warrant close attention:

• Premiumisation: Consumers increasingly seek quality, innovation and visible results—luxury packaging and personalised experiences are becoming table stakes.
• Indie disruption: Agile brands continue to capture share through direct-to-consumer e-commerce and influencer-led campaigns.
• Sustainability and ethics: “Clean” and pharma-backed lines are thriving as shoppers prioritise transparency and efficacy.
• Regulatory alignment: Efforts to harmonise Europe’s regulatory framework will be critical to sustaining growth and global competitiveness.
• Digital acceleration: Investment in technology such as AI, AR and data analytics will separate leaders from laggards in delivering seamless, personalised customer journeys.

Ready to capitalise on these trends?

Singulier’s blend of consumer analytics, strategic foresight and operational expertise has supported numerous beauty sector investments and transformations, enabling brands to seize growth in this dynamic environment. Contact us to speak to our experts.