Beauty in Flux: Making Sense of Shifting Consumer Sentiment Amid Rising Costs

Trends Agency

A recent proprietary BEAUTYSTREAMS survey conducted among over 1,000 U.S. respondents reveals a striking reality: U.S. consumers are not only reevaluating their beauty and wellness priorities, but doing so with notable speed and discernment.

Even modest price increases of 10%-20% are enough to prompt reduced spending or brand switching for over half of those surveyed. As inflation solidifies into a long-term condition, sentiment is fluid and consumer behavior is adapting faster than many brands anticipate.

A New Value Equation Emerges

Essentials such as oral care, hair care, and facial skin care remain protected, regarded as core to hygiene, identity, and daily wellness. Over 60% of consumers say they would continue to buy oral care products even in the face of rising prices. Hair care and facial skin care follow closely, supported by strong emotional and functional ties to consumers’ sense of self and health.

In contrast, categories like nail products, beauty tools, and cosmetic procedures are being deprioritized or dropped entirely. These are increasingly framed as luxuries rather than necessities. For example, 21.59% of consumers say they would stop paying for cosmetic procedures altogether if prices rise by over 10%. Devices and tools face similar scrutiny, with over 20% of respondents likely to forgo them due to perceived lack of essential value.

Fragrance and make-up remain meaningful, but are shifting into a more intentional space. They are now seen as emotional anchors — bought when needed for mood or occasion, not routine. Brands must therefore shift from frequency-based strategies to emotional resonance and storytelling that supports self-expression and psychological well-being.

“Made in the USA” Needs a Purpose-Driven Reframe

The perception of “Made in the USA” is evolving. While still resonant among older generations, younger consumers require more than patriotic appeal — they expect alignment with sustainability, ethics, and social good. Only 5.7% of Gen Z say the “Made in the USA” label is “very important,” signaling a need to reframe domestic production as a symbol of transparency, ethical labor, and climate-conscious logistics.

With 69% of U.S. consumers willing to switch to local brands if foreign prices rise by 10-20%, domestic players are well-positioned — but only if they can deliver on values. Messaging must shift from nationalism to purpose, tapping into themes like local reinvestment, shorter supply chains, and social responsibility.

Intentional Beauty and Redefined Loyalty

What emerges is a market where price is no longer just a number — it’s a signal of trust, efficacy, and brand values. Consumers are redefining what they need, what they’re willing to pay for, and why. Price now communicates more than cost: it reflects fairness, ethics, and brand integrity.

Consumer loyalty is also being redefined, especially among Gen Z and male shoppers. These cohorts are highly open to brand discovery but demand personalization, speed, and digital fluency. For them, loyalty stems not from repetition, but from relevance and adaptability.

Strategic Takeaways for Brands

The full report urges brands — both domestic and international — to treat inflation not as a setback, but as a strategic pressure test:

For U.S. brands: The imperative is agility. Launching price-accessible formats, smaller sizes, or bundles can maintain accessibility. Transparent messaging that justifies cost through ethical sourcing, performance, and community impact is vital.
For non-U.S. brands: Tariffs and inflation create a “trial window.” With nearly 70% of U.S. consumers open to switching if foreign products become more expensive, now is the time to build trust through transparency, local partnerships, and culture-forward storytelling.
Across the board: There’s growing demand for at-home beauty rituals that blend efficacy with emotional uplift. Reframing tools, treatments, and even basics like body care as part of wellness rituals can retain relevance. Hybrid and sensorial formats, personalization, and skinification across categories are also opening new avenues for connection.

In the age of inflation, beauty isn’t disappearing — it’s being redefined. Brands that engage with clarity, cultural fluency, and multidimensional value will not only weather the storm, but lead a more intentional and resilient era of beauty consumption.

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The BEAUTYSTREAMS Premium online platform serves detailed expert insights, forecasts, and trend reports solely dedicated to the beauty industry and spans all beauty categories, from hair care to color cosmetics, skin care to fragrance, nails to men’s grooming, packaging design to ingredients, and more. In addition to insider content, BEAUTYSTREAMS Premium references a large collection of beauty imagery, an extensive product bank, and a social media bank catered to your needs. Facilitating your research, our regularly updated collections and reports save you time by serving you exactly what you need, when you need it.

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