Despite continued frugality due to ongoing economic pressures, as well as global conflicts and climate concerns, European shoppers are “splashing out on joy” by turning to mood-boosting, stress-releasing, nourishing products, according to the new report.
The findings also note that European consumers are “become more selective about what they buy, seeking out products and brands that deliver clear value, meaning or emotional return.”
European head of consumer packaged goods at Circana Anne Haine said that long-held ideas about value and necessity are being rewritten as consumers “reassess how they eat, play and look after themselves and their loved ones.”
“Brands that win in 2025 are those that understand this new consumer mindset – practical yet emotional, cautious yet indulgent,” she said.
Fragrance, hybrid colour-skincare & food-based beauty
The report showed that Fragrance is an important beauty category within this shift, as scents have potential to be mood-lifting, confidence boosting, relaxing, and can evoke a sense of wellbeing.
Interestingly, in Europe in 2024, sales of fragrances that cost €150 or more were up +32% and reached a total of €653m, in comparison to only +8% growth for the total fragrance market.
The lower end of the scent market also saw success. As some shoppers looked for more affordable alternatives, sales of body sprays doubled in 2024.
In times of financial hardship and political uncertainty lipstick sales used to skyrocket – a phenomenon dubbed the lipstick effect. However, Circana’s new report has shown that today’s consumers – especially younger ones – are favouring tinted moisturisers, concealers, setting sprays, and powders, often with added skin care benefits, to give them a ‘glow-up.’
It also highlighted the popularity of food-based beauty, from ‘glazed-doughnut’ skin and ‘butter yellow’ nails to ‘cherry cola’ lips, noting that “food language and aesthetics are tapping into consumers’ connection with, and memories of, food in a powerful way, feeding the senses and nostalgia.”
Chief beauty analyst for Europe at Circana, Mathilde Lion, said that sales in the beauty category are not simply driven by appearance anymore. Instead, beauty and personal care is a daily emotional pick-me-up for people.
“Niche scents, premium hair care products and makeup with innovative textures are just some of the examples,” she said.
“Fuelled by social media, beauty trends are evolving at break-neck speeds but there is no doubt that this focus on wellness and self-love is rewriting the European beauty playbook and set to continue well into 2025.”
