Harris Williams Annual Health & Beauty Survey

Harris Williams recently polled 1,250 beauty enthusiasts to explore their spending behaviors and outlook, their priorities, and how they discover and buy products and services. In this new report, we summarize the key takeaways from this research and what M&A investors should consider.

Selected Highlights:

• Nearly 90% of consumers are spending the same or more on beauty and personal care today versus the 2023 survey, driven by inflation and steady consumption.

• Clean and safe products remain a high priority, but only if they deliver on performance and benefits, which are consumers' top criteria for selecting products.

• Health and wellness continue to converge: The No. 1 skin health priority is daily SPF, and the top beauty products solution for aging well is science-backed skincare.

• Social media and Amazon are gaining influence in product and brand discovery over traditional methods (e.g., browsing, advice), particularly for younger consumers who prioritize TikTok ahead of any recommendations.

• Brands founded by creators with authority (e.g., dermatologists, hair stylists, makeup artists) far outrank other types of creator-founded brands (i.e., fashion designer, celebrity, social media influencer).

• Consumers are more price-sensitive and affordability has gained importance in product selection, and mass retail and Amazon continue to hold the No. 1 and No. 2 preferred shopping destinations respectively.

"Nearly 95% of consumers plan to spend the same or more on beauty and personal care in the coming year, the same as last year's survey. We found the highest spending in hair and skin care followed by cosmetics, while fragrance gained consumer interest," says Kelly McPhilliamy, a managing director. "This should provide strategic buyers and financial investors with greater confidence in the sustainability of demand for the industry and highlight a number of exciting growth opportunities across subsectors and channels."