For the past three years, prestige beauty has outperformed mass beauty in sales, and has created more consumer buzz. Fragrance surged, Sephora and Ulta expanded, and post-pandemic shoppers viewed prestige products as self-care—self-care that has become synonymous with luxury.

Now as we look toward 2026, the balance is shifting. For the first time in years, U.S. mass beauty is growing faster than prestige. This does not mean the end of prestige, but it is a clear sign of market maturation. Why did prestige surge? Why is momentum cooling? How will packaging define the next stage of competition?

Why Prestige Outpaced Mass — 2022–2024

Fragrance as the driver. By 2024, prestige fragrance represented nearly 30% of category sales. Concentrated fragrance essences, minis, and gift sets fueled growth, while fragrance created rituals and gifting traditions. It became “affordable luxury”—more accessible than a designer handbag or fashion, but clearly an upgrade from a treat like a latte with extra foam.

Premiumization as behavior. After long lockdowns, consumers splurged on treats that felt significant yet attainable. Prestige skincare and cosmetics profited, delivering indulgence without the price tag of high fashion.

Specialty ecosystems as amplifiers. Sephora’s move into Kohl’s and Ulta’s partnership with Target broadened discovery at retail. Exclusive drops and seasonal promotions fortified prestige as the innovation leader, with concepts often debuting in prestige before cascading to mass brands. (L’Oréal is a master of this). 

Why 2025 Looks Different

Normalization of growth. After years of double-digit surges, prestige has cooled; it was flat in Q1 2025 and just +2% in the first half of 2025. Fragrance remains strong, but not strong enough to elevate the channel.

Mass regains momentum. Mass beauty grew +4% in the same period, reaching $34.6 billion versus prestige’s $16 billion. Improved product quality, derm-inspired masstige brands, and sharper promotions are winning back value-conscious shoppers.

Economic headwinds. With tariffs, inflationary pressures, and cautious consumer spending, many are retreating to the comfort of mass.

Shifting retail dynamics. The Ulta/Target partnership concludes in 2026, potentially reshaping prestige distribution. At the same time, direct-to-consumer models and masstige entrants are surging—and are blurring channel lines.

What Prestige Still Owns

Despite challenges, prestige maintains the following advantages:

• Emotional pull. Fragrance rituals, gifting, and brand storytelling remain prestige strongholds.
• Experiential retail. Discovery, sampling, and exclusivity still set prestige apart.
• Packaging as theater. Aesthetics have always been prestige’s advantage, and presentation matters even more in a crowded, value-driven market.

The Blurred Future

The boundary between prestige, mass, and masstige is increasingly permeable. Consumers build mixed baskets—splurging on a prestige serum while buying a mass-market mascara. Globally, beauty is expected to grow about 5% annually through 2030, but growth will be selective. The winners will be brands that prove their value, whether through efficacy, experience, or exclusivity.

Packaging Implications

For prestige, packaging has become a frontline differentiator:

• Value signals. Packaging must go beyond aesthetics to communicate efficacy and transparency—ingredient cues, refill systems, and multi-use designs.
• Giftability. Minis, sets, and limited editions reinforce prestige’s emotional edge and create higher price ladders.
• Refill as luxury. Consumers now see refills as both sustainable and cost-effective. Prestige can lead here without diminishing exclusivity.
• Sensory experience. Materials, weight, and tactile details deliver the theater that mass cannot replicate.

Prestige beauty isn’t losing; it’s evolving. The category has matured, and mass is gaining ground. But prestige still holds powerful cards: ritual, experience, and packaging that transforms products into objects of desire.

If the past decade was defined by premiumization, the next will be defined by justification. To thrive, prestige must prove to consumers that every extra dollar delivers more—through the product inside, and through the story told by the package, itself.

Photo: Adobe Stock/ Artexa Studio (Generated with AI)

ABOUT THE AUTHOR

Ms. Elenita (Elle) Morris is a recognized consumer packaged goods brand design thought-leader with particular expertise in beauty, haircare and skincare. She frequently speaks at beauty conferences on the changing beauty consumer landscape and how brands are evolving their offerings to appeal to this new constituency.  Follow Elle Morris on LinkedIn.