The allure of the American market has beauty brands rethinking their strategies. With a soft Chinese market and travel retail in 2025, major beauty labels are turning their attention to the US. But here's where it gets controversial: is the US market a sure bet for beauty brands?
L'Oréal and Estée Lauder, two industry giants, have publicly signaled their focus on the US, with L'Oréal's CEO even calling it a "bullish" move. However, as more brands flock to this region, the competition for American consumers' attention and dollars is intensifying.
Loewe Perfumes' pop-up at Rockefeller Center is a prime example of this trend. The brand's first US storefront, located near the iconic Christmas tree, is a strategic move to tap into the lucrative holiday season. But is this enough to stand out in a crowded market?
Dominique Temple, founder of DT Consulting, believes that a successful US launch requires a unique blend of storytelling, retail positioning, influencer partnerships, and cultural immersion. She emphasizes the need to clarify brand positioning and establish credibility.
Marc Elrick, CEO of Byoma, a UK-based skincare brand, highlights the importance of convenience and ease in the US market. He suggests that American consumers are willing to invest in luxury and premium beauty without the frills often associated with these products. This has led to mass market retailers like Ulta Beauty, Target, and Amazon becoming key players in brand discovery and expansion, especially among younger consumers.
Amazon, in particular, has seen tremendous growth in its beauty category, reaching over a hundred million unique customers monthly. The platform stocks numerous premium labels and aims to scale its premium beauty business further. International labels, like Charlotte Tilbury, are taking notice and expanding their presence on Amazon.
Ulta Beauty, another key player, has raised its full-year sales guidance, with international brands leading the charge. Fragrance and skincare categories are thriving, with Valentino, Dolce & Gabbana, and K-Beauty brands taking the spotlight.
"The prominence of mass market retailers in the US is tied to scale, convenience, and discovery," Temple explains. "They offer a one-stop shopping experience, combining beauty with everyday essentials. Strong loyalty programs also play a role in incentivizing purchases."
Marissa Lepor from The Sage Group agrees that today's consumers are open to mixing and matching products across price points. This has led to brands diversifying their distribution across DTC channels, retailers, and online marketplaces.
While the market shows promise, economic pressures remain. American consumers want value for their money and demand transparency. "The consumer is more informed and globalized than ever," Elrick says. "They're not just sold by marketing; they want substance."
Temple adds that US consumers are diverse, convenience-driven, and brand-loyal when trust is earned. The market's dynamism, with its diverse cultural identities and beauty ideals, presents both opportunities and challenges. Brands must have a specific strategy to cater to this unique market.
In a post-Covid world, consumers have become self-made experts, and brands must offer more than just marketing. "Even younger generations are ingredient-savvy," Temple notes.
As the beauty market becomes saturated, brands are exploring innovative strategies to build long-term customer relationships. Immersive brand experiences, such as spas and retail stores, are gaining popularity.
"These physical spaces allow brands to build loyalty and introduce customers to the brand's world," Lepor explains.
111Skin, an ultra-high-end skincare brand, has embraced this strategy with its standalone spa at New York's Plaza Hotel. The brand, co-founded by Eva and Dr. Yannis Alexandridis, has seen double-digit growth in the US since 2024, now accounting for 40% of its business.
"The US hospitality sector is influential because experience drives aspiration," Temple says. "For luxury beauty, a spa presence allows brands to engage a captive audience willing to spend. It offers a boutique environment, setting luxury players apart from mass channels."
Dior and Guerlain, both LVMH beauty brands, have also entered the hospitality space. Dior's permanent spa residence on Madison Avenue offers a Haute Couture Treatment, while Guerlain's 22,000-foot spa in Waldorf Astoria provides a full wellness clinic.
"This is a true sanctuary in the heart of Manhattan," says Guerlain CEO Gabrielle Saint-Genis. "It embodies our Art of Wellness, a legacy since 1850."
While beauty brands focus on the US, China's spending is expected to remain soft until 2027. However, experts believe the long-term outlook is promising for brands with a presence in both regions.
"The US beauty market continues to grow rapidly," Lepor says. "Brands that invest in scaling in both the US and China will benefit from these strategic initiatives."
And this is the part most people miss: the beauty divisions of luxury brands play a crucial role in driving revenue and engaging customers across categories.
So, as beauty brands navigate the US market, the question remains: can they sustain their growth and compete in this dynamic and diverse landscape?
