Nearly half of beauty consumers now rely on artificial intelligence for product recommendations, according to the 2026 Beauty Reset report from CEW UK and consumer intelligence company NielsenIQ.
The report highlights a beauty industry shaped by constrained consumer spending, the growing dominance of digital retail and the rapid adoption of generative AI in product discovery.
While much of the research focuses on the wider consumer beauty market, the findings offer valuable insights for professional beauty salons, spas and independent businesses navigating the changing landscape.
Constrained spending creates a polarised beauty market
Economic pressure remains one of the biggest forces shaping the beauty sector in 2026.
The report found that only 17% of consumers feel able to spend freely, as rising costs for essentials such as food, housing and utilities continue to affect disposable income.
As a result, the market is becoming increasingly polarised, creating what researchers describe as a “K-shaped” economy.
Growth is occurring at two extremes:
- Consumers prioritising affordability and value
- Consumers continuing to invest in premium, high-performance luxury products
For salons and spas, this shift means pricing strategies and service menus must cater to both groups.
Entry-level or express treatments can attract price-conscious clients, while results-focused premium treatments – such as advanced facials or body therapies – may appeal to customers still willing to invest in self-care.
Clear communication of treatment results and value will be key to retaining both segments.
Consumers are moving towards “radical simplicity”
The report also highlights a growing shift away from complex beauty routines.
Instead of multi-step regimens, many consumers are choosing simpler routines built around fewer, high-performing products.
Key findings include:
- 52% of global consumers are willing to pay more for products that save time or simplify tasks
- Among Gen Z, this rises to 62%
- 33% of consumers say recent years have made them realise that “less is more”
Innovation is increasingly focused on multi-functional or hybrid products, particularly makeup that combines cosmetic and skincare benefits.
For beauty professionals, this trend opens opportunities in both treatments and retail.
Streamlined treatment protocols or results-focused express services may appeal to time-pressed clients. Meanwhile, multi-functional retail products positioned as routine simplifiers can command higher margins.
In this environment, careful product curation and expert guidance become key competitive advantages.
Digital and social commerce continue to drive growth
Online channels are now significantly outpacing physical retail across the beauty sector.
In the UK, the report shows online beauty sales growing at 9%, compared with 4% growth offline.
Amazon has become the largest online beauty retailer, with 60% of online beauty shoppers having purchased products from the platform.
Meanwhile, TikTok Shop has emerged as the second-largest beauty retailer in the UK, highlighting the growing influence of social commerce.
For professional beauty businesses, the data underscores the importance of strengthening digital channels, including:
- Integrated e-commerce platforms
- Click-and-collect or local delivery services
- Educational and product-led content on social platforms
While online giants dominate retail volume, salons and spas still hold a key advantage through expert recommendations, personalised consultations and treatment-based product demonstrations.
AI is transforming how consumers discover beauty products
One of the most significant changes highlighted in the report is the growing role of generative AI in beauty discovery.
Researchers found that 49% of consumers already receive beauty product recommendations from AI tools, such as ChatGPT.
Unlike traditional search engines, AI assistants often present users with just a handful of recommended products, dramatically changing how brands gain visibility online.
The report notes that when consumers ask AI platforms for product recommendations, responses often feature only a small number of suggested options.
This shift means businesses must think beyond traditional SEO.
Instead, websites and product pages should be optimised for AI-driven discovery, sometimes referred to as Answer Engine Optimisation (AEO).
For salons and skincare brands, this may include:
- Detailed product descriptions outlining benefits, ingredients and results
- Clear information about skin types and concerns
- Educational blog content that demonstrates expertise
- Structured FAQ sections that improve AI readability
Businesses that position themselves as trusted authorities in skincare and beauty advice may have a greater chance of appearing in AI-generated recommendations.
K-Beauty continues its global expansion
The report also highlights the growing influence of Korean beauty innovation.
K-Beauty products have seen 51% value growth compared with 2024, and now represent 8% of total skincare value in UK e-commerce.
In the United States, Korean cosmetics sales grew 60% last year, signalling further expansion into Western markets.
For salons and spas, this global trend could create opportunities to introduce K-Beauty-inspired approaches, such as:
- Skin barrier-focused treatments
- Layered skincare protocols
- Glow-enhancing facial techniques
Retailing innovative Korean skincare brands and educating clients about ingredient technology could also help businesses differentiate themselves.
Science, value and digital visibility will define the future of beauty
According to the report, the brands most likely to succeed in the coming years will be those that:
- Demonstrate science-backed efficacy
- Optimise for AI-driven discovery
- Offer multi-benefit products that save time and money
- Remain culturally relevant in a globalised beauty market
Sallie Berkerey, managing director of CEW UK, said the next phase of the industry will reward brands that can clearly demonstrate their value.
“The future of beauty belongs to brands that can prove their value scientifically, digitally and culturally,” she said.
For professional beauty businesses, the message is clear: those that combine expert results, digital visibility and curated product offerings will be best positioned to succeed in an increasingly polarised market.
