Factors Shaping 2025 Brand & Hiring Strategy

With the election just a few days away and a relative halt on hiring, it will be interesting to see how the shifting trends in 2024 will shake out through the holiday season and shape brand strategy and hiring for 2025. According to NielsenIQ’s Mid-Year Update (all subsequent data through June 2024), the beauty industry showed impressive resilience amid economic pressures, with shifting trends reshaping consumer preferences and growth patterns. Inflation and rising prices have impacted growth across many categories, yet fragrance and bath/shower segments have shown exceptional strength. Beauty continues to thrive globally with notable growth of 10.5% in Europe and a 12.3% increase in the Asia-Pacific market.

In the US, E-commerce across all platforms accounts for 41% of total purchases. Fragrance sales are up 21.9%, driven by self-care rituals that have become a priority for many consumers. Indie beauty brands continue to rise, growing by 8.9%, as consumers seek unique, niche products with authentic stories. Wellness and clean beauty also remain in demand, aligning with the priorities of health-conscious and environmentally aware shoppers. Additionally, the appeal of beauty dupes, affordable alternatives to luxury items, has surged by 19.1%, resonating strongly with budget-conscious buyers who still value quality.

With a glut of options, celebrity beauty brands overall have seen a decline of 8.7% indicating that consumers may be moving away from celebrity endorsements. Social selling on platforms like TikTok has captured 6.2% of beauty e-commerce and is shaping purchasing decisions, particularly among Gen Z. Searches for specific product ingredients, such as sulfur (+108%) and AHAs (+85%), reflect the increased importance of ingredient transparency, as consumers research products that align with their skincare needs.

Brands that stay in tune with these shifts are poised to adapt successfully. We look forward to seeing how the election and this holiday season shapes Brand Strategy for 2025 and hiring into this strategy. The right talent can navigate a dynamic landscape and help a brand maintain their competitive edge in the years ahead!