Global Beauty Ecosystem, in a Structural Transition Towards a New Balance
In 2025, the global beauty industry has moved past its rapid growth phase and entered a wave of more complex changes. Now, changes in technology, consumers, regulations, and leadership are happening all at once, leading to restructuring. We explored how to understand this gigantic framework through the annual white paper released by Beautystreams.
Shift from Brand-Centric to Enterprise-Driven Structure
The first change in the global beauty market in 2025 is in the business landscape. An emblematic case is China's premium beauty group YSUAPAI acquiring the traditional French skincare brand Payot. They have moved beyond simply consuming products to becoming brand owners and directing the brand's path.
"Chinese companies tend to integrate prestige assets into their long-term strategic portfolios, rather than viewing them as mere consumer items."
- Sejin Hwang, Beautystreams Korea PR Director
Meanwhile, global companies centered in North America are also changing their strategies. Due to tariffs and policy changes, they are strengthening their production and R&D bases in the US, with experienced leaders being placed at the forefront. This reflects a will to rebuild a sustainable profit model in response to the new structure, rather than just expanding presence regionally.
Beyond Gen Z, Aiming for Alpha Gen in the Beauty Introduction Stage
The main consumer group in the beauty industry is now the Alpha Generation. As the age group encountering consumption lowers, strategies for tailored products for this generation are accelerating. This movement expands into detailed areas like nails, skincare, and brow products that combine playfulness with safety, rather than being mini versions of adult products.
The habit of considering ingredients from the product planning stage is becoming crucial for forming brand loyalty and securing market dominance. This generation is growing into a precise consumer group that considers safety, play elements, and environmental issues from the first point of contact with the product.
Technological Advancement Expanding from Formulations to Devices
Beauty technology has entered a significant transition phase. It features not only the application of AI-based technology but also expansion into devices and hardware. A representative example is the electronic deodorant that uses bio plasma technology. Instead of masking odors, it directly eliminates bacteria using reactive oxygen, showing the evolution of beauty products into scientific solutions.
"Previously confined to physical formulation improvements, there is now a structural model emerging that aims to address the problem itself with a technological approach."
- Sejin Hwang, Beautystreams Korea PR Director
This technological application is expected to continue expanding across skin diagnostics, personalized product recommendations, and home care devices in general. Consequently, beauty is progressively becoming an area of 'solutions' rather than just 'products'.
Ingredient Change: Opening an Era of Regulatory Responsiveness
2025 is also the year when ingredient change due to issues with sunscreens has come to the fore. The UV filter market faced consumer confusion with WHO's assessments, some recall situations, and mixed testing standards. Especially cases that were introduced as mineral sunscreens but actually contained chemical boosters have affected trust.
In this context, the introduction of testing methods that evaluate both SPF and UVA together is leading brands to plan products on a foundation of regulatory compliance. Also, the concept of longevity has extended from traditional skincare to the scalp and hair, with molecular level ingredient research actively being conducted.
Packaging: Now More Than a Part of the Product
In 2025, paper packaging, once noted as a plastic alternative, has evolved significantly. It's not just a means symbolizing eco-friendliness but is growing into a technological structure capable of implementing twist, stick, and pump forms. Particularly, with applicators utilizing the precision of medical devices, packaging itself is becoming a pillar of beauty innovation.
As a result, consumers can gauge a brand's philosophy and product management system's level just by observing the packaging structure. What used to be mere wrapping now serves as a medium that encapsulates both function and message.
K-Beauty: Not a Trend, But a Structural Ecosystem
K-Beauty is no longer an industry reliant on trends or short-term popularity. The report emphasized that the unique properties of Korean ingredients and global retail expansion have aligned, signaling the start of the second wave of 'K-Beauty.' It's not just about routine exports; a sophisticated retail structure based on inherent efficacy is powering new growth.
"K-Beauty, which used to follow trends, is now elevated to the level of exporting its unique ecosystem to the global market."
- Sejin Hwang, Beautystreams Korea PR Director
This involves not just sending products but exporting an entire system encompassing planning, ingredients, selling, and consumer touchpoints, which holds significant importance.
Social Media Driving a New Consumption Paradigm
Character-based content spread across TikTok and Instagram is adding new hues to beauty trends. Notably, styles like 'Labubu Makeup,' extravagant and fantastical, offered a glimpse into aesthetic exploration beyond reality.
Simultaneously, 'dupe' content that compares ingredients or textures for effectiveness has gained popularity. Whereas brand names were once the primary selection criteria, rationality and evidence are now at the center of consumption. Content led by creators is expected to continue significantly influencing product purchase decisions.
Conclusion
The year 2025 marked a transition in which the global beauty industry wrapped up an era of acceleration and began adjustments. It is a time when brands must evolve based on structure, direction, and consumer understanding rather than outward growth, and this change is now a matter of survival rather than choice.
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