SoPost industry round up | Beauty and FMCG trends July 2025

They say time flies when you’re having fun. At SoPost, we seem to be having a blast, considering the pace at which this year is flying by! The same can absolutely be said about the industries we serve, which are always evolving to meet consumer demands and global economic shifts. July 2025 has been no exception, so we’re going to be taking a look at the beauty and FMCG trends and news stories that have shaped these sectors this month.

Beauty and FMCG trends July 2025 - what does good look like?

Across all regions, a few key themes have emerged as central to industry success this month:

• Companies are looking to balance innovation with established traditions, offering both premium and affordable options - crucial for winning over increasingly discerning consumers.
• Regulatory pressures - particularly across Europe - combined with heightened consumer awareness worldwide, are driving investment in sustainable packaging, indicating that clean beauty is no longer a niche, but a mainstream expectation.
• Digital channels continue to be the primary sales drivers, with channels like TikTok Shop and Amazon seeing immense growth. Social commerce, driven by impulse purchases via content, is now a global phenomenon.
• Consumers are more educated than ever, and are demanding products that deliver tangible results. Most regions are now seeing a surging interest in active ingredients in skincare, and functional benefits in FMCG products that support holistic wellbeing.
• AI and technology integrations continue to reign supreme. AI-powered personalization tools and virtual try-ons, through to smart analytics and point of sale, technology is truly transforming product development, consumer engagement and supply chain efficiency.

Regulation and renewed focus shaping key beauty and FMCG trends in Europe this July

Many brands in Europe are focused on enhancing their existing products through rebranding, targeted campaigns and the growing trend of “premiumization”, the aim of which is to provide more value to consumers (a decidedly strategic move as we enter the holiday season!). As consumer demands continue to shift towards quality and effectiveness, this approach is likely to resonate during the current economic climate.

July has also seen the drive for results-driven beauty continue across Europe. Consumers are actively seeking out products with potent active ingredients like AHAs, BHAs, hyaluronic acid and niacinamide to address specific skin issues - and even hair concerns. This extends to the FMCG sector, which is seeing increased prioritization of personal grooming, wellness and hygiene products - as well as natural, organic, functional and plant-based food and drink options.

Beauty and FMCG trends in July is also seeing a convergence of fashion and beauty, unisex fragrances in popularity: 

• More luxury fashion houses are strategically entering (or re-entering) the beauty space, leveraging their brand equity to tap into new consumer segments and create comprehensive lifestyle offerings.

• The fragrance market is seeing a notable shift towards gender neutral scents, following in the footsteps of industry pioneers like Tom Ford. There is also increased emphasis on olfactory experiences over traditional marketing, making product sampling a continued and growing go-to for the fragrance industry.

Major beauty and FMCG industry news in Europe, July 2025

The European Commission presented its Chemicals Industry Action Plan, aiming to bolster competitiveness and modernize the sector. This approach, including pragmatic amendments to the Cosmetics Regulation concerning CMR substances has been largely welcomed by the beauty industry, offering more predictability.

Beauty and FMGC brands have also published their H1 earnings:

• Galderma announced impressive net sales of US$2.45 billion for the first half of 2025 - a 12.2% year-on-year growth at constant currency.

• LVMH has had a resilient H1. While overall growth moderated, LVMH’s Perfumes and Cosmetics division remained robust - with Dior and Sephora driving resilience. Sephora in particular expanded its market share and showed strong revenue growth.

• Coty announced leadership changes, including the promotion of Jérôme Auvinet to Chief Information, Digital Innovation & Business Services Officer, signaling a stronger focus on digital transformation.
  
  
• L'Occitane Group reported net sales of €2.8 billion for the fiscal year ending March 2025 - an 11.7% increase at constant exchange rates. 

Major beauty and FMCG industry news in the UK, July 2025

The British Beauty Council’s Value of Beauty 2025 report was published this month, revealing the UK beauty and personal care sector contributed an impressive £30.4 billion to the UK economy in 2024 (a 9% increase from the previous year), outpacing the UK’s GDP growth fourfold. The industry directly employed 496,000 workers in 2024 (an 11% increase from 2023), but job growth is expected to slow in 2025.

Other news includes:

• Ulta Beauty acquired UK-based prestige retailer, Space NK, marketing its direct entry into the British market (and signaling major expansion)

• Victoria Beckham Beauty expanded its retail presence by launching at Space NK stores across the UK

• In its fiscal Q3 (ended May 31), Walgreens Boots Alliance reported a 7.2% sales increase, with its international segment (driven by Boots UK & Germany) growing 7.8%, largely due to beauty and wellness products.

• Superdrug created a new Chief Operating Officer role, promoting Simon Comins to streamline operations and drive further growth.

• Indian conglomerate Reliance Retail Ventures acquired a minority stake in UK-based skincare brand FaceGym, with plans to introduce it to the Indian market.

North America continues to lead in beauty and FMCG

Innovation, inclusivity and AI’s ongoing ascent continue to fuel the North American beauty and FMCG industries. Rapid innovation, a digitally immersed consumer base and a strong emphasis on personalization and inclusivity.

North America remains a significant contributor to the global beauty industry’s 7.8% value growth, with success being defined by blending innovation with traditional values. This means offering both luxury and affordable options and committing to sustainability, while ensuring scalability. E-commerce now accounts for 41% of all beauty and personal care sales in North America, with social commerce being particularly impactful - 68% of purchases are driven by impulse platforms like TikTok Shop.. 

The fragrance, bath and shower categories are leading growth and experiencing strong momentum across North America, reflecting a growing consumer focus on holistic body care and sensory experiences.

North American companies are continually being inspired by the K-Beauty influence, which is driving further product innovation. AI-powered personalization and AR tools (virtual try-ons, skin analyses) are now essential for enhancing consumer engagement, delivering tailored solutions that aim to compete with the Korean skincare industry.

Gen Z and millennials prioritize skincare over cosmetics, favoring brands that align with their values, such as inclusivity. Brands are, as such, increasingly addressing diverse skin tones and concerns, offering tailored solutions and emphasizing authenticity and representation in their marketing. Older generations maintain loyalty to traditional staples - such as make up - but do show interest in anti-aging and wellness products.

Indeed, there is a rising demand for products that support mental and emotional health, including functional ingredients like probiotics and adaptogens, which is reshaping the FMCG industry. 

Major beauty and FMCG industry news in North America, July 2025

Machael Burke was named Chairman and CEO of LVMH’s Americas division - a strategic move to bolster the luxury giant’s presence and navigate regional market complexities. Equally, three additional US states voted to mandate textured hair education in cosmetology schools - a significant step towards greater inclusivity and competence within professional beauty.

Other news from the beauty and FMCG industry in July includes:

• L'Oréal announced its half-year results, with like-for-like growth accelerating between Q1 and Q2. Crucially for North America, consumer products began to show early signs of recovery, particularly in makeup. Fragrances and haircare remained the fastest-growing categories globally.

• The INKEY List announced its full nationwide launch in all Ulta Beauty stores across the United States and Ulta.com, significantly expanding its accessibility to Norh American consumers.

• Skincare brand LANEIGE partnered with Baskin-Robbins to create a limited-edition Rainbow Sherbet lip Sleeping Mask, which was made exclusively available at Sephora this month.

• The Estée Lauder Companies appointed Brendan Riley to the newly created role of Senior Vice President of Global Communications, signaling a strategic focus on enhancing global messaging.

• Glossier, following its successful expansion into Sephora, has further broadened its channels by launching a TikTok Shop. This move capitalizes on TikTok Shop’s rapid growth as a major beauty retail platform in North America - particularly for Gen Z consumers.

• Kraft Heinz announced it exceeded quarterly revenue estimates, largely driven by U.S. demand as consumers continue to cook more affordable meals at home. This highlights the ongoing impact of economic factors on FMCG purchasing behaviour in North America.

Beauty and FMCG trends for the rest of 2025

July 2025 provides ample evidence of the period of significant adaptation and innovation being seen across the global beauty, fragrance, skincare and FMCG industries. Brands are increasingly leveraging technology, responding to shifting consumer demands and ongoing transparency. As far as the remainder of the year goes, it seems that beauty and FMCG trends will continue to focus on delivering value, personalized experiences and products that cater to holistic wellbeing in a market that is defined by ongoing shifts and changes in consumer demands.

To find out how your brand can take advantage of these beauty and FMCG trends for the remainder of the year - and into 2026 - through product sampling, get in touch with SoPost today.