SoPost industry round up | November 2025 | efficacy, AI & ethics

The beauty and FMCG sectors are closing out 2025 in a state of creative tension. Across every global market, brand leaders are scrambling to capture the consumer’s unwavering appetite for efficacy and uncompromised luxury, while simultaneously satisfying the non-negotiable demand for ethical, sustainable transparency.

Consumer behaviors and spending is shifting. They are making high-value investments in clinically proven products, while aggressively seeking savings on all other essentials. This shift is compelling brand leaders to redefine their value propositions amid continued, robust expansion, with North America posting strong value growth (9.6%) and Asia-Pacific leading globally with 14.3% annual growth.

Clinically proven efficacy is essential for the uncompromising consumer
Consumers are increasingly hyper-rational and shopping with extreme caution and calculation. As we’ve seen throughout the year, they’re moving away from traditional brand loyalty, which in turn is causing the usually reliable middle tier of the market to steadily shrink. Instead, we’re seeing that spending is fiercely polarizing at two extremes:

• Products promising uncompromising prestige
• Those offering ruthless, efficient value

As such, consumers are demanding efficacy, and investing in proven outcomes, and the prestige sector is capitalizing on this by focusing exclusively on clinically validated products. This is accelerating the dominance of dermocosmetics and specialized doctor brands like La Roche-Posay, which was named a top clinical brand for 2025. 

This demand for measurable authority is why brands in the clinical space are now cementing themselves as market leaders. Indeed, this trend permeates every beauty segment, including fragrance. This category has continued stellar growth throughout 2025 and successfully leverages digital discovery to position personalized scents as an accessible luxury. This proves that experiential value remains paramount.

Conversely, in essential FMCG, intense competition and demand from consumers are driving the widespread adoption of skinification - the migration of advanced active ingredients from skincare into categories like bath and shower, and haircare. This move justifies a small premium and dissolves traditional category boundaries, which forces every product from body wash to shampoo to offer scientific, functional benefits.

Major mergers and acquisitions are reshaping FMCG
2025 has been a major year for mergers and acquisitions, and signals a definitive industry repositioning towards two clear priorities:

• Science-backed prestige
• Digitally-native niche loyalty

L’Oréal’s consolidation of clinical luxury has been the definitive hallmark movement of the year. The group’s acquisition of a majority stake in the premium clinical skincare brand Medik8, paired with October’s alliance to acquire the House of Creed and secure 50-year beauty and fragrance licenses for iconic houses Bottega Veneta and Gucci from Kering, creates an unparalleled, authoritative luxury portfolio.

This strategic move positions L’Oréal as the dominant figure in the high-end, science-meets-luxury spectrum, allowing them to leverage heritage and scientific credibility simultaneously. This directly aligns with consumer preferences, and indeed, is supported by L’Oréal’s high-tech nature strategy, as they continue to roll-out biotech-derived “breakthrough” ingredients.

In contrast, Unilever’s pursuit of vertical agility is equally strategic. The brand’s acquisition of the men’s digitally-native grooming brand, Dr. Squatch, demonstrates a commitment to capturing high-growth, purpose-driven verticals. This move updates Unilever’s offering in the premium men’s personal care segment, while granting them immediate access to a social-first marketing playbook and a loyal consumer following that major CPGs often struggle to build organically. This proves that acquiring culturally relevant, community-focused brands is a necessary strategic hedge against slower growth in traditional categories.

AI, wellness and radical transparency are being driven by consumer demands
Throughout this year, we’ve been tracking the dramatic shift in consumer expectations. Alongside efficacy, they are now demanding both seamless technological experiences and non-negotiable ethical alignment from brands simultaneously.

Artificial Intelligence has transitioned from a marketing tool to an imperative in the formulation of products. Consumers expect hyper-customization and the ability to receive product recommendations that dynamically adjust based on environmental factors, such as humidity, for example. This demand for data-driven precision is also fueling the growth of sophisticated virtual retail experiences that blend digital convenience with high-touch sensory service.

Simultaneously, beauty is now firmly viewed as a long-term investment in health and longevity. Consumers globally are prioritizing preventative beauty solutions, rather than looking at ‘anti-aging’ which is driving the merging of the healthcare and aesthetics industries. Indeed, the so-called Ozempic Effect further accelerates this shift, creating the demand for solutions to volume loss and skin tightening.

Crucially, the focus on ingredients, once central to the clean beauty movement, is now proving insufficient for consumers. The efficacy-led clean beauty trend was an ethical low bar focused on stripping out ingredients deemed toxic or harmful, but now, consumers are focused on how brands actively contribute to environmental health and a positive social impact. It’s crucial for brands to meet this demand, as 65% of global consumers now factor brand sustainability policies into their purchasing decisions, highlighting that consumers view ethical contribution as a new measure of product efficacy.

K-beauty & biotech are accelerating global innovation - defining the next product cycle
Innovation in November has been driven by the continued globalization of Asian beauty trends and a focus on increasingly sophisticated ingredient science. The rather aggressive global expansion of K-beauty brands confirms that Asian beauty trends are no longer fleeting influences, but a fundamental and structural force that’s driving global product cycles. This validates consumer preferences for social media discovery, followed by an authentic, physical product experience.

In terms of new product launches this November, the skin-first hybrid trend has been underscored (a few times!). Dua Lipa launched her debut skincare brand in partnership with Augustinus Bader. This leverages proven scientific technology for what is being dubbed Dua Lipa’s “everyday essentials”. 

Similarly, makeup launches like Patrick Ta Beauty’s Major Dimension Essential Artistry Edit emphasize that sheer, dewy color and multi-functional formulas infused with ingredients like hyaluronic acid caters directly to the minimalist, health-focused consumer.

To secure success in the closing months of 2025, brands must successfully integrate two things in parallel: technology and science. Being able to do so will ensure brands can deliver on consumer demands and truly their deep desire for holistic, planetary well-being. This alignment will ensure brands will achieve consumer loyalty in 2026.