The news: US beauty demand remains strong, according to Ulta Beauty CEO Kecia Steelman. However, consumers are growing more value-focused, presenting an opportunity for retailers like Ulta that sell across price points—from mass to luxury—and have strong omnichannel capabilities.

Zoom out: Beauty is one of the most resilient categories in retail. That’s partly a function of the lipstick effect, in which shoppers are willing to spend on smaller luxuries despite broader economic pressures. But it also reflects how embedded beauty routines have become in consumers’ lives: US adults are more likely to cut spending on food and groceries than on beauty and personal care if facing financial difficulties, according to a December 2025 survey by EY-Parthenon.

At the same time, the growing intersection between beauty and wellness, along with the enduring popularity of “get ready with me” and other beauty content on TikTok, is creating new opportunities for brands and retailers.

• Ulta, Walmart, and Target are among the many retailers leaning into wellness to offset weaker spending in other categories.
• Ulta also recently launched a TikTok Shop storefront in a bid to acquire younger customers and capture a slice of the sizable beauty spending that is occurring on the platform.

Implications for retailers: Beauty demand may be resilient, but retailers can’t count on shoppers’ affinity for the category alone to deliver consistent growth. With more spending shifting to Amazon and TikTok Shop, the pressure is growing on the rest of the field to differentiate themselves—whether through brand assortments, in-store experiences, or omnichannel offerings—or partner with their competitors, as Ulta has done.