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Cosmetics and beauty make up a nearly $100 billion industry in the US, and next year more than one-fifth of those sales will come from ecommerce, according to our forecasts. In order to win over beauty shoppers, and Gen Z ones in particular, brands need to pay close attention to where their digital ad dollars go. Here are five charts to help you out.

The trend: Food manufacturers are pledging to remove artificial dyes from their products amid pressure from US Health Secretary Robert F. Kennedy Jr. and the Make America Healthy Again (MAHA) movement. Kraft Heinz said it would phase out artificial coloring in products sold in the US by 2027. General Mills quickly followed, announcing that it would eliminate artificial dyes across its full US portfolio by 2027, and remove them from all cereals and foods served in K-12 schools by next summer. Both Nestl茅 and Conagra are joining the party. Nestl茅 pledged to 鈥渇ully eliminate [food, drug, and cosmetic dye] colors in its US food and beverage portfolio by mid-2026,鈥� and Conagra will stop using such dyes in its frozen foods by year-end, and in all products by the end of 2027. Our take: For most companies, removing artificial dyes from their product lineups is a fairly easy lift, as many have already done so in Europe. It鈥檚 also increasingly a necessary move to prevent private labels from encroaching further on their turf, as more retailers launch 鈥渇ree from鈥� lines and pledge to remove ingredients like aspartame and high-fructose corn syrup from their store brands.

Physical stores matter most for driving awareness. But online, social media platforms outrank multibrand retailers鈥� digital channels in driving product discovery, with the most pronounced impact among Gen Z shoppers.

Consumers are reluctant to curb beauty spending: Many are turning to the category for solace amid uncertainty, or see it as an essential purchase.

Fewer than a third of US shoppers turn to department stores鈥� websites (31%) or brick-and-mortar locations (24%) when conducting beauty research, according to a May survey conducted by PowerReviews. In contrast, 71% turn to a specialty retailer鈥檚 website when researching new products.

The news: TikTok tweens and teens who make popular 鈥淕et ready with me鈥� skincare routine videos may be harming their skin. The takeaway: Amid the closer social media scrutiny, skincare health brands should be clear about products that are not made for young skin. Social media teams need to be aware and proactive when interacting with tween and teen content creators.

Despite political pressure, McDonald鈥檚 is standing by its commitment to inclusion. While it recently replaced 鈥淒EI鈥� language with 鈥渋nclusion,鈥� its initiatives remain intact, per Bloomberg. That contrasts with brands like Target, Nike, and JPMorgan Chase, which have scaled back DEI and climate efforts amid conservative backlash. McDonald鈥檚 cosmetic rebranding reflects a strategic calculation: investing in programs it views as beneficial for business and essential to long-term brand equity, especially with key demographics. If it avoids major backlash, McDonald鈥檚 could offer a model for other brands weighing how to uphold values while managing political and reputational risk.

Among US beauty shoppers of all ages, beauty and personal care shoppers are most likely to buy in-stores.

Consumers' definition of value is evolving as they demand not just the lowest prices, but quality and convenience too. Gen Z beauty shoppers prioritize innovation and sustainability over price, grocery shoppers seek high-quality products at lower prices, and high fees deter online purchases. Loyalty programs should be tailored to offer consumers the kind of rewards they want most, but not at the expense of brand identity. Here are five key stats to help brands understand what consumers value and stay competitive.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss why beauty is doing so much better than the rest of retail, how we've seen the "lipstick effect" play out, and how beauty shopping habits are changing. Then, for "Pop-Up Rankings," we rank our top four beauty brand marketing strategies other retailers can learn from. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Carina Perkins.

Some 22% of beauty retail sales worldwide will take place online this year, the most of any sales channel, per McKinsey. Physical specialty stores, such as Sephora and Ulta Beauty, will come in a close second (20%), while department stores will rank last (8%).

This week, beauty buyers take action on texts, influencers have indirect influence, and podcast fandoms benefit brands.

Est茅e Lauder partners with India鈥檚 government to boost local beauty brands: The company is the latest to invest in the country as interest in premium beauty soars.

Whether brands are aligning their product with comfort food, launching fragrances, or prioritizing scent in their retail spaces, marketers are embracing multisensory experiences as another way to stand out in the digital noise.

Our take: Tariffs are expected to drive up prices, prompting consumers to adjust their shopping habits by cutting back on discretionary spending and trading down to lower-cost options. For example, 38% of beauty shoppers are buying fewer products, and 35% are opting for less expensive items, according to Tinuiti.

Ulta lost beauty market share for the first time in 2024: The retailer is relying on a new marketplace, enhanced omnichannel experiences, and international expansion to recover sales.

In April, Walmart led the retail rankings thanks to its advanced grid-based delivery system and an elevated in-store beauty experience. Amazon followed closely with the testing of a new AI-powered 鈥淏uy For Me鈥� feature designed to simplify purchases. Meanwhile, Temu and Shein adjusted their pricing strategies due to rising import costs, risking their low-price appeal. Here are the eight most interesting retailers and brands from last month, as ranked on our 鈥淏ehind the Numbers鈥� podcast.

Global gains power L鈥橭r茅al past expectations as US market cools: CEO Nicolas Hieronimus flagged slowing beauty demand and US retailer constraints but noted the brand is well positioned to handle tariff-driven disruptions.