Indepth: How tech-savvy, value-driven consumers are shaping beauty business in 2025

In 2025, the beauty and wellness industry is experiencing a transformation that blends cutting-edge technology, sustainability, and consumer consciousness like never before. The days of beauty being confined to makeup and wellness to gym memberships are behind us – today, skincare and biotech intersect, self-care is a lifestyle, and AI tailors beauty routines with uncanny precision.

Construction Invoice Receipt Template with a new generation of tech-savvy, values-driven consumers at the helm, brands are rapidly adapting to meet the growing demand for personalized, eco-conscious products and digital-first experiences. The lines between health, technology, and self-expression are increasingly blurred, and the industry is racing to keep pace with these changes.

In this article, Adgully explores the key trends reshaping the landscape of beauty and wellness in 2025 – from India’s e-commerce boom to the rise of hybrid skincare and the growing importance of sustainability. Let’s dive into the forces driving innovation and defining the future of the industry.

India’s Beauty Boom: How Ecommerce is Redefining the Market

India has emerged as the fastest-growing online beauty market globally, with e-commerce and quick commerce sales surging by 39% in value between June and November 2024, far outpacing the 3% growth in physical stores, according to a recent NielsenIQ report. This rapid shift reflects a fundamental change in consumer behaviour—one driven by a younger demographic, rising disposable incomes, and the growing influence of social media and digital-first beauty experiences.

The NielsenIQ study highlights that 17% of Indian consumers now purchase beauty products online, up from 13% a year ago, with India surpassing Brazil (27% online growth) in terms of acceleration. The market, now valued at $28 billion, is seeing increased traction for both global luxury brands like MAC, Clinique, and Dior, as well as mid-tier and mass players such as Lakme, L’Oréal, and Sugar—all leveraging platforms like Nykaa, Tira, Amazon, Myntra, Blinkit, and Zepto.

As quick commerce adoption rises, with platforms promising same-day or next-day deliveries, and clean beauty and ingredient-conscious shopping becoming dominant trends, brands are aggressively rethinking their strategies. With new-age players outpacing legacy brands through influencer-driven marketing, AI-powered personalization, and community-driven engagement, the competition is intensifying.

New-age brands are outpacing legacy players by leveraging influencer marketing, subscription-based models, and community-driven engagement, while digital ad spend has skyrocketed, overshadowing traditional media. Meanwhile, investors are betting big on biotech skincare, clean beauty, and wellness startups, signaling a market that’s not just growing—it’s transforming at an unprecedented pace.

Evolution of Beauty and Wellness in 2025: Insights from Industry Leaders

As the beauty and wellness industry continues to evolve, 2025 marks a significant shift towards sustainability, efficacy-driven formulations, and consumer consciousness. Key industry leaders share their perspectives on the defining trends and innovations shaping beauty, skincare, and wellness this year.

The Conscious Beauty Movement

Harmeet Singh, Chief Brand Officer, The Body Shop - Asia South, emphasizes the growing demand for ethical and sustainable beauty choices, “The future of beauty isn’t just about looking good—it’s about doing good. Consumers today are actively seeking brands that align with their values, prioritizing vegan formulations, supporting marginalized communities, and choosing planet-friendly packaging. Transparency will be key, with consumers expecting to know not just what’s in their products, but where those ingredients come from and how they impact people and the planet.”

Efficacy-led skincare is taking center stage, with plant-based alternatives like Edelweiss flower, Bakuchiol, and naturally derived Hyaluronic Acid replacing traditional ingredients. Meanwhile, packaging innovations are moving beyond recyclability, introducing compostable materials and refillable solutions as the new industry standard.

Ashutosh Valani, Co-founder, Renee Cosmetics, notes, “In 2025, the beauty and wellness industry will be all about personalization, sustainability, and technology. Consumers are now looking for products that are not only effective but also personalized to their unique needs, owing to AI-powered skin analysis and custom recommendations. Clean beauty is taking the spotlight with a preference for natural ingredients, and brands are prioritizing eco-friendly packaging. Wellness is becoming a big part of beauty, with more people combining skincare with mental and physical health practices. Inclusivity is key, with brands embracing diversity in their products and marketing, while advanced treatments and virtual consultations are making beauty more accessible.”

Digital-First Engagement and Accessibility

Chirag Jagwani, DGM – eCommerce, Fixderma, highlights the rise of convenience-driven skincare and digital shopping, “Beauty and wellness in 2025 are all about convenience, results, and accessibility. Consumers prefer high-performance, minimalist skincare that fits their lifestyle. D2C and marketplaces like Amazon, Flipkart, and Nykaa dominate the shopping space, while quick commerce platforms (Blinkit, Zepto, Swiggy Instamart) drive impulse and repeat purchases. Community-driven marketing, social commerce, and influencer-led recommendations are more influential than ever.”

The Rise of Hybrid Skincare and Personalization

Shankar Prasad, Founder & CEO, Plum, underscores the shift towards multi-functional beauty products, “Consumers are shifting away from overloaded routines and opting for minimal yet highly effective formulations. The convergence of science and makeup is defining new beauty standards, with key trends including:

• Skincare-first beauty, where long-term skin health is prioritized over temporary fixes.
• The growing preference for skin-friendly brightening ingredients like tranexamic acid over harsher actives.
• More men embracing skincare, focusing on oil control, hydration, and sun protection like never before.”

The Era of Expressive and High-Impact Beauty

Vidushi Goyal, Chief Marketing Officer, Swiss Beauty, reflects on how 2024 set the stage for bold beauty trends, which continue to evolve in 2025. She says, “Beauty in 2024 was all about bold expression, high-impact finishes, and multi-functional formulas. Holographic finishes, shimmer, and metallics took center stage. In 2025, this momentum continues with the dominance of:

• K-beauty influences, seen in lip oils, glossy tints, and ultra-lightweight textures.
• Hybrid skincare-makeup products like hydrating tints and breathable complexion formulas.
• An all-time high demand for high-shine, reflective finishes in eye makeup and dewy skin looks.”

Mind-First Beauty and Scientific Advancements

Malvika Jain, Founder & CEO, SEREKO, explores the deeper connection between mental well-being and skincare, “The link between mental health and skin health is stronger than ever. At SEREKO, we’ve championed this shift with NeuroCalm, a proprietary stress-reducing complex that counteracts the impact of stress and cortisol on skin health. Consumers are prioritizing holistic, results-driven solutions that balance external care with internal well-being.”

Some defining trends in 2025 include:

• Psychodermatology and the mind-skin connection influencing skincare choices.
• Hybrid and multi-functional skincare products offering hydration, repair, and treatment in one formula.
• A continued focus on ingredient transparency, with ceramides, peptides, and adaptogens leading efficacy-driven formulations.
• Digital-first consumer engagement, with brands leveraging hyper-personalized digital strategies and influencer-driven storytelling over traditional advertising.
• The future of beauty isn’t just about looking good—it’s about feeling good, doing good, and making a lasting impact on both people and the planet.

Are Consumers Preferring New-Age Brands Over Legacy Brands?

The beauty and wellness landscape is undergoing a transformation as modern consumers increasingly favor new-age brands over legacy brands. A combination of transparency, innovation, and value-driven engagement has fueled this shift. Industry leaders share their perspectives on what’s fueling this change and how brands—both old and new—are responding.

New-Age Appeal

“Today’s consumers favor brands that align with their values, offering personalization, transparency, and sustainability. Gen Z, in particular, seeks eco-friendly products, ethical sourcing, and inclusivity. New-age brands excel with seamless digital experiences and AI-driven recommendations. In response, legacy brands are evolving—embracing innovation, cleaner products, and stronger digital engagement to stay competitive,” says Ashutosh Valani of Renee Cosmetics.

Transparency, Community, and Agility Define the Shift

“Consumers today are highly informed, experimental, and value-driven. They are choosing brands that are transparent about ingredients, engage directly with their community, and launch trend-responsive products faster than legacy brands,” says Plum's Shankar Prasad. “Legacy brands are responding by acquiring digital-first startups and focusing on authentic, community-driven engagement.”

The Rise of Intentional Consumption

"It’s no longer about choosing between new-age brands and legacy brands—it’s about choosing brands that stand for something," explains Harmeet Singh of The Body Shop. “Consumers today prioritize ethical sourcing, sustainability, and transparency. They care less about a brand’s longevity and more about how it operates—whether it supports communities, reduces environmental impact, and delivers products that align with their values.”

Digital-First Approach and Real-Time Engagement

With digital engagement playing a crucial role in purchasing decisions, Fixderma’s Chirag Jagwani highlights how peer reviews and influencer recommendations hold more sway than traditional advertising. “Fast delivery, affordability, and availability on leading marketplaces and quick commerce platforms make new-age brands more appealing to today’s consumer.”

Innovation and Multi-Use Products as a Driving Force

“Today’s beauty buyers are trend-focused, digital-savvy, and looking for brands that speak their language,” states Vidushi Goyal of Swiss Beauty. “New-age brands offer agility, innovation, and community-driven experiences. The shift isn’t just about formulas—it’s about how beauty feels and functions. A lip product isn’t just a lipstick anymore; it’s a hydrating oil, a soft tint, and a glossy finish all in one. Consumers want products that adapt to their lifestyle.”

Purpose-Driven Solutions and Holistic Beauty

The demand for clinically validated and results-driven products is reshaping the industry. SEREKO's Malvika Jain elaborates, “Consumers in 2025 are gravitating toward brands that offer purpose-driven solutions and engage on a deeper level. Unlike legacy brands that focus on mass appeal, digital-first brands build trust through community engagement and personalized experiences.”

She further adds, “Modern consumers prioritize clean beauty, ethical sourcing, and cruelty-free practices. New-age brands lead this movement with eco-conscious formulations, mindful packaging, and transparent ingredient sourcing. The shift in ad spend and marketing strategy has significantly influenced purchasing behavior, with new-age brands leveraging social commerce, influencer credibility, and real-time consumer feedback rather than traditional advertising.”

“Modern beauty is about experience, not just products. Whether it’s sensorial formulations, hybrid skincare solutions, or seamless online-to-offline brand experiences, new-age brands are pushing boundaries. SEREKO, for instance, integrates mind-first skincare into product formulations, offering a holistic experience that extends beyond topical application,” Jain shares.

As consumer expectations continue to evolve, brands—both legacy and new-age—must adapt by fostering authenticity, transparency, and meaningful engagement. The future belongs to those who can innovate while staying true to their values.

The Rise of Influencers & Digital-First Marketing

In today’s dynamic beauty and wellness industry, digital-first marketing and influencer collaborations have become pivotal in shaping consumer behavior. With authenticity and relatability at the forefront, brands are leveraging digital platforms to foster deeper connections with their audience. Content creators and industry experts weigh in on this transformation and the shifting balance of ad spend from traditional to digital.

Influencers: The New-Age Brand Connectors

According to digital content creator Shivangi Sharma, “Influencers have made brand connections feel more authentic. They’re like digital friends sharing real experiences, which people relate to way more than traditional ads. With social media booming, digital marketing helps brands reach the right audience, focusing on genuine connections rather than just selling products.”

Digital content creator Anmol Dua added here, “The relatability and authenticity in influencer partnerships have curated communities that are loyalists. Some have followed influencers from the beginning, creating a trust factor that drives sales. This trust is essential for brands to establish their key messaging and build lasting relationships with their audience. A huge chunk of traditional ad spend is now redirected towards digital platforms because results are quantifiable and measurable.”

Industry Leaders on the Digital Shift

The Body Shop’s Harmeet Singh notes, “The way beauty brands connect with consumers has fundamentally shifted—authenticity and purpose now take precedence over polished perfection. Influencers have evolved from aspirational figures to trusted advisors, shaping meaningful conversations around beauty, ethics, and self-expression. Digital platforms now lead ad spend, allowing brands to engage in two-way conversations rather than just pushing messages out.”

Chirag Jagwani of Fixderma emphasizes, “Marketing today is about building trust, not just selling products. Over 80% of ad budgets now go to digital, with brands investing in social media, video commerce, and performance marketing. Influencers, especially dermatologists and skincare experts, play a major role in product discovery and education.”

Shankar Prasad, Founder & CEO, Plum, points out, “Influencers have evolved from endorsers to educators and co-creators. The biggest shifts include:

• The dominance of science-backed content creators (‘skinfluencers’) over traditional celebrity endorsements.
• Social commerce and live shopping becoming key discovery platforms.
• AI-driven personalized content engaging individuals with tailored recommendations. As a result, 80-85% of ad spends are now digital, with a significant focus on influencer partnerships and immersive brand storytelling.”

Ashutosh Valani Co-founder, Renee Cosmetics, says, “Influencers and digital-first marketing have completely transformed how beauty and wellness brands connect with consumers. Instead of relying on traditional, glossy ads, brands now turn to authentic, relatable content shared by influencers who have built trusted relationships with their audiences. Consumers feel like they're getting advice from a friend rather than a brand, making it easier to build trust and loyalty. This shift is reflected in ad spending trends, with over 80% of ad budgets in industries like tech, retail, and consumer goods now directed toward digital media. Traditional channels are taking a backseat, as brands recognize the power of personalized, interactive online marketing.”

Vidushi Goyal, Chief Marketing Officer, Swiss Beauty, notes, “Social media has completely reshaped how beauty brands connect with consumers. It’s no longer just about selling a product—it’s about creating a moment. A single viral makeup trend can turn an under-the-radar formula into a cult favourite overnight. With nearly XX% of our ad spend now digital, influencers are the new tastemakers, shaping purchasing decisions through authentic product demos, swatches, and trend-driven content.”

As social commerce, AI-driven personalization, and immersive content experiences continue to rise, the future of beauty marketing is undoubtedly digital-first.

Consumers Spending on Beauty Making Smarter Choices

In 2025, consumer spending patterns in the beauty and wellness sector reflect a profound shift in values, with individuals now prioritizing self-care as an essential part of their daily routines.

Harmeet Singh of The Body Shop shares that beauty and wellness are no longer seen as indulgences but are integral to personal well-being. Consumers are becoming more selective with their purchases, looking for products that offer high performance while aligning with their values. “Consumers are increasingly willing to invest in skincare that includes natural, high-performing ingredients like Edelweiss and Bakuchiol,” he notes, emphasizing the growing demand for products that are both effective and ethically produced.

The shift toward mindful investment is evident, with skincare leading the way in growth. Singh highlights that sustainably sourced ingredients and high-efficacy formulations are driving the demand. Haircare, particularly solutions aimed at scalp health and repair, is also seeing a surge. “The future of beauty spending is about making thoughtful decisions, where each purchase reflects personal values,” he adds.

Chirag Jagwani of Fixderma echoes this sentiment, explaining that consumers are now willing to spend more on skincare, provided they see real value. He observes significant growth in categories like moisturizers, sunscreens, and serums. Additionally, the rise of quick commerce has transformed shopping behaviour, making beauty products as accessible as groceries. Jagwani also points out that subscriptions and loyalty programs are gaining traction, keeping consumers engaged with brands and encouraging repeat purchases. “Consumers are looking for targeted solutions over generic products. They want specific results, like barrier repair or brightening, rather than a one-size-fits-all approach,” he explains.

Shankar Prasad of Plum delves into how consumer priorities have evolved. “Consumers today are more selective but willing to spend on what truly delivers results,” he says. There is a shift from hoarding multiple products to investing in dermatologist-approved, clinically tested formulations that combine makeup with skincare. Prasad emphasizes that categories such as makeup and men's skincare are seeing unexpected growth, driven by a more educated consumer base and innovative offerings. “Subscription models and loyalty-driven pricing strategies are reshaping how people buy beauty, leading to higher long-term spending,” he observes.

Vidushi Goyal of Swiss Beauty notes a shift towards high-impact, versatile products that deliver immediate results. “Consumers are investing in multi-use products like long-lasting lip tints, ultra-reflective highlighters, and eyeshadows that change with the light,” she says. Hybrid formulas, where skincare meets makeup, are particularly popular. Products like hydrating lip oils and dewy-finish tints are among the top contenders in the growing beauty market. Goyal points out that the demand for shimmer and high-shine finishes indicates that glow is no longer reserved for special occasions—it’s now an everyday necessity.

Digital content creator Shivangi Sharma adds her perspective, explaining that for today’s consumers, spending more on beauty products is justified if they feel the product is worth the investment. “It’s not just about buying products anymore; it’s about investing in yourself,” she states. Skincare has become a top priority, largely due to the awareness social media has created about self-care and the importance of quality ingredients. Sharma’s insight into the growing consumer demand for products that prioritize quality over quantity highlights a trend toward more intentional and informed purchasing decisions in the beauty industry.

Winning Strategies for Brands in 2025: Insights from Industry Leaders

In an industry where personalization, sustainability, and tech-driven innovation are quickly becoming key differentiators, brands are evolving to meet the demands of increasingly conscious consumers. Beauty is no longer just about the products—it’s about the broader impact, responsibility, and connection a brand offers.

Harmeet Singh of Body Shop, points out the following strategies:

1. Sustainability at the Core, Not an Afterthought

Brands must deliver transparency and demonstrate how their actions help preserve the planet. “Sustainability isn’t just a trend—it’s a responsibility,” emphasises Harmeet Singh. She stresses on the importance of ethical sourcing, carbon-neutral operations, and transparency in sustainability efforts. It’s no longer about meeting expectations; it’s about redefining them and making sustainability an intrinsic part of the brand.

2. Beauty That’s Personal, Purposeful, and Inclusive

“Consumers are looking for beauty that is purposeful—products that address real-life problems and care for both people and the planet,” states Singh. Brands are now shifting from a ‘one-size-fits-all’ approach to more individualized products, creating a personalized beauty experience that resonates with each consumer. High-performance, vegan ingredients, and inclusivity are at the forefront of this shift.

3. Digital-First, Community-Led Engagement

“Brands must create genuine connections with their communities—social media, influencers, and digital experiences are integral in how beauty brands engage with consumers today," explains Singh. Brands are focusing on creating immersive digital experiences, engaging with consumers directly, and encouraging their participation in shaping the brand narrative. This shift to a more collaborative and transparent model of interaction is a significant part of the industry's evolution.

According to Chirag Jagwani of Fixderma, “Success lies in being everywhere the consumer shops—D2C, Amazon, Flipkart, Nykaa, and quick commerce. Brands that focus on efficacy, transparency, and personalization will stand out. Community engagement, influencer collaborations, and social commerce will continue to drive growth. Speed and convenience matter, but strong brand differentiation will be the key to long-term success.”

Sharing his strategies, Shankar Prasad of Plum says, “For brands to win in 2025 and beyond, they must focus on:

• Tech-powered personalization: Leveraging AI-driven recommendations, AR skin analysis, and data-backed skincare solutions.
• Sustainability: Committing to carbon-neutral processes, refillable packaging, and ethical sourcing as a core strategy.
• Community-first engagement: Listening to consumers, co-creating with them, and building authentic relationships.”

Prasad added, “Brands that innovate with purpose and stay true to their core will be the ones that succeed.”

Vidushi Goyal of Swiss Beauty notes, “As trends rapidly evolve, brands must stay competitive by focusing on three key pillars: Innovation, Inclusivity, and Digital-First Experiences.

• Innovation Beyond the Basics: Today’s consumers demand high-performance, multifunctional products. Consumers are no longer just looking for makeup; they want products that fit seamlessly into their lives while offering additional benefits.
• Beauty for Every Skin, Every Story: Inclusivity is at the heart of Swiss Beauty’s strategy. The demand for shade-inclusive and universally flattering products is growing, and we are responding by creating formulas that are friendly for all skin tones and types.
• Power of Digital & Social-First Strategies: Digital transformation is critical. Short-form videos, influencer storytelling, and immersive shopping experiences are driving engagement.”

Malvika Jain, SEREKO, concludes, “As the demand for wellness-conscious skincare grows, SEREKO is taking a holistic approach by integrating emotional well-being into skincare solutions. In 2025, brands must combine personalized experiences with sustainability and cutting-edge technology to remain competitive.”

“Consumers want products that not only improve their skin but also promote emotional well-being,” adds Jain. This unique combination of emotional and physical care, paired with sustainable, ethical formulations, sets SEREKO apart in an industry that is rapidly shifting toward holistic wellness.

The beauty and personal care industry is witnessing a paradigm shift where sustainability, personalization, and technology-driven innovation are not just buzzwords but essential strategies for success. From creating purpose-driven beauty products to engaging with consumers through community-first digital strategies, brands must evolve and adapt to stay ahead. “It’s about going beyond beauty—it’s about making a real impact,” says Harmeet Singh of The Body Shop. In 2025 and beyond, the brands that will thrive are those that innovate with purpose, stay connected to their communities, and align with consumer values.