DTC Beauty Brands Will Outpace Established Luxury Names Online in 2025, Report

The pristine beauty counters of luxury department stores are becoming relics of a bygone era. As shoppers migrate online in record numbers, the beauty industry is experiencing a seismic power shift that few could have predicted just five years ago. Direct-to-consumer (DTC) beauty brands, born in the digital realm, are rapidly gaining ground on established luxury names and are positioned to overtake them by 2025.

We’ve been tracking this transformation closely, and the numbers tell a compelling story. According to a new NIQ report, the global beauty industry has grown by 7% in the past year alone, but this growth hasn’t been evenly distributed. E-commerce now drives over 50% of global beauty sales, completely reshaping the competitive landscape.

Look at China, where online channels account for a staggering 87% of hair and skincare sales. The U.S. isn’t far behind, with e-commerce exceeding in-store purchases for 41% of all beauty and…