An interesting shift in consumer behavior is emerging in today’s beauty market.
As economic uncertainty continues, consumers are weighing product prices more carefully against the value they receive. Does this mean that demand in the beauty market is simply shifting toward lower-priced products?
The market tells a somewhat different story.
In the first half of 2026, U.S. prestige beauty sales increased by 7% year over year to $17.1 billion. During the same period, mass beauty sales also grew by 7%, reaching $39.2 billion. In other words, beauty segments at different price points grew simultaneously.
NIQ likewise identifies “Premium and value, side by side” as one of the defining characteristics of the global beauty market in 2026. This suggests that current beauty purchasing behavior cannot be explained simply as a shift toward either lower-priced or premium products.
So, why do increasingly price-conscious consumers continue to choose premium products?
Expectations Are Rising Even at Accessible Price Points
Affordability remains an important consideration when choosing a product. However, a low price alone is no longer enough.
Consumers increasingly expect both product performance and a satisfying user experience, even at accessible price points.
In the U.S. skincare market, masstige brands that offer features associated with premium products at more accessible prices posted double-digit growth.
This shift can also be seen in Korea.
In its 2026 beauty market analysis, McKinsey highlighted Daiso’s beauty business as a notable example. Rather than simply selling existing products at lower prices, some brands are developing separate products or lines with formulas and packaging tailored to Daiso’s price range.
According to McKinsey, Daiso’s beauty sales grew by 70% in 2025 and by 30% year over year in January 2026.
This shows that even at accessible price points, brands need to offer more than affordability alone. What increasingly matters is how they deliver the value consumers expect within a defined price range.
Why Does Premium Beauty Continue to Grow?
Although products at accessible price points are becoming more competitive, demand for premium products has not disappeared.
In the first half of 2026, the U.S. prestige beauty market grew by 7%, matching the growth of mass beauty. More specifically, prestige skincare grew by 9%, while prestige hair care grew by 11%.
NIQ notes that product quality has become a baseline expectation in premium beauty, while value beyond the product itself—including trust in the brand and a differentiated shopping experience—also influences consumer choice.
In other words, even price-conscious consumers may be willing to pay more if they believe a product offers the performance, experience, or unique qualities they value.
In the premium market, it is therefore becoming increasingly important not simply to set a higher price, but to demonstrate through both the product and the brand why that price is justified.
Consumers Are Redefining What “Value” Means
How, then, should we understand the simultaneous growth of beauty products at both accessible and premium price points?
One important shift is that it is becoming harder to divide consumers simply into “value shoppers” and “premium shoppers.”
In its analysis of the U.S. beauty market in the first half of 2026, Circana noted that consumers are moving across price points and selectively investing in products that offer them the greatest functional and emotional value.
In other words, consumers do not apply the same price expectations to every beauty product. Depending on the purchasing context and the type of product, they may prioritize affordability and practicality, while in other cases they may be willing to pay more for performance or an experience they value.
At the same time, consumers’ definition of “value” is changing.
Circana identified “Redefined Value” as one of the key shifts shaping the beauty market in 2026. Here, value does not simply mean a low price. It also reflects what consumers receive in return for what they pay, including product performance, user experience, and convenience.
The simultaneous growth of value and premium beauty is therefore not necessarily contradictory. Rather, it reflects an increasingly selective approach in which consumers weigh each product’s price against the value it offers.
At accessible price points, the key question is, “How much satisfaction will this product deliver at this price?” At premium price points, consumers need a compelling answer to the question, “Why should I pay more?”
Ultimately, the core question is the same at every price point:
“Is this product worth the price?”
A Product’s Target Price Also Shapes Its Development Direction
These changes in consumer behavior have important implications for brands preparing new products.
A product’s target price is not merely something to decide at the very end, after development is complete. Depending on the intended consumer, target market, and planned retail price, decisions about the formula, key ingredients, fill volume, packaging, and other product elements may also change.
Different price points affect more than production costs; they can also shape the value consumers expect and how that value should be delivered.
When targeting an accessible price point, brands need to decide which elements consumers value most and where to focus within the available constraints.
By contrast, at a premium price point, a high price or luxurious packaging alone may not be enough to create meaningful differentiation. The formula, ingredients, user experience, packaging, and other product elements should work together to communicate a level of value consistent with the target price point.
Ultimately, the question is not simply whether to make a product inexpensive or expensive.
Brands need to consider who the product is for, what those consumers value, and how that value can be built into the product within the target price range.
What Matters Is Not Just the Price, but Why Consumers Should Choose the Product
Recent changes in the beauty market show that consumers are not simply choosing between lower-priced and higher-priced products. Instead, they are paying closer attention to whether a product delivers enough value to justify its price.
For brands, the key question is not merely which price tier to enter, but how to design a product that gives consumers a compelling reason to choose it at that price.
Considering the target consumer, market, and price point together—and designing the product accordingly—can serve as an important starting point for product planning.
Based on each brand’s product ideas and requirements, Neo Mirae supports the entire product development process, from formula development to packaging and production.
Start turning your product idea into a finished product with Neo Mirae.
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