BofA says beauty has staying power as consumer growth fades
EL•Revenue at 27 listed beauty companies rose 5.2% year on year in the second quarter of 2026, up from 4.2% in the first quarter and the strongest growth in two years. BofA Global Research said demand is accelerating as companies focus on innovation, advertising and new sales channels.
1. Beauty revenue accelerates
Revenue across 27 listed beauty companies tracked by BofA Global Research rose 5.2% year on year in the second quarter of 2026, compared with 4.2% in the first quarter. APR Cosmetics, which owns Medicube, led growth at 185.5%, while Bloomage fell 21.7%; L’Oreal grew 6.3%.
2. Online channels gain ground
Beauty retailer traffic at Sephora, Ulta and Nykaa remained strong, while TikTok Shop gained traction, particularly in hair care, where sales reached about $240 million. Amazon remained significantly larger. LVMH is set to be the first luxury group to report September-quarter earnings; its Sephora recently partnered with Marks & Spencer to expand in the UK.
3. Regional trends diverge
Southeast Asia and the Pacific remained solid, while Korea and Japan softened. BofA expects Latin America to slow in the third quarter on weakness in Mexico, though Brazil could improve from the fourth quarter and in 2027 post-election. Chinese exports of hair products to the United States rose 12.4% to $1.3 billion in the first half of 2026.
