Online Beauty: New entrants are reshaping the competitive landscape

E-commerce is accelerating across Europe, driven by marketplaces, social commerce and emerging consumer behaviours. During a recent webinar on European market trends, NielsenIQ highlighted a profound reshaping of the competitive landscape.

By Véronique Louis

While historically dominant e-commerce sectors such as fashion and consumer electronics are showing signs of maturity, beauty continues to gain momentum. During a webinar held on 3 June 2026, consumer intelligence specialist NielsenIQ (NIQ) stated that beauty has now become the second-largest online category in Europe, behind food and beverages. Online sales of cosmetics and fragrances are also continuing to grow faster than brick-and-mortar retail sales in most of the markets analysed.

NIQ’s study is based on actual purchasing data from more than five million European online shoppers and covers ten major markets: the UK, Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Ireland and Switzerland. Claire Marty, Global Beauty Vice President, put the sector’s performance into a broader macroeconomic perspective: “Before looking at retail channels, it is essential to understand the consumer. Today, one-third of consumers believe their household financial situation has deteriorated compared with last year, which directly influences their spending decisions,” she explained.

Despite consumers' cautious spending habits, the global beauty market grew by 7.3% in 2024, according to NIQ, while Western Europe recorded growth of 7.7%.

Amazon strengthens its leadership position

One of the webinar’s key takeaways was the growing dominance of the US giant in online beauty. Amazon now ranks number one across most major European markets and continues to gain ground in premium segments.

The data presented showed that the platform is no longer simply a replenishment channel; it is increasingly attracting customers away from specialist retailers. In France, 30% of new beauty shoppers acquired by Amazon previously purchased from retailers such as Sephora, Marionnaud or Nocibé.

Customer loyalty is also increasing. In Italy, 42% of Amazon beauty shoppers no longer purchase these products on any other platform. Depending on the market, this proportion ranges from 19% to 42% across Europe.

Another significant development is Amazon’s growing credibility in skincare and dermocosmetics, two categories traditionally dominated by perfumeries and pharmacies.

TikTok Shop is changing the rules of the game

Long regarded primarily as a discovery platform, TikTok is now becoming a fully-fledged sales channel. The UK currently serves as the most advanced testing ground, where TikTok Shop has already become the second-largest online beauty retailer, accounting for nearly 10% market share.

Its European expansion is gathering pace. Following launches in the UK, Ireland and Spain, the platform rolled out in France, Germany and Italy in 2025.

According to NIQ, TikTok Shop is not merely diverting existing purchases but is also attracting new consumers and increasing overall spending. Active TikTok Shop shoppers increase their average basket value by almost 40% after joining the platform.

This trend illustrates the power of social commerce in driving impulse purchases and introducing consumers to new brands. For beauty companies, TikTok is becoming an increasingly important touchpoint within the customer journey, including among prestige beauty consumers.

K-Beauty emerges as a key growth driver

Another trend highlighted by NIQ is the continued rise of Korean beauty products.

South Korean brands are benefiting from the growth of social commerce, strong visibility on Amazon and European consumers’ increasing focus on efficacy. Several emerging brands are achieving double-digit growth across marketplaces and social media platforms.

K-Beauty is no longer confined to a niche market. In certain skincare categories, it is competing directly with established premium brands and proving particularly successful in attracting younger consumers.

According to NIQ, this ability to recruit younger shoppers is one of the main sources of pressure on heritage prestige brands, whose customer base is renewing itself at a slower pace.

The rise of dupes is redefining perceived value

Fuelled by TikTok and marketplaces, these affordable alternatives replicate the olfactory or aesthetic codes of established brands. The trend is becoming firmly entrenched across Europe, with the fragrance category appearing particularly exposed.

The success of brands such as Divain in Spain and Adopt in France illustrates the growing strength of this phenomenon. Consumers are increasingly weighing perceived performance against cost, challenging some of the traditional foundations of prestige beauty.

Price gaps can reach several hundred euros between products that consumers perceive as being very similar.

Prestige beauty under pressure, yet still growing

Although prestige beauty continues to grow in value terms, its relative share of online beauty sales is declining in several European markets due to competition from multiple directions, including dermocosmetics and K-Beauty.

While premium skincare faces increasing challenges, it continues to stand out thanks to its expertise, high levels of consumer trust and brands’ ability to maintain clear differentiation.

For NIQ, the key challenge facing prestige players is no longer solely customer retention but also the recruitment of younger consumers, particularly Generation Z shoppers, whose purchasing habits are increasingly shaped by TikTok, Amazon and social platforms.

Towards a more complex omnichannel ecosystem

One of the webinar’s strongest messages was that the beauty purchasing journey no longer follows a single path.

Consumers now move seamlessly between marketplaces, specialist retailers, social media platforms, brand websites and second-hand marketplaces. This fragmentation is making single-channel strategies increasingly ineffective.

For brands, having a comprehensive view of purchasing behaviour is becoming a major competitive advantage. Omnichannel data collection now enables companies to measure customer acquisition, cannibalisation and loyalty dynamics more accurately across different touchpoints.

Maria Angela Figlia, CMI Business Partner at L’Oréal Italy, confirmed the importance of this capability: “The online beauty market is evolving extremely quickly. Between new entrants, changing consumer behaviours and the emergence of new platforms, it is essential for us to have a clear understanding of what is really happening in the market,” she explained.

While Amazon and TikTok are already reshaping the competitive landscape, other challengers are waiting in the wings. Joybuy, JD.com’s Chinese e-commerce platform, is already established in Belgium; Spanish retailer Primor continues to pursue ambitious growth plans; while in France, Aroma-Zone is attracting consumers with its affordable pricing strategy and holistic approach to beauty.