Premium beauty champions: Breaking the exclusivity barrier with at-home luxury

Luxury beauty has historically been associated with exclusivity, but in recent years, the industry has undergone a significant transformation where accessibility is shaping the way these brands operate.

Consumers who are dealing with the cost-of-living crisis are turning to more affordable personal care options leading to an increase in at-home luxury care.

Innova Market Insights data indicates a 27% growth in personal care launches with premium claims from July 2019 to June 2024. The market researcher also says in its Premium Market Report (2024) that the global wellness economy is projected to reach US$8.5 trillion by 2027, with beauty and wellness representing a significant portion.

Simultaneously, the report shows that consumer behavior after the pandemic reflects an increasing preference for at-home beauty solutions. According to the market researcher, 43% of consumers prioritize physical and mental well-being, driving demand for innovations that marry professional-grade results with at-home convenience.

Rising inflation and the cost-of-living crisis have further accelerated this trend. According to the Innova report, one in five UK citizens said they were worried about being able to afford skin care products due to the cost of living, while one in six have either stopped buying skin care products altogether, or largely scaled down.

Innovations for luxury at home

The luxury spa experience is also moving into the home. The global spa market was valued at US$104.5 billion in 2022 and is projected to grow to US$156.1 billion by 2027, reflecting an annual growth rate of 8.3%, according to Innova Market Insights.

The researcher says the surge is fueled by consumers seeking convenience and cost-effective ways to maintain their wellness routines while extending the time between professional treatments.

Their statistics show that consumer behavior after the pandemic reflects an increasing preference for at-home beauty solutions. According to Innova Market Insights, 43% of consumers prioritize physical and mental well-being, driving demand for innovations that marry professional-grade results with at-home convenience.

This has led to many consumers investing in premium at-home products to create spa-like environments.

“Consumers learned that they could take care of their skin themselves with gadgets. They now need to come less often into the spa or salon, on the basis that they are savvy enough, after months of lockdown, to extend the effects of beauty treatments they have in the clinic, with at home devices,” Natalia Kulak, editor of Pro Beauty Loft Magazine, tells Innova.

Innova reports that premium brands have increasingly been launching products such as LED face masks and microcurrent devices, which deliver professional-grade results. These solutions have gained traction among consumers looking to take control of their beauty and wellness routines.

The tools are often combined with aromatherapy and make indulgence at home both accessible and effective.

Hybrid working models have incentivized the rise of the "spathroom," a bathroom reimagined as a wellness sanctuary.Hybrid working models have also incentivized the rise of the “spathroom,” a bathroom reimagined as a wellness sanctuary, Launches like Kohler’s SpaViva hand shower and Kelda’s Bubble Spa shower cater to this growing demand, allowing consumers to recreate the spa experience daily,

According to Innova, these offerings reflect a broader shift toward accessible luxury, with consumers increasingly viewing at-home spa rituals as essential for both mental and physical well-being.

Accessible luxury through e-commerce

As e-commerce plays a critical role in democratizing luxury beauty, Amazon, in particular, is at the forefront of this shift.

Investment bank Morgan Stanley predicts that the company is poised to overtake Walmart as the leading US beauty retailer by 2025, capturing 14.5% of the market share. This underscores a change in consumer behavior, with convenience and accessibility taking center stage.

Premium beauty brands such as Estée Lauder, Tatcha and Smashbox are tapping into the demand for accessible luxury. Estée Lauder’s 2024 debut on Amazon’s Premium Beauty store introduced a range of skin care, makeup and fragrance products and a Virtual Foundation Tool, exclusive to Amazon, that enables users to match and purchase their foundation shade virtually.

Similarly, Smashbox entered Amazon’s beauty store with its personalized Primer Finder tool, which recommends products tailored to individual skin concerns. Premium Japanese skin care brand Tatcha also joined Ulta Beauty’s portfolio, making its traditional ingredient-based products available across Ulta’s 1,400 US locations.

Some brands are now launching exclusively on e-commerce platforms like Amazon. Two such companies are Prakti Beauty, a clean beauty brand explicitly scouted for Amazon’s Incubator program and Vichy Dercos, which launched exclusively on Amazon to address the unmet needs of 60% of Americans according to its target market.

These moves highlight that beauty is no longer confined to exclusive stores, but is evolving to meet consumers where they are — online.