Despite continued financial pressure on households, beauty remains one of Canada’s strongest-performing retail sectors. Like consumers in the United States, Canadians are becoming more selective in their purchases rather than reducing beauty spending altogether, prioritising products that deliver performance and value.

Actually, Circana highlights beauty’s role as an affordable indulgence: 83% of Canadians consider self-care important, while 33% say they frequently treat themselves with small purchases to feel better.

Hair care leads growth

Hair was the standout category, with sales increasing 23% compared with the first half of 2025. Demand was driven by scalp health, treatment-focused routines and hair wellness.

Among the fastest-growing segments were hair serum (+91%), and daily rinse shampoo (+22%) and conditioner (+20%). Circana identifies scalp care as one of the market’s most dynamic segments, reflecting consumers’ growing willingness to invest in wellness-inspired beauty routines.

Skincare benefits from masstige momentum

Skincare sales rose 6% in the first half of 2026, supported by demand for clinically credible products offering proven results at accessible price points.

Face sunscreens remained one of the category’s fastest-growing segments as daily UV protection became increasingly mainstream. Premium body care also gained momentum as consumers extended skincare routines beyond facial products.

Circana’s data show that masstige facial skincare brands outperformed prestige brands, recording 22% growth through June.

Makeup remains resilient

Makeup sales increased 4%, fuelled by social media influence, e-commerce and product innovation.

Online sales generated more than three-quarters of the category’s dollar growth during the period.

The strongest-performing segments included: hybrid lip products (+73%), lip liner (+42%), blush (+20%), and setting sprays and powders (+11%)

Stick formats continued to perform particularly well as consumers sought convenient, portable and multi-functional products.

Fragrance slows

Fragrance growth moderated to 1% after several years of rapid expansion, but Circana says consumer interest in the category remains high.

Shoppers are increasingly building fragrance wardrobes, investing in higher-concentration formats such as eau de parfum and parfum, while expanding scent routines into body care and wellness products.

For instance, body oils grew 26%, alongside continued interest in scent-layering products and fragrance-adjacent rituals.

Positive outlook

"Canada’s consumers continue to face financial pressures, with savings, expense management, and debt reduction ranking among their top priorities in 2026; however, the beauty market continues to demonstrate remarkable resilience despite continued economic uncertainty and cautious consumer spending," said Alecsandra Hancas, Circana’s beauty and wellness industry analyst for Canada. "Consumers are becoming more intentional with their spending, but they have not walked away from beauty. Instead, they are prioritizing products that deliver efficacy, support wellness goals, and provide an affordable form of indulgence."

Circana expects Canada’s beauty market to maintain positive momentum through the rest of 2026.

“The beauty industry remains uniquely positioned at the intersection of wellness, self-expression, and everyday luxury. As consumer priorities continue to evolve, beauty brands that successfully combine performance, authenticity, innovation, and value will be best positioned to win,” concluded Hancas.