In 2025, Canada’s beauty market is settling into a more normalized growth pattern after several years of post-pandemic double-digit gains and a transitional 2024. Yet consumers continue to trade up in key categories.

According to market intelligence firm Circana, Canada’s total prestige beauty market grew by +4% in dollar sales and +3% in units sold from January through September 2025, versus the same period last year – with growth in both metrics across all major categories.

While overall momentum has moderated from the record-setting gains of recent years, the fragrance and hair segments continued to outperform the market and gain share.

Canada’s beauty market is normalizing from its exceptional growth phase, but consumers are still trading up in select areas,” said Alecsandra Hancas, beauty industry analyst for the Canadian market at Circana.

Skincare and makeup are lagging behind

Outperforming the overall market, prestige fragrance dollar sales grew by 7% and hair increased by +12% through the third quarter. These gains were accompanied by average selling price increases of 5% and 7%, respectively, indicating a trend toward premiumization in these segments. In contrast, skincare dollar sales grew by 1% only, with a slight decrease in average selling price, while makeup sales rose by 3%.

The current beauty trends reflect a shift in consumer preferences toward higher-quality and luxury products offering enhanced benefits and experiences,” said Hancas. “We expect Canada’s total beauty industry to close 2025 with single-digit growth, supported by category specific innovation, premium trade ups, and resilient online demand heading into peak gifting periods.