Innovation in the Evolving Beauty Landscape: Key Takeaways from Beauty Connect

At this year’s Beauty Connect conference, industry leaders, investors, and innovators gathered to explore the future of beauty—highlighting emerging consumer trends, investment opportunities, and technological advancements reshaping the skincare space. 

Skincare Holds Steadfast in a Challenging Market 

Even as consumers tighten their wallets, skincare remains resilient. Unlike makeup, which has seen deeper cutbacks, skincare continues to hold a firm place in consumer routines. In fact, 61% of consumers report being more invested in healthy skin than anti-aging, and 42% say they want to use fewer products—signaling a shift toward simplification, wellness, and long-term skin health. 

Yet wallet share is under pressure. The GLP-1 boom, which has captured $1.2B in consumer spending, is pulling dollars away from traditional beauty and anti-aging categories. Spend per clinic visit is shrinking, and the high cost of these popular drugs is directly challenging skincare loyalty. 

Investor Interest Remains Strong Despite Consumer Caution 

Although overall consumer spending may be down, investor interest in the sector remains steady. Panels on funding, M&A, and long-term growth strategies emphasized that capital is still available—especially for brands with a differentiated value proposition. 

 This is not a big surprise. Despite its size, the U.S. skincare market still has room to grow. Only 32% of U.S. consumers currently purchase skincare, compared to 38.5% in Canada, 38.9% in Australia, and 55.5% in South Korea. Consumer demographics are also shifting. Today, 44% of men purchase skincare, and 72% of individuals undergoing aesthetic procedures are under 44 years old. With skincare as the largest segment in beauty, this under-penetration of the market presents a compelling opportunity for expansion, tapping into the growing consumer base among men, Millennials, and Gen-Zs. 

Emerging Opportunities for Investors 

One of the most buzzed-about opportunities: the rise of oral beauty supplements. While these emerging products are unlikely to unseat existing topicals or injectables, oral supplements have demonstrated impressive clinical results that indicate the sector is positioned for growth. One supplement in particular has proven highly effective—with the ability to reverse glycation in placebo-controlled, double-blind studies—highlighting how science-backed innovation is driving a new era of performance skincare. For investors, oral beauty supplements could be another welcome addition to their skincare portfolio. 

In addition, the medical spa market continues to prove ripe for investment. Of the roughly 11,500 med spas across the U.S., private equity currently holds just ~3% of market share. With average revenue per location hovering between $1.4M–$1.6M, the value creation opportunity is tremendous. In and outside the med spa space, we’ve seen a surge of investments in multi-site consumer service roll-ups and a corresponding uptick in demand for Presidents, CEOs, and COOs to come in and professionalize these businesses. This trend is indicative of the strong need for operational excellence to deliver on the playbook, grow EBITDA quickly, and secure a successful exit. For adept investors, it is clear there is still significant room to consolidate, professionalize, and extract value in the med spa space.   

Looking Ahead 

Beauty Connect reinforced that the industry is still a space defined by innovation—even amid economic headwinds. Strategic investors who take advantage of the current market will be well positioned to lead the next wave of growth. 

Source: Dermatological Beauty Connect 2025: The Future of Aesthetics in Miami