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Global Beauty Watch: Compliance Changes, Tariff Risks, and Market Shifts (Feb 2025)

Global Beauty Watch delivers the latest beauty industry updates, from regulatory changes to market trends and business strategies. Get outlook on compliance, trade developments, and the shifts shaping the global beauty landscape.

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Regulatory Updates: Key Cosmetic Safety Changes in Asia

As the global beauty industry continues to evolve, regulatory landscapes across Asia are shifting to ensure enhanced product safety and quality. Here’s what you need to know about the latest cosmetic compliance updates in China, South Korea, and Taiwan.

China: Full Safety Assessments Mandatory from May 2025

Starting May 1, 2025, all cosmetic companies operating in China must submit a comprehensive safety assessment report when registering or notifying products. This includes detailed safety evaluations of all ingredients used in a formulation, reinforcing China’s commitment to stricter product oversight.

The National Medical Products Administration (NMPA) introduced this regulation following a one-year grace period, during which certain substances were exempted. Companies can utilize various safety assessment methods, including non-animal testing, animal testing, and read-across approaches. However, while China has previously stated it would accept the read-across method, companies should be prepared to provide more widely recognized assessments due to lingering skepticism surrounding its reliability.

With the deadline fast approaching, brands must ensure compliance to avoid potential market disruptions.

South Korea: New Cosmetic Safety Framework by 2028

South Korea is set to roll out new safety regulations for cosmetics, with implementation beginning in 2028. A grace period from 2026 to 2027 will allow companies to adapt, with a draft regulation expected in the first half of this year.

Unlike China’s approach, South Korea will not require companies to submit safety assessment reports upfront. Instead, brands must prepare these reports and have them available for audits. Additionally, the upcoming framework will introduce new roles for safety assessors, reinforcing South Korea’s commitment to a robust safety system.

Taiwan: Stricter Compliance for Specific Cosmetics Categories

Taiwan is also tightening its cosmetic regulations. Starting July 1, 2025, manufacturers of baby products, lip products, eye products, non-medicated toothpaste, and mouthwash must establish a Product Information File (PIF). General cosmetics will follow suit one year later, on July 1, 2026.

In line with international safety standards, Taiwan’s Food and Drug Administration (TFDA) has finalized amendments to its list of prohibited ingredients, aligning more closely with ASEAN and EU regulations. The expanded list, which took effect on January 1, 2025, now includes nine additional substances, such as aminocaproic acid (INN) and its salts.

Final Thoughts

As Asian regulatory authorities introduce stricter safety measures, companies must stay ahead of compliance requirements to maintain smooth market access. With China’s imminent deadline, South Korea’s forthcoming framework, and Taiwan’s alignment with global standards, now is the time for brands to review safety protocols and ensure regulatory readiness.

For further insights or support in navigating these regulatory changes, feel free to reach out to our team.

The Implications of a Potential TikTok Ban for the Beauty Industry

Navigating the TikTok Ban: Implications for Beauty Brands

TikTok has become a crucial platform for beauty brands, driving product discovery, viral trends, and consumer engagement. A U.S. ban would significantly disrupt digital marketing strategies, forcing brands to rethink brand awareness and customer acquisition.

With the Supreme Court enforcing the divest-or-ban law only for President Trump to delay enforcement by 75 days, the platform’s future remains uncertain. However, the broader issue is clear: this battle is part of a larger shift in global tech governance, with potential ripple effects on trade and digital infrastructure.

Key Takeaways for Beauty Brands

  • Geopolitical awareness is essential : Tech and trade policies are shifting rapidly.
  • Diversification is critical : Overreliance on a single platform is increasingly risky.
  • Global internet governance is evolving : A fragmented digital landscape may redefine cross-border operations.

Market Impact

TikTok drives 44% of brand-related views through paid campaigns (NielsenIQ & Spate), making it a key conversion driver. Without it, brands face several challenges:

Higher costs
Shifting to Instagram Reels and YouTube Shorts means increased CPM rates and intensified competition.

Reduced organic virality
More investment in direct consumer engagement will be necessary to compensate for declining reach.

Strategic Contingency Planning

To mitigate platform risk, brands are advised to focus on the following priorities:

Strengthening owned media
Prioritize email marketing, SMS, first-party data, SEO, and content syndication.

Platform diversification
Migrate content to Instagram Reels, YouTube Shorts, Pinterest Idea Pins, and emerging platforms such as Lemon8.

Content repurposing and creator economy adjustments
Reuse existing TikTok content and focus on micro-influencers and UGC to maintain authentic engagement.

Next Steps for Beauty Brands

Brands must act quickly. Short-term efforts should focus on content portability and audience retention, while long-term strategies should emphasize a multi-platform, data-driven approach. With regulatory scrutiny intensifying, how is your brand preparing for a shifting digital landscape?

Leadership Transition at Ulta Beauty: Strategic Implications and Market Outlook

Ulta Beauty’s Leadership Change: What It Means for the Industry

Ulta Beauty has appointed Kecia Steelman as President and CEO, effective immediately, following Dave Kimbell’s retirement. Steelman, formerly President and COO, brings deep expertise in operations, strategy, and supply chain management.

Industry Implications

Ulta’s leadership transition comes at a time of shifting consumer behavior and intensifying competition. Key areas of industry impact include:

Retail and brand strategy
Ulta’s evolving approach to store experience and brand curation may influence how retailers balance mass and prestige offerings.

Partnerships and innovation
Steelman’s history with the Ulta-Target partnership highlights the growing role of cross-retail collaborations in shaping future distribution models.

Market performance trends
Ulta’s response to moderating beauty spending will be closely watched as a signal for broader industry dynamics in 2025.

Market Performance and Competitive Landscape

Ulta has faced a moderation in beauty spending as the market normalizes post-pandemic. Comparable sales declined by 1.2% in Q2 2024 before rebounding with a modest 0.6% increase in Q3. While Sephora continues its aggressive international expansion, Ulta is expected to refine its domestic strategy to sustain growth.

Looking Ahead

Steelman has reaffirmed confidence in Ulta’s long-term strategy, citing its refreshed strategic framework and consumer engagement initiatives such as The Joy Project. The company also reported stronger-than-expected holiday sales, leading to an upward revision of Q4 comparable sales guidance. Full-year earnings will be disclosed on March 13, 2025.

Ulta’s strategic shifts under Steelman could prompt retailers to adjust assortments, pricing, and in-store experiences to remain competitive. Wholesalers may also see changes in demand as Ulta recalibrates sourcing and partnerships, influencing pricing and distribution trends across the industry.

As Steelman takes the helm, how will Ulta evolve to meet shifting consumer expectations and reinforce its leadership in the beauty sector?

Puig Extends Investment in Charlotte Tilbury, Aiming for Full Ownership by 2031

Spanish beauty conglomerate Puig has announced an extension of its investment in Charlotte Tilbury until the end of 2030, with plans to gradually assume full ownership by early 2031. Charlotte Tilbury MBE will retain a minority stake during the transition, maintaining her leadership role as President, Chairman, and Chief Creative Officer.

Strategic Growth and Market Performance

Since Puig first acquired a majority stake in 2020, Charlotte Tilbury has experienced substantial growth, more than tripling its net revenue. While Puig does not disclose individual brand sales, its makeup category grew by 7.3% in Q3 2024, reaching €535 million in the first nine months. Charlotte Tilbury was cited as a key growth driver, particularly in EMEA and the United States.

This performance aligns with Puig’s broader portfolio strategy, which includes brands such as Rabanne, Nina Ricci, Dr. Barbara Sturm, and Carolina Herrera. The extended partnership underscores Puig’s long-term commitment to Charlotte Tilbury’s expansion in the premium beauty segment.

Brand Momentum and Market Influence

Charlotte Tilbury has solidified its position as a leading social-media-driven beauty brand. In 2024, data analytics firm Launchmetrics ranked it fourth on its “Top Beauty Brands on Social Media” list, with an estimated $905.5 million in media impact value.

High-profile collaborations, including appearances by Celine Dion at the Paris Olympics opening ceremony and Cynthia Erivo at the Wicked premiere, have further amplified its cultural relevance.

The brand is also expanding its physical retail footprint. In January 2025, it will debut the Charlotte Tilbury “Skin Spa” in London’s Covent Garden, offering exclusive treatments, makeup tutorials, and event activations.

Looking Ahead

The extended partnership reflects confidence in Charlotte Tilbury’s continued growth trajectory. Marc Puig, CEO of Puig, emphasized the brand’s strong market position, while Charlotte Tilbury highlighted the collaboration’s alignment with her long-term vision for innovation and global expansion.

As Puig moves toward full ownership, how will this next phase influence Charlotte Tilbury’s brand strategy, product innovation, and international growth?

New EU Cosmetic Regulations: Key Updates on Ingredients

The European Commission has updated cosmetic regulations with new restrictions on several ingredients to enhance consumer safety. Key updates include:

Butylated Hydroxytoluene (BHT)
Now limited to 0.001% in mouthwash, 0.1% in toothpaste, and 0.8% in other cosmetic products due to concerns around endocrine disruption.

Acid Yellow 3
Restricted to a maximum concentration of 0.5% in non-oxidative hair coloring products.

Homosalate
Limited to 7.34% in face products, including creams and pump sprays, and 0.5% in other cosmetics due to potential endocrine effects.

HAA299 (Bis-(Diethylaminohydroxybenzoyl Benzoyl) Piperazine)
Approved for use up to 10% in both nano and non-nano forms, with restrictions on inhalable applications.

Resorcinol
Regulation corrected to allow use in eyebrow dyeing while maintaining restrictions on eyelash dyeing.

Brands must comply with these updated limits within the designated transition period to continue selling affected products in the EU market. For full details, refer to Commission Regulation (EU) 2022/2195.

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