Inside CEW’s ‘State of the Industry’: What’s Next for Beauty, Retail, and the Workforce

At Cosmetic Executive Women’s (CEW) recent State of the Industry: Global Trend Report 2025 webinar, the mood was less about chasing growth and more about what comes next. Speakers focused on how to keep customers loyal, improve margins, and support retail teams under pressure. 

Within that conversation, a few insights from McKinsey, Circana, and Beauty Independent signaled what many brands are already feeling: that 2025 is rewarding preparation over expansion. 

Consumers are cautious, but they’re still spending

McKinsey’s Megan Pacchia and Kristi Weaver shared data showing that affordability remains a major factor in beauty purchases. For instance, a larger share of shoppers are now spending less per product category (under $35/category) than they did two years ago.  

That doesn’t mean they’ve stopped buying, though—they’re simply choosing their purchases more selectively. 

In addition, consumers are continuing to “trade down” on some products while splurging on others. Things like serums, foundations, and hair treatments are still strong, while lip balm and other everyday products are seeing slower growth. 

For retailers, that can create uneven demand across categories, which means that staffing and scheduling need to follow those shifts closely. When one area of the store surges while another slows, managers need flexibility to reallocate coverage and keep service consistent. 

Read more: The 5 Most Common Mistakes in Seasonal Hiring (And How to Avoid Them)

Retailers are focusing on depth, not expansion

Most brands aren’t looking to add new retail partners in 2025.  

As one insight noted, “the vast majority are hunkering down and going deeper with existing partners.” 

Top concerns include declining foot traffic and lower sell-through rates—both of which make it harder to justify new distribution. 

This renewed focus puts more pressure on in-store execution. When fewer partners drive most of the revenue, every retail relationship matters. Things like smoother onboarding, consistent training, and compliance handled in the background keep programs running efficiently and reduce the risk of disruption during peak periods. 

Profitability is under strain

The largest risks to profitability were tariffs and return on marketing dollars. Nearly half of brands have already raised prices or plan to within six months (29% won’t raise prices; 24% already did; 24% plan to within six months).

However, even though margins are tighter, expectations haven’t changed. Retailers still need full visibility into labor costs and real-time reporting to manage budgets. Faster onboarding and time-tracking systems can help close that gap, keeping store-level operations efficient while budgets remain under pressure. 

Read more: Contingent Workforce Planning and Automation

CEOs are focused on turnover and development

Nader Naeymi-Rad of Beauty Independent noted that CEOs see the most turnover risk at the junior level, and that development remains one of the hardest challenges to solve.

That risk becomes especially visible during seasonal surges, when demand spikes and new hires need to perform quickly. 

Brands that prepare well focus on the basics: 

1. Smooth onboarding before the season hits 

2. Compliance handled behind the scenes 

3. Managers equipped to spot and address coverage gaps 

When those systems are in place, flexible teams can ramp faster and stay engaged longer, reducing costly churn. 

Read more: Want a Flexible Workforce? Here’s How You Can Build One That Works

AI adoption is nearly universal

The webinar data showed that 94% of companies already use AI in some form. About half use it through ERP systems, and many rely on it for copywriting and marketing support. 

The panelists predicted that the next phase of adoption will likely focus on operations, using AI to improve reporting, forecast staffing needs, and automate onboarding workflows—areas where technology can directly improve efficiency without disrupting day-to-day work. 

Innovation is being driven by health and purpose

Larissa Jensen of Circana pointed to new growth from health-driven products and consumers using GLP-1 medications. With that, demand is rising in categories tied to self-care, skincare, fragrance, lip, and hairstyling.

She summarized the trend as “better for me, better for the world around me.”

And that mindset is influencing both product development and brand messaging. For retailers and field teams, for example, it means keeping information up to date: making sure flexible workers know how to speak to product benefits, ingredients, and brand values with confidence. 

Preparing for what’s next

From affordability and pricing to talent development and technology, 2025 has been challenging how brands manage both their business and their workforce.

Within a cautious market, preparation is what creates stability. In turn, brands that invest early in workforce readiness—through faster onboarding, clearer visibility, and compliant, flexible staffing models—will be ready to adjust when the next wave of change hits. 

Want to see how AllWork helps brands prepare their workforce for what’s next? Request a demo of the platform.