Last week, the US administration implemented new tariffs aimed at addressing significant trade imbalances. These measures include a baseline 10% tariff on all imports, with higher rates for specific countries based on their trade surpluses with the United States. The objective is to promote fair trade practices and bolster domestic industries.
Concurrently, consumer sentiment has declined, influenced by recent stock market volatility and economic uncertainties. This environment has notably impacted social commerce within the beauty and personal care sectors, leading to shifts in consumer purchasing behaviors.
In this CosmeticsDesign Q&A, we spoke with Madhav Pitaliya, Senior Research Executive at Coresight Research, to explore how these economic pressures are reshaping the role of social commerce in the beauty and personal care industries.
CDU: How have the current economic pressures impacted the role of social commerce – specifically in the beauty and personal care sectors?
Madhav Pitaliya: The use of social media as part of the shopping process has not changed since our previous survey: Just over two in five respondents did so in the past three months.
However, we are seeing a declining trend in conversion: 44.2% of use social media as part of the shopping process made a purchase via this channel in the past three months—down 8.5 PPTs since our July 2024 survey (when we started covering this sector, figure 1).
Figure 1. Proportion of All Respondents Who Have Used Social Media as Part of the Shopping Process* in the Past Three Month (Left); and Whether Those Shoppers Have Used Social Media to Purchase New Products (Right) (% of Respondents)
Source: Coresight Research (Coresight Research)
CDU: How has the recent stock market sell-off and overall economic uncertainty influenced consumer behavior in the beauty and personal care sector?
Madhav Pitaliya: The stock market sell-off, coupled with broader economic uncertainties such as inflation and tariff hikes, has clearly dampened consumer confidence. This is leading to a more cautious approach to spending, especially in discretionary categories like beauty and personal care (BPC).
While BPC remains a top category in social commerce, the conversion rate has declined notably, with just 32.9% of consumers purchasing BPC products via social media in March 2025 (our latest survey results), down 6.1 percentage points from December.
Consumers are increasingly shifting from impulse buying toward value-driven+, researched purchases, influenced by tighter household budgets and concerns over rising prices, including those affected by tariffs on imported packaging and ingredients.
CDU: Social commerce was expected to gain momentum, particularly with TikTok’s recent developments. Why do you think conversion rates are still declining despite this?
Madhav Pitaliya: Despite TikTok’s growing popularity and closing the gap with Facebook (only 5.3 PPTs difference in shopper penetration as of March 2025), conversion rates are declining due to multiple reasons. Firstly, post-holiday seasonality plays a role—Q1 is historically a period of tighter consumer budgets following festive overspending.
Secondly, economic pressures such as inflation, tariffs, and stock market volatility have made consumers more cautious. Moreover, the rise of AI-powered seamless shopping tools across e-commerce platforms increases competition, offering better checkout and fulfillment experiences than some social platforms.
Lastly, concerns over platform stability, such as the potential TikTok ban in the US, may create hesitation among shoppers and brands alike.
CDU: With 42.8% of consumers still using social platforms in their shopping process, what strategies should beauty brands adopt to improve conversion rates and drive engagement?
Madhav Pitaliya: Given that consumers are now prioritizing peer recommendations over influencer hype, brands should partner with relevant influencers that consumers follow.
With rising tariffs on cosmetics and packaging dampening purchase intent, brands should proactively flag “tariff-free” promotions or “no hidden cost” on their purchasing platforms.
Conversion rates are dropping partly due to clunky handoffs between discovery and purchase. Beauty brands should implement easy checkout options like one-click checkouts within TikTok/Instagram or limited-time discounts that can be accepted only through social checkout—reducing drop-off between engagement and transaction.
As many shoppers discover on social media but actually convert on marketplaces, brands should leverage platform APIs to retarget those consumers, nudging them to complete the purchase where they searched.
CDU: Are there specific product categories within beauty and personal care that are more resilient to economic downturns in social commerce, and why?
Madhav Pitaliya: Yes, core skin care products, personal hygiene items, and low-cost makeup staples (e.g., drugstore mascaras, lip balms, and cleansers) are likely to show greater resilience during economic downturns in social commerce. These categories are often seen as daily-use essentials or affordable self-care options, making them less likely to be cut from tightened budgets—even when inflation and tariffs weigh on discretionary spending.
In contrast, luxury beauty items and high-ticket products are likely to see declines in conversion as consumers defer splurges in favor of essentials.
As detailed in Figure 2, survey data shows that 32.9% of social media shoppers (although it declined from the previous survey in Dec 2024) still purchased BPC products as of March 2025, despite the post-holiday slowdown and economic headwinds—suggesting demand persists for more accessible items within the category.
Figure 2. Social Media Shoppers: Product Categories They Have Purchased in the Past Three Months (% of Respondents)
Source: Coresight Research (Coresight Research)
CDU: How can beauty brands adjust their pricing, promotions, or marketing tactics to maintain consumer interest and spending despite economic pressures?
Madhav Pitaliya:
Pricing
Social commerce platforms must ensure that prices match or beat those offered by major retailers. If beauty brands can maintain parity (especially on popular SKUs) while offering a better discovery experience, consumers are more likely to shift their purchase behavior to social platforms.
Position products around affordability and functionality—e.g., offering multipurpose products (like lip & cheek tints) or smaller packs that lower the entry price without compromising the brand. The strategies can be helpful to generate the consumer’s traction at a very basic level.
Promotions
During time-sensitive sale events, we have seen consumers buy products promptly. Beauty brands can leverage time-limited deals or offers, maintain exclusivity across platforms, and get involved in seasonal campaigns (e.g., “back to school season”) to drive impulse buying and engagement.
Major beauty companies like Ulta Beauty follow loyalty programs that provide several benefits to its loyal consumers. Beauty companies can partner with social platforms and drive better engagement through community driver loyalty programs.
Marketing tactics
Present products with distinctive brand storytelling that feels unique and engaging to consumers, helping them connect beyond just functionality.
Prioritize packaging and sustainability—using eco-friendly, refillable, or minimal-waste designs—to align with conscious consumer values and elevate brand perception.
CDU: Do you anticipate a rebound in social commerce for beauty products once economic conditions stabilize, or do you think consumer shopping habits are shifting more permanently?
Madhav Pitaliya: A rebound is likely once economic conditions stabilize, especially since social commerce is still in its growth phase. The current dip appears more cyclical than structural, driven by post-holiday seasonality and economic pressures rather than disinterest.
Consumers remain highly engaged on social platforms and continue to use them for discovery, reviews, and inspiration; at the same time, consumer behavior is becoming more discerning. Therefore, while conversion may bounce back, the impulse-driven, influencer-led purchases of the past may give way to a more value-focused, content-informed decision journey.
Brands will need to adapt their social strategies to reflect this shift continuously.
CDU: Any final thoughts?
Madhav Pitaliya: Beauty and personal care (BPC) products continue to dominate social commerce, consistently ranking among the top two categories purchased through platforms like TikTok, Instagram, and Facebook. However, this stronghold is increasingly vulnerable to macroeconomic pressures.
As inflation persists and disposable incomes tighten, there is growing consumer hesitation around non-essential or premium beauty purchases, especially when prices are impacted by tariffs on imported ingredients and packaging materials. While consumers may still engage with beauty content and seek product recommendations on social media, actual conversion rates could face headwinds.
The post-holiday slowdown in Q1 often brings a shift in consumer priorities. Many shoppers become more budget-conscious after the holiday season, scaling back on non-essential or impulsive purchases — a category that social commerce often falls under.
Social media platforms, particularly Facebook and TikTok, tend to see high engagement but lower conversion in the early months of the year, as consumers favor research and content consumption over immediate purchase. The dip also reflects a broader trend of consumers seeking greater value and authenticity, leading to more deliberate purchasing behavior rather than reacting to influencer promotions or viral trends.
Adding to the softness in demand are broader economic uncertainties, including concerns around inflation, tariffs concerns, and stock market fall, all of which are prompting shoppers to delay or avoid discretionary spending. Moreover, recent tariff increases on imported cosmetics and packaging components may be contributing to higher prices at checkout, further dampening conversion through social channels.
At the same time, consumers are not entirely pulling away from social commerce. Engagement remains strong, but there’s a clear shift from impulsive to value-seeking behavior.
Users are increasingly using platforms for product discovery, peer reviews, and comparison shopping, even if the final purchase happens on brand websites or through retailers like Ulta or Amazon. This suggests that while social commerce as a transaction channel may have dipped post-holidays, its role as a discovery engine remains robust, particularly in BPC and wellness categories.
Social media platforms and brands should stay on top of social commerce innovation to capture share of online shoppers who demand convenience and a seamless journey.