For decades, the cosmetics industry was dominated by global beauty brands that relied on advertising, celebrity endorsements and department store distribution. That model is being challenged as European supermarkets rapidly expand their own-brand skincare, haircare and personal care ranges, turning beauty into one of the most competitive new categories in grocery retail.
What began with basic shampoos and shower gels has evolved into a much broader offer that includes facial serums, moisturisers, sun care, anti-ageing products and premium beauty collections. Retailers are investing in better packaging, improved formulations and dedicated beauty sections that increasingly resemble specialist cosmetic stores.
The main driver behind the trend is value. European consumers remain cautious about spending, yet many still want quality skincare products. Supermarket private label ranges often cost a fraction of equivalent branded products, making them attractive to shoppers looking to reduce household expenses without giving up beauty routines.
Retailers have also become more sophisticated in product development. Many now work with the same manufacturers that produce for well-known beauty brands, allowing supermarkets to launch products with ingredients such as hyaluronic acid, niacinamide and vitamin C at significantly lower prices.
This shift has major implications for the traditional cosmetics industry. Multinational beauty companies are facing pressure not only from specialist online brands but also from supermarket chains that already enjoy high customer traffic and strong consumer trust.
The opportunity for supermarkets is substantial. Beauty products typically generate higher margins than many food categories, making them an attractive source of profitability. As grocery margins remain under pressure, expanding higher-value categories such as cosmetics becomes strategically important.
Spain provides a clear example of the trend. Chains including Mercadona have demonstrated that supermarket-owned beauty ranges can become destination products in their own right, attracting customers specifically for cosmetic purchases.
Industry analysts increasingly believe that the boundary between supermarket and beauty retailer will continue to blur. Over the next five years, private label cosmetics could become one of the fastest-growing own-brand categories in Europe, forcing established beauty companies to rethink pricing, innovation and distribution strategies.
For supermarkets, the beauty aisle is no longer an afterthought. It is becoming a serious profit engine and a new battleground for customer loyalty.