The beauty market rewards smaller brands that think big
In recent years, smaller beauty brands have often outperformed big ones. The key to success in this beauty market is to build stronger, longer-lasting attention.
How do we know indie beauty brands are doing well? It’s all in this Traackr study, which analyzed the social media performance of 250 beauty brands in 2025. The findings show that indie brands now have a 20.4% share of market influence.
Why Are Small Brands Outperforming Big Ones?
Last year, e.l.f. Beauty acquired Hailey Bieber’s beauty brand, Rhode, for $1 billion. This valuation reflected a lot more than Bieber’s star power.
When Rhode launched in 2022, most of the brand’s visibility was a result of Bieber’s celebrity appeal. A single Instagram post could sell out a product. By 2025, however, Rhode was mostly relying on its extended creator community.
This is a pattern of brand growth shared by many indie companies. Nearly half of creators who work with indie brands repeat their collaborations. Smaller brands use this loyalty to amplify their reach and lower their cost per engagement.
How Should You Invest in Paid Creator Media?
Big brands tend to boost creator posts automatically. Any time a post goes live, they’ll immediately promote it in an attempt to meet campaign targets.
Smaller brands are unlikely to find beauty industry success this way. What you should do is wait to see how your posts perform organically. Then, invest in creator posts that are already resonating with your audiences.
For example, look at Gisou. This hair-care brand boosts more content than average, but its paid posts deliver far more engagement than big brands. This approach requires more attention and time, but the outcome is worth it.
How Does YouTube Impact the Beauty Market?
Another tidbit from the Traackr study is that TikTok and Instagram have reached peak saturation. Beauty creators keep posting, but engagement is going down.
Meanwhile, YouTube has become a great opportunity for sustained attention. It’s a more intentional platform, the place where people go to learn and spend more time with content. Key benefits of YouTube for beauty brands include:
- Showcasing the immediate results of beauty products
- Building deeper trust with their audience
- Shortening the consumer path to purchase
Building Marketing Infrastructure That Works
Though smaller brands are doing well for now, they still need an effective beauty marketing strategy. A good way to start is to ask yourself these questions:
- Which creators do customers associate with our brand?
- Which platform do people use to interact with our brand?
- Which organic posts perform well before we boost them?
You also need to find a way to balance your budget between marketing and product development. For many smaller brands, it may make sense to invest in white label skincare rather than create a unique formula for every product.
Keep Track of Emerging Beauty Trends!
The beauty market is notoriously volatile, so smaller brands must tread carefully. Right now, the best approach is to build long-term creator relationships and follow the attention. The above article will help you get started!
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