Finnish cosmetics market grows by 3.2% – skincare and make-up drive growth

According to a report* by the Finnish Commerce Federation examining the cosmetics market, growth in the domestic market will remain slower than international trends in the coming years. Growth is particularly constrained by weak growth in purchasing power, an ageing population and the structure of the market.

“The proportion of people over the age of 50 is growing in Finland. They are price-driven cosmetics buyers, and their shopping baskets are weighted differently than those of younger people. Furthermore, the luxury cosmetics market in Finland is small and growing slowly,” says Jaana Kurjenoja, Chief Economist at the Finnish Commerce Federation, providing context for the growth forecast.

“To seek growth, domestic cosmetics brands should strive even more strongly for international markets and utilise digital channels. The e-commerce of cosmetics is growing globally,'” Kurjenoja continues.

Personal care products are the largest product group in the market, accounting for approximately 47 per cent of the total. This group includes, for example, soaps, shampoos, toothpastes and shaving creams. The second largest is skincare, which accounts for approximately 30 per cent.

Growth is fastest in skincare and make-up. Consumer interest in ingredients and their effects is now broadly driving the market. The line between skincare and make-up is blurring, as nourishing ingredients are increasingly being introduced into make-up products as well. At the same time, the cosmetics industry is investing more heavily in science-based product development.

“Traditional marketing talk is no longer enough,” Kurjenoja states.

Beauty technology and artificial intelligence are also revolutionising the market, as they enable personalised product recommendations and treatment routines. This is prompting companies to develop and offer individual solutions.

Social media is a key channel in the cosmetics customer journey

The strong role of social media in young people’s customer journey has foreshadowed a broader development, as social media has now also strengthened as a source of impulse purchases and product information for older age groups. In cosmetics, the significance of social media has long been greater than average and has paved the way for development in other product groups as well.

According to a recent consumer survey targeted at students by the Finnish Commerce Federation, approximately 80 per cent of female students under the age of 30 have followed content related to wellbeing or skin and hair care on social media during the past year. About half of young men also follow social media content related to wellbeing, and a quarter follow topics concerning skin and hair care.

“The growing use of cosmetics by men is a global trend that is also visible here,” says Kurjenoja.

There are differences in brand choices between genders. Among young women, domestic brands are most heavily favoured (58 per cent use domestic brands), whereas among young men, the emphasis on European brands is strongest (41 per cent).

Social media has strengthened the awareness of K-beauty around the world. In Finland, half of young women have already at least tried Korean cosmetics, and 30 per cent say they use them regularly or relatively often. A third of young men have at least tried Korean brands, and 16 per cent use them at least relatively regularly.

*The report also provides perspectives on the development of the cosmetics market in an international comparison. The main source of the international consumer comparison is Statista’s consumer survey, in which the Finnish sample from 2025 comprises approximately 7,000 adults. The survey targeted solely at students under the age of 30 was carried out in March 2026, and its sample consists of 664 secondary and tertiary students. The survey was designed and conducted by the Finnish Commerce Federation. The main sources used for the market size estimates and growth forecasts for the cosmetics market are the Statista and ECDB databases, as well as the Finnish Commerce Federation’s “Verkkokauppa NYT” survey.

For further information, please contact:

Jaana Kurjenoja, Chief Economist, Finnish Commerce Federation, tel. +358 (0)40 820 5378, jaana.kurjenoja(at)kauppa.fi.