fbpx
BrandsFeaturedMarketingOpinion

Premiumisation 2.0: Creating value in a polarising GCC beauty market

Unilever’s Manan Gupta on how beauty brands can create value when consumers are trading up – and trading down.

Unilever’s Manan Gupta on how beauty brands can create value when consumers are trading up – and trading down.

The beauty market across the GCC continues to expand, fuelled by rising disposable incomes and a growing focus on beauty and wellness. But beneath this growth lies a powerful shift in consumer behaviour: a widening divide in how people choose to spend on beauty.

Today’s beauty market is increasingly polarising. On the one hand, consumers are trading up to products that deliver visible and credible results, while on the other, they are trading down to trusted essentials that feel reliable and offer good value.

What is inevitably shrinking is the middle – products that sit at a higher price point without offering consumers clear value in terms of benefit, meaning or proof. This shift transcends economic pressure and reflects a deeper evolution in how consumers define value today. Value is no longer driven by aspiration alone; it is shaped by efficacy, ingredient credibility, simplicity and wellbeing. And that means premiumisation itself must evolve.

From premiumisation 1.0 to premiumisation 2.0

Historically, premiumisation in beauty has been linked to elevated packaging, sensorial superiority, luxury cues and premium pricing. While these still matter, they are no longer sufficient to drive true premiumisation.

Premiumisation 2.0 is not about looking more expensive; it is about being demonstrably better. Premium must be earned through science-backed efficacy, credible ingredient stories, disciplined pricing strategy and storytelling that proves and educates without exaggeration. How and where value is communicated also matters. Presence across channels where trust is built – such as social commerce and pharmacies – and delivery through digital-first consumer journeys is increasingly critical. While this change is a global phenomenon, nowhere is it more pronounced than in the GCC. Today’s beauty consumers are highly informed, digitally fluent and culturally attuned to both global trends and local relevance.

Beauty and wellbeing: no longer separate conversations

At Unilever, we recognised early that beauty and wellbeing are no longer separate pursuits.

Consumers no longer see looking good and feeling good as independent goals. They are seeking solutions that support physical appearance, mental wellbeing and long-term health – together.

And yet, the industry has been slow to respond. Nearly nine in 10 people believe that the beauty industry still prioritises appearance at all costs, often pressurising them to look good, rather than empowering them to feel well.

This gap between what consumers want and what the industry delivers is exactly where premiumisation 2.0 becomes relevant.

We have responded by transforming the way we organise and innovate – bringing beauty and wellbeing together within one integrated agenda. It is a strategic shift grounded in science, designed to build desire, credibility and relevance. We are advancing new thinking through market-leading research that harnesses this convergence, translating it into products that deliver beauty outcomes with wellbeing benefits built in, not bolted on.

Five long-term beauty and wellbeing trends driving demand

This evolution is playing out through five long-term trends that are reshaping where consumers are willing to trade up – and why.

1. Longevity and health span: from anti-ageing to age-smart living: Consumers are moving away from short-term anti-ageing fixes towards an age-smart approach. The shift is from correction to prevention, prioritising long-term skin, body and mind function, with daily routines framed as investments in future wellbeing rather than quick fixes to simply look younger.

2. Rise of the ‘skintellectual’ consumer: Today’s consumer is ingredient literate and results driven. They question hype, demanding proof through science-backed efficacy. Clinically supported actives, transparent claims and fewer but smarter products that work consistently over time have become the standard by which premium value is judged.

3. Inside-out beauty and functional nutrition: The convergence of beauty and wellbeing is accelerating through inside-out solutions. Consumers expect skincare, nutrition, sleep and stress management to work together. Functional foods and supplements delivered through accessible formats such as drinks and powders are becoming part of the beauty ecosystem.

4. Emotional wellbeing and stress regulation: Wellbeing is no longer just physical. Stress and anxiety are shaping beauty choices. Consumers want products that calm the nervous system, not just the skin, through neuro-cosmetic benefits and sensory rituals.

5. Personalised, tech-enabled and adaptive care: The times for a one-size-fits-all solution is over. Consumers want personalisation through diagnostics, AI and routines that adapt to life stages, climate, stress levels and skin condition. The future lies in smart systems, not isolated products.

Across all five trends, the direction is clear: consumers are upgrading from ‘looking good now’ to ‘functioning better for longer’.

Earning a premium status in a polarised market

To earn a premium in a polarised market, brands must do three things exceptionally well. First, they must be credible: desire must be grounded in science, clarity and proof. Second, they must be accessible, with a clear price-benefit ladder that allows consumers to enter, trade up and stay within a brand ecosystem. Third, they must be culturally fluent, using storytelling and trusted voices that resonate in the GCC. When brands combine science-backed authority, disciplined pricing and pack architecture, and sensorial storytelling rooted in real human needs, premiumisation becomes more powerful than a pricing strategy. It becomes a growth engine.

Premiumisation 2.0 is no longer about charging more. It is about meaning more. And in a market where consumers are trading up or down, and demanding more from both, it is the only sustainable path forward.


By Manan Gupta, GM Beauty and Wellbeing, Unilever – GCC, Turkey, Pakistan and Bangladesh