Vanity economy takes 37.5% of leased retail space in Q2

CBRE calls beauty services, cosmetics, and specialty fitness retail the "vanity economy." Influencer marketing, celebrity beauty partnerships, and a broader health-and-wellness push have turned appearance into a major consumer category, the firm argues. Consumers spent roughly $132 billion on appearance-enhancing products in 2025. That was up from $86 billion in 2020, according to the report summarized by Connect CRE.

By the second quarter of 2026, those categories accounted for 37.5% of total leased space, according to CoStar data cited by CBRE. McKinsey data in the report put the global beauty market near $450 billion. The report projects that market will grow around 5% annually through 2030. Cosmetics spending has risen 38% over five years. It now reaches $25.4 billion.

Physical stores still take 74% of beauty sales, so these tenants rely on real locations. Service businesses, including beauty salons, nail salons, and barbershops, are expected to grow 10% a year. Fitness centers collected $45.7 billion in consumer spending in 2025. Their visits recur weekly and pull foot traffic to neighboring shops.

CBRE treats beauty and wellness as a complement to other retail: these operators generate traffic and extend dwell time. Beauty services and boutique fitness open where demographics are favorable, the firm notes, so their presence doubles as evidence of a trade area's health. Private owners and investors have been watching retail demand return while new supply stays scarce. Treating these tenants as an afterthought no longer holds up.