Impact of AR in the beauty and cosmetic industry in 2025 & beyond

Augmented Reality (AR) technology has played a significant role in the growth of the beauty and cosmetic industry. With this technology, around 75% more customers will likely purchase beauty products online after a precise visualization using AI face detection, skin analysis, and real-time visualization of products.

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With AR technology, the beauty industry is expected to grow at a CAGR of 25.5% from 2022 to 2027. Brands like Maybelline and L’Oréal use AR-based software and apps to provide several features, such as personalized product recommendations, virtual tours, and interactive tutorials, which increase customer satisfaction and boost brand loyalty.

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Key Takeaways

• With augmented reality technology, brands can provide a personalized shopping experience to customers, such as face detection and skin analysis. It helps users to visualize the product on their skin and increases user engagement.

• It helps the brand to provide a zero-contact experience to customers with the opportunity to customize a kit. It builds their confidence and trust in the brand and makes decision-making easier and smarter.

• With AR technology, users keep engaged with the website as they explore different products according to their style. It also provides them with personalized recommendations and realistic previews, which fosters their trust and loyalty towards the brand. In this blog, we will gain a detailed understanding of AR's role in the beauty industry, along with its trends, applications, benefits, future growth, and more. Let's get started!

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What is AR technology, and what is its role in the beauty industry?

Augmented Reality (AR) is a technology that displays digital information, including images, videos, sounds, and data, in the real world in real-time. It helps users interact with the environment and blends digital items with the real environment.

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Virtual reality (VR) uses an artificial space, whereas augmented reality (AR) provides a realistic view of products in the actual environment. AR uses cameras, sensors, and recognition elements to obtain an overview of the user's environment using mobile phones, tablets, and desktops.

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It provides real-time integration of online information into the real world, which enhances the perception of products in the user's environment. With a 3D model and 360-degree view, it also increases the interactivity by providing them with an in-store experience virtually.

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The role of AR in the beauty industry

To understand the role of augmented reality (AR) in the beauty industry, you have to understand its fundamental advantage that has helped the beauty industry to grow and evolve. The primary reason behind the implementation of AR in this industry is to engage customers and provide them with personalized products.

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The implementation of AR in the beauty industry is showing immense growth. By the end of the year 2025, the global beauty tech sector is expected to reach nearly USD 80 billion. With regular updates and advancements, such as easy integration, immersive retail experience, and virtual in-store experience, the industry is growing and evolving rapidly.

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Hence, the integration of augmented reality with the beauty and cosmetic industry has provided many benefits to sellers. Since we understand the primary reason behind the integration of AR in the beauty industry, it's time to gather some information on its role in the industry.

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• Virtual try-on: The e-commerce stores provide a virtual try-on feature to help users make an informed decision using AR technology. This feature offers the advantage of trying different makeup, beauty, skincare, and hair products before making a purchase. It also helps users make a better match for the product, which builds their trust in the brand.

• Personalized recommendations: Brands offer detailed skin analysis by using the AR technology to help users learn about their skin features and conditions. It also provides tailored product suggestions as per their skin and facial features. It will help customers to build a personalized skincare routine using these suggestions, which boosts their confidence and loyalty towards the brand.

• Data-driven insights: With AR technology, brands get data-driven insights and analytics that provide them with a detailed understanding of consumer behavior and product usage. It also helps them to comprehend user preferences, optimize inventory, and boost customer relationships.

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Key trends of the beauty sector

From sustainable products to beauty tech and hyper-personalization, the beauty industry has gone through multiple innovations to meet consumer expectations and offer better results. 

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In this section, we will go through some of the key trends of the beauty industry in 2025 that are making a rapid transformation in this industry.

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• Natural and sustainable product:  It is one of the emerging trends in the beauty industry because of the growing concern about health and environmental impact. Nowadays, people are seeking organic, natural, and clean ingredients for better results. To make products sustainable, they come with eco-friendly packaging and refillable containers.

• Beauty tech: New technologies such as artificial intelligence, augmented reality, and virtual reality play a crucial role in the beauty industry by improving user engagement and the shopping experience. With these innovations, brands provide several benefits, such as product recommendations, virtual consultations, interactive experiences, etc., to boost engagement and conversion rate.

• Hyper-personalization: By using real-time data and behavioral analytics, the beauty industry is offering hyper-personalized experiences. It also offers various features such as customized skin regimens, product recommendations based on skin analysis, etc. It boosts customer satisfaction and loyalty as they get unique preferences that meet their needs.

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Applications of AR in the beauty industry

The introduction of augmented reality in the beauty and cosmetic industry has brought immense growth and evolution. It enables several key applications such as virtual makeup try-ons, virtual in-store experiences, skin analysis, and more.

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It has also increased customer engagement, conversion rate, and sustainable economy. Here, we will study some key applications of AR in the beauty industry and how it helps brands to increase market value and reach the targeted audience.

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1. Virtual make-up try-ons

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Augmented reality enables several online stores to introduce virtual make-up try-ons, which provide customers with an in-store interaction and help them make informed purchases while shopping online. 

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With this application, users get personalized recommendations for makeup products with realistic results. They can also visualize the product application on their face and customize it accordingly.

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2. AI skin analysis

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It is another useful AR skin analyzer application in the beauty industry that offers a detailed analysis of skin conditions. This application uses augmented reality and deep learning to analyze the user's skin for dark circles, redness, pores, wrinkles, and acne. 

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After the complete analysis, it offers personalized recommendations based on the skin analysis results to customize the skincare routine and improve skin health.

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3. Virtual In-store analysis

With the effective application of AR in the beauty industry, the online shopping experience has improved for users. It offers an interactive and immersive in-store experience during online shopping. 

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It provides virtual makeup try-ons, getting the perfect product shade, and a complete product description with ingredients without any physical interaction. Hence, with digital modification, users save their time and energy concerning physical retail.

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4. AR-powered visual search

This feature allows users to understand which products and ingredients are suitable for their skin. By scanning their faces and different products, you can make quick recommendations for suitable skincare and makeup products. 

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AR allows users to learn about their skin profile, such as current makeup and skin undertones, to tailor and optimize their online shopping experience.

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5. Social media integration

Augmented reality helps brands perform seamless social media integrations on platforms such as TikTok, Instagram, and Snapchat to share their virtual try-ons and beauty filters. 

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With this feature, brands can create customized filters and share them with their audience to attract organic engagement and brand awareness across different apps. They can also collaborate with influencers to showcase their filters interactively and efficiently to increase their reach.

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Benefits of using AR software and apps

Augmented reality has been a transformative power in the beauty and cosmetic industry for the past few years. It is working as a bridge between digital innovation and personalized customer service. It offers various benefits such as virtual try-ons, personalized recommendations, realistic product previews, and detailed insights.

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This technology also helps brands to increase their customer value and market value in both direct and indirect ways. AR makes online shopping more enjoyable, interactive, and personalized, which builds customer engagement.

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It also helps brands to opt for a sustainable economy by offering try-before-you-buy and refillable containers. Hence, using augmented reality in the beauty industry is beneficial for both sellers and shoppers. Now, we will learn some more benefits of AR in the beauty industry.

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1. Improved customer experience

After the implementation of AR technology, brands experienced an increase in customer experience as it provided them with the chance to try different products, models, shades, and styles with realistic visualization before purchase. It also provides an interactive approach, making online shopping more enjoyable and informative.

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2. Personalized experience

Using the AR software and maps, you can perform facial mapping and detailed skin analysis to obtain a detailed report of your skin health. Based on your analysis, it offers personalized product recommendations according to your skin tone, type, and preferences to deliver a tailored experience. This detailed analysis and personalized experience increases customer satisfaction and loyalty towards the beauty brand.

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3. Data-driven insights

AR and AI offer detailed insights on different aspects, including customer preferences, behaviors, and trends, which help brands improve their market value. With data-driven insights, they can curate new products, optimize marketing strategies, and anticipate market demands to build a better and direct relationship with the targeted audience.

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4. Increased engagement

AR offers various engaging features such as interactive tutorials, gamified campaigns, and virtual try-ons to obtain consumer attention and active participation. With these interactive and engaging characteristics, users engage on the website or respective product pages, resulting in higher engagement rates, stronger brand recall, and improved product sales.

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5. Reduced return rates

With AR technology, users get the chance to have a realistic preview of the products before making any purchase decisions. When customers get a real-time product view according to their skin preferences and features, it increases their confidence and satisfaction with the brand, resulting in lower return rates.

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Future of AR in the beauty industry

The future growth of the beauty industry is very promising, as various advancements drive it. With the upcoming technology, the beauty industry will encounter several innovations, such as artificial intelligence, augmented reality, sustainability, and transformative salon experiences, which aim to improve experience and interaction. In the future, the emergence of AI and AR will offer more personalized AI-powered skincare products and recommendations. It will provide improved facilities such as detailed scanning of facial features, analyzing skin conditions, and tailored recommendations of skincare products.

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Another benefit of AR in the beauty industry is sustainability, which will bring an evolution in the packaging of beauty and cosmetic items. With the upcoming technologies, brands will make product wrapping sustainable by reducing cost and waste through virtual try-ons and digital product exploration. It will enable brands to support eco-friendly practices, minimize unnecessary purchases, and showcase their sustainable behavior.

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Last but not least, AR will help salons enhance the customer experience by offering them virtual makeovers to give them a realistic preview and reduce uncertainty. It will also help customers save time by previewing the designs of hair, makeup, and nails, which will also build their confidence and satisfaction. With AR-powered personalized consultation, users can customize the styles according to their preferences and choices.

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Role of AR in the beauty industry for e-commerce and online stores

Augmented reality (AR) technology has transformed e-commerce platforms and online store sellers. It has assisted them in boosting conversion rates, reducing returns, and increasing sales. AR technology has also allowed customers to try makeup products virtually on their skin, test skincare products, and experiment with different looks before making a purchase.

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AR technology assists users in performing different activities such as color matching, skin analysis, and creating immersive virtual experiences. These features increase user interaction and engagement on the website. AR technology will further assist sellers in increasing conversion rates, boosting user engagement, and enhancing brand loyalty.

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1. Reduces uncertainty

Using AR in the online store provides the feature of a virtual try-on that helps users visualize shades before making any purchasing decision. This virtual try-on feature builds customers' confidence in every transaction, further reducing uncertainty and increasing the satisfaction rate.

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2. Personalized shopping experience

AR technology allows users to perform skin analysis to obtain detailed results on skin tones, shades, and types. Based on these results, users will receive personalized skincare and makeup suggestions to tailor product recommendations according to their skin features. This provides users with a better shopping experience and increases brand loyalty.

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3. Reduces return rates

Augmented Reality has reduced the risk of dissatisfaction among shoppers by letting them conduct a realistic preview of the products in a real-time scenario. Studies have shown that brands have seen a reduction of up to 31% in the return rate after implementing AR try-on tools, which also improves the brand's profitability and operational efficiency.

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4. Enables real-time comparisons

With augmented reality, shoppers can compare different beauty products or look side-by-side simultaneously. It enables users to get real-time comparisons of different products and discover new items according to their skin features. It will also allow them to select appropriate products that best suit their skin type, tone, and features.

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5. Detailed consumer insights

Whenever a customer interacts with augmented reality, it generates valuable data and insights on different aspects, such as customer preferences, behaviors, and trending shades.

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With this data, brands can improve marketing campaigns, refine product offerings, and optimize inventory decisions. It will also help the brand improve customer relationships, enhance business strategy, and build customer experience.

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Top AR Apps and solutions in 2025

AR software and solutions have played a transformative role in boosting the beauty and cosmetic industry. It offers various features such as interactive, immersive, and highly personalized experiences to boost customer confidence. With increased customer satisfaction rates, brands get real-time data on their behavior and preferences, which enables them to generate better products.

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Hence, using AR solutions helps the brand to generate valuable data and consumer engagement tools. In this section, we will go through some of the top AR apps and solutions that brands use to boost their business.

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1. GlamAR

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GlamAR is advanced software that offers an AR, VR, and 3D-based solution for e-commerce and online store sellers to provide an immersive shopping experience for their customers. It has multiple features, such as virtual try-ons, 360-degree product view, AI skin analysis, and virtual store experience, to help online store sellers increase their product sales by up to 10 times with a cutting-edge virtual try-on facility.

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It offers virtual try-ons in different industries including makeup, eyewear, accessories, and jewelry, to improve the customer experience during online shopping. With this SDK software, brands can provide interactive and immersive product visualization.

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GlamAR provides advanced face detection and tracking features, using artificial intelligence to understand skin features and generate personalized product recommendations. With this feature, beauty brands can boost customer satisfaction and loyalty toward the makeup platform.

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Using its beauty and makeup SDK, brands can boost their engagement rate to 94% by increasing the session duration and keeping users engaged. It also reduces the return rate by 40% with enhanced realism and increased satisfaction with informed purchases.

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Therefore, GlamAR helps a brand increase conversions by 40%, build customer trust and loyalty, and provide data-driven insights to understand user experience and behaviour.

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2. MakeupAR by Perfect Corp

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MakeupAR by Perfect Corp is an SDK solution offering the virtual try-on feature for e-commerce and online businesses. It enables sellers to provide try-ons for different makeup products, including lipstick, blush, eyeliner, foundation, and more, according to skin features, tone, and type, tailored to users' skin conditions.

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It also suggests personalized makeup products according to individual needs, which boosts customer engagement and satisfaction rates by 200%. Features like AI-based skin analysis help users analyze skin features such as tone, type, redness, and wrinkles to customize skincare and makeup products. It also helps brands to boost conversion rate and brand engagement by offering personalized virtual try-ons to customers.

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It also aids companies in improving their conversion rate by up to 2.5 times by reducing the uncertainty associated with online shopping. This software also reduces the overall return rate up to 8% as it helps users customize products according to skin features. Therefore, using this makeup SDK helps brands increase their basket size by 40% on average.

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3. MirrAR

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MirrAR is an AR-based makeup try-on tool that provides real-time virtual try-on to make online shopping interactive and engaging. It offers an easy-to-integrate SDK for e-commerce sellers to provide customers with virtual make-up assistance during online shopping.

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It provides virtual try-ons for different products, including lipsticks, eyeshadows, and eyeliner, to help users customize their makeup according to skin tone, type, and features. It offers realistic facial mapping to detect 300+ facial points, including facial movements and changing lights.

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It offers AR-based makeup solutions to engage customers on product pages and boost brand engagement. It also offers multi-device compatibility so users can get wider access on desktops, tablets, and mobile phones. This boosts conversion and satisfaction rates for brands, as customers can make determined purchases after visualizing and comparing multiple products at once.

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Case Studies of Brands Using AR Beauty Apps

With technological advancements, several beauty and makeup brands are integrating their platforms with AR-based solutions to drive more sales. Several beauty companies are expanding their businesses by implementing these AR and AI-based technologies to attract more customers.

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To understand more about the role of AR in the beauty and cosmetic industry, we have to conduct some case studies on the brands that are using these innovations. Here, we will comprehend these brands using AR software and apps to grow their business.

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1. L’Oreal

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L’Oreal Paris is one of the most popular beauty brands using AR technology to provide its customers with personalized skincare and makeup products. It offers various features, such as skin analysis, makeup try-on, and hair try-on, collectively under the online beauty services section, which helps users select the appropriate shade and products according to their skin features and conditions.

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It helps users to try different makeup items such as lipsticks, eyeshadow, foundation, and more during online shopping to reduce the uncertainty and boost user engagement.

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2. Maybelline

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Maybelline offers different virtual try-on tools in which users can test makeup products during online shopping through the website and mobile phones. Using these tools, customers can visualize different looks and shades that perfectly match their skin tone and type.

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Using AR tools, Maybelline has increased customer satisfaction by reducing uncertainty during shopping, resulting in lower return rates. Virtual try-on also helped the brand increase its user engagement rate and streamline more products to offer a better shopping experience.

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Conclusion

Augmented Reality has played a revolutionary role in the beauty and cosmetic industry by increasing the customer experience through virtual try-ons, personalized recommendations, and skin analysis. Many popular brands, like L'Oreal and Maybelline, use AR to boost engagement, reduce returns, and increase sales.

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Also, augmented reality has played a crucial role in developing e-commerce platforms by providing real-time product visualization, personalized recommendations, and data-driven customer insights. Implementing AR and AI in the beauty industry also helped brands opt for sustainable practices, tailored approaches, and interactive measures.