Expert's Opinion

Counterfeit Concerns Threaten Consumer Trust

Only 41% of consumers know that counterfeit beauty products are readily available. Even fewer, 36%, recognize counterfeit skincare items, according to Provoke Insights' research.

Can you spot the fake? Neither can most consumers. Photo: Shutterstock/extarz

Carly Fink, Provoke Insights

The beauty and skincare industry increasingly grapples with the rise of counterfeit goods. The trend threatens consumer trust and undermines brand reputation. While industry professionals understand the ramifications of counterfeiting, do consumers know or care about the issue?

Provoke Insights, a full-service market research firm monitoring beauty and skincare since 2020, sought to better understand this topic. In the ninth wave of the Fall 2024/Winter 2025 study, Provoke Insights surveyed 1,501 Americans, aged 21 to 65, to uncover consumer awareness and behavior around counterfeits.

Counterfeiting in beauty and skincare is fueled by the rise of digital sales platforms, such as e-commerce websites and social media stores, which make it easier for counterfeit goods to reach unsuspecting consumers. While the beauty and skincare industry witnesses an influx of imitation brands on these platforms, many consumers remain unaware that the products they purchase may not be genuine.

Only 41% of consumers know that counterfeit beauty products are readily available (Figure 1). Even fewer, 36%, recognize counterfeit skincare items. In contrast, consumers are far more likely to associate counterfeit products with apparel (61%) or luxury goods (58%).

Most consumers still associate counterfeits with street vendors (38%), viewing them as the primary source of fake goods. However, reality is shifting. Though online channels now rival traditional methods in scale and reach, slightly less than a quarter of consumers know of its availability on e-commerce and social media sites, revealing the difficulty in distinguishing counterfeit products from authentic ones in these environments.

The issue is compounded by the trust consumers place in well-known brands. Over half of skincare shoppers and 42% of beauty shoppers prioritize brand names when purchasing, relying on established names to ensure quality. However, this trust is fragile—the presence of counterfeits in the market risks diluting the reputation of even the most trusted brands. Consumers are cheated out of the quality, effectiveness and transparency they expect from brands.

This creates a challenging environment for growth in an industry driven by creativity and the launch of new products.

Beyond the counterfeit crisis, Provoke Insights’ study highlights several broader trends shaping consumer behavior in the beauty and skincare market.

Seasonality plays a significant role in purchasing patterns. Over nine waves of research, Provoke Insights observed that beauty and skincare purchases peak during spring. These numbers drop significantly in the fall, underscoring the importance of seasonal marketing campaigns.

Demographics shape purchasing habits. Millennials and Gen Z consumers, especially parents who live in urban areas, are the most active skincare buyers. Beauty purchases, meanwhile, skew toward high-net-worth millennial parents. Surprisingly, Generation X and Baby Boomers are less engaged in beauty and skincare purchases, despite concerns about aging skin being particularly relevant to these groups.

Shopping behavior differs between beauty and skincare categories. Personal networks often influence beauty product purchases, with consumers reporting they are more likely to shop in-store and enjoy browsing aimlessly through aisles. In contrast, skincare purchases tend to be more research-driven, with consumers relying heavily on online reviews to make decisions (Figure 2).

Methodology

Provoke Insights conducted a 15-minute online survey among 1,501 Americans between the ages of 21 and 65. The study was fielded in September/October 2024. A random stratified sample and weighting methodology was used to ensure a high representation of the U.S. population (household income, age, gender, geography, ethnicity, and parental status). Results based on this sample have a maximum margin of sampling error of +/- 2.5% at a 95% confidence level. Statistical differences between subgroups indicated in this research were tested at a 95% confidence level. Check the Fall 2024/Winter 2025 page for the latest category research, including beauty and wellness.  

About the Author

Carly Fink is the president and founder of Provoke Insights, a full-service market research firm specializing in branding, advertising, media, and content marketing. Before founding Provoke Insights, she worked at the Harris Poll, J. Walter Thompson, and Grey Advertising. Client experience includes FDA, Dropbox, Andersen Windows, Bank of America, GSK, AIG, Procter & Gamble, USPS, Constant Contact eToro and NY Blood.

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