The US Court of Appeals for the DC Circuit has cleared the path for a potential nationwide ban on TikTok, sparking significant concern among cosmetics and personal care product manufacturers and suppliers. The ruling upholds the Protecting Americans from Foreign Adversary Controlled Applications Act, which requires TikTok’s Chinese parent company, ByteDance, to divest ownership by January 19 or face a complete ban.
This decision could disrupt an industry that has increasingly relied on TikTok as a critical marketing and sales platform, from influencer marketing to TikTok Shop. We spoke to Sunny Zheng, an Analyst at market research firm Coresight Research, for greater insight into the potential impact of Tik on US cosmetics and personal care product manufacturers and suppliers.
Legal background and controversy
The DC Circuit’s ruling concluded that the TikTok ban does not violate the First Amendment, citing national security concerns over the platform’s Chinese ownership and data collection practices. The court emphasized the government’s responsibility to address potential threats, stating, “The First Amendment is not a license to commit espionage,” according to Kirk McGill, First Amendment expert at Hall Estill in an analysis from Law360.
However, advocacy groups argue the ban undermines free expression. Kate Ruane, director at the Center for Democracy and Technology, criticized the decision in the Law360 analysis: “Preventing the speech of 170 million people on topics unrelated to national security is not a narrowly tailored way to address these concerns.”
Similarly, according to Law360, Patrick Toomey of the ACLU labeled the ruling “a major blow to freedom of expression online. ”
The case is expected to reach the US Supreme Court, and the incoming Trump administration may shift the federal government’s stance. President-elect Donald Trump, who has expressed support for TikTok in his second term, could influence the platform’s fate.
Impact on the cosmetics industry
The potential TikTok ban looms large over cosmetics brands, particularly smaller companies that have relied on TikTok Shop for cost-effective marketing and sales. Sunny Zheng, an analyst at Coresight Research, explained: “The platform democratized marketing by allowing smaller brands to achieve visibility without large advertising budgets. Losing such a dynamic, organic sales channel could significantly reduce their reach, hinder customer engagement, and increase customer acquisition costs.”
A Coresight Research survey revealed that nearly half of US consumers purchased beauty and related products on TikTok in the past three months. The ban threatens to upend this trend, forcing brands to navigate slower, less community-driven sales cycles.
Strategic adjustments for brands
To mitigate the fallout, cosmetics brands must diversify their social commerce strategies. Zheng recommends alternatives such as Instagram Shopping, YouTube Shorts, and Pinterest, emphasizing that platforms with strong visual storytelling capabilities could help brands maintain their audience.
“Brands should focus on audience demographics, platform engagement potential, and ease of integration with existing e-commerce systems,” she advised.
Additionally, brands are encouraged to strengthen their direct-to-consumer (DTC) websites by investing in enhanced user experiences and personalized recommendations. Live-stream commerce platforms like Instagram Live and emerging players such as Bambuser offer opportunities to recreate the interactive shopping experience once provided by TikTok Shop.
Emerging trends and innovations
The potential ban may catalyze innovation within the industry. “Brands may develop their own AI-driven personalization tools and focus on sustainability initiatives to differentiate themselves,” Zheng noted.
Larger retailers and platforms could also play a crucial role by providing advanced data analytics and marketing tools to help brands adapt.
New platforms such as Discord and Reddit, where niche communities drive product recommendations, may gain traction. Cosmetics brands might also lean into content-driven strategies, using blogs and long-form videos to bolster brand authority.
A turning point for social ommerce
The TikTok ban highlights the fragility of relying on a single platform for social commerce. While the short-term impact on smaller brands may be severe, the industry’s pivot to diversified and innovative strategies could lay the groundwork for a more resilient future.
As the legal battle unfolds, cosmetics manufacturers and suppliers will closely monitor developments to navigate the evolving landscape.
