Technology
“Search, Not Discounts, Decided Amazon Prime Day 2026’s Beauty Winners: Market Defense Report”
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4 months agoon
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SEATTLE, July 8, 2026 /PRNewswire/ — One in four consumers purchased beauty or cosmetics during Amazon Prime Day 2026, and most of them compared prices with Walmart. Market Defense’s Annual “THE BEAUTY POWER PLAYERS: Amazon Prime Day June 2026 Report” uncovers what drove shoppers to Amazon’s earliest Prime Day in five years, and how strategic deal shopping reshaped how beauty brands competed for the cart.
“Prime Day 2026 had a clear message for the beauty industry: shoppers arrive knowing exactly what they want — and increasingly, what they want is prestige. The Power Players this year rewrote the rules — prestige won big, with Armani Beauty claiming the top fragrance spot and Tarte unseating Maybelline in makeup. K-beauty dominated skin care, with medicube commanding nearly 16% share. This report gives you the power players, the category shifts, and the moves behind the brands that made Prime Day their biggest moment of the year.” —Vanessa Kuykendall, Chief Engagement Officer, Market Defense
A record event, with a new rhythm
This year, Prime Day ran June 23 to 26, the earliest start in the event’s history and the first June Prime Day since 2021. The numbers tell the story:
The four days surrounding Prime Day 2026 shattered U.S. e-commerce records, reaching $26.4 billion — surpassing the combined Black Friday and Cyber Monday total of $26.05 billion from November 2025.Prime Day posted 9.3% YoY growth in 2026, a significant deceleration from last year’s 30.3% surge — a sign the event is maturing. As more retailers run competing sales events during the same window, Amazon’s dominance is steady but no longer explosive.Beauty ranked 4th in cart share at 26%, up from 25% in 2025.Prime Day drove a +71% surge in beauty search volume during the event week, rising from 102.4M to 174.8M searches.The Beauty shopper was harder to impress this Prime Day. Search was roughly flat YoY (-4%), click rate dropped from 34.7% to 30.4%, and purchase rate fell from 5.0% to 4.5%.Prestige beauty is winning on Amazon. Tarte unseated Maybelline at #1 in makeup brand share of sales for the first time, Armani Beauty claimed #1 in fragrance, and professional brands swept the hair care ranks. Categories that were once dominated by mass brands are now battlegrounds for prestige.
Who shopped? Seasoned consumers showed up with a plan
Prime Day 2026 was a low-ticket, high-volume event, and the shopper had a Walmart tab open.
Suburban high-income women over 45 made up 51% of all buyers, with the 65+ group alone at 31%, up from 29% last year.Deal satisfaction dropped to 59%, down from 68% last year. Shoppers came in with sharper expectations and left with a more critical eye.69% of items sold for under $20, while just 3% were priced above $100.Average spend per item: $23.23, down from $24.59 last year. Average household spend: approximately $143, with the average order at roughly $47.Shoppers came armed with a price comparison. 41% placed 3 or more separate orders, and 53% compared prices at Walmart and Target before buying on Amazon — while 49-50% cross-shopped Walmart throughout the entire event.
Fierce competition fueled the frenzy
Prime Day was not the only game in town. Nearly every major retailer ran a parallel event, creating the most concentrated deal week in recent retail history:
Walmart: the weeklong Walmart Deals event (June 22 to 28) pulled roughly half of Prime Day shoppers (49 to 50%) into cross shopping.Target: Target Circle Deal Days ran head to head with Prime Day (June 23 to 26) and engaged 32% of Prime Day shoppers.TikTok Shop: Deals For You Days stretched June 17 through July 2, its longest summer event yet, with discounts up to 65% on peak days that landed squarely on Prime Day.Ulta Beauty: the Big Summer Beauty Sale ran June 19 through July 11 with up to 40% off across makeup, skin care, hair, and fragrance. The beauty retailer cheekily titled their promo code “PrimeTime.”
Beauty’s winners were built on search
Branded search is gaining ground. One in five estimated beauty purchases on Prime Day 2026 started with a brand name search — up from 17.4% a year earlier. Shoppers increasingly arrive knowing exactly what they want.
For beauty brands, that shift in Search behavior changes everything about how deals are planned, paced, and promoted.
“The single most searched beauty term on Prime Day was the brand name “medicube”. Not sunscreen, not mascara, a brand. For as long as I’ve done this work, generic terms owned the top of search and brands fought for position underneath them. That flipped this year, and I don’t believe it flips back. Put that next to growth cooling from 30% to 9% and the message is uncomfortable but clear: Amazon is done growing your business for you. The meaningful growth is now share you take from a competitor, by name, because the shopper typed yours instead of theirs.” —Dave Karlsven, SVP, Partnerships & Growth at Market Defense.
This Year’s Beauty Power Players:
Medicube held the #1 overall beauty spot for the second consecutive Prime Day, growing share from 9.3% in 2025 to 13.23% in 2026.Medicube is also the #1 branded search term in skincare YTD at 1.99 million monthly searches, up 47.6% from last year.K-beauty is no longer a niche win, it’s a search-wide movement. Korean beauty brands captured 10.5% of all beauty search during Prime Day 2026, up from 6.5% in 2025, and drove nearly 19% of the entire Prime Day beauty search lift.Two ingredient-led skincare brands broke into the overall top 10 best-selling beauty brands for the first time at Prime Day 2026: Anua and The Ordinary.Value beauty found an opening in hair care. Native Coconut & Vanilla Shampoo and Conditioner Set claimed the #1 spot, displacing Olaplex, which held the position last year.Men’s hair health is now a dominant search story. Minoxidil for men was the #1 branded search term in hair care during Prime Day 2026, pulling 1.21 million monthly Amazon searches YTD, up 23.5% from last year.Eyes led makeup this Prime Day. Six of the top 10 best-selling makeup products were eye products, with mascara the #1 non-branded search term and lash clusters the #2, pulling 1.4 million and 1.79 million monthly Amazon searches respectively.Tarte Cosmetics placed two mascaras in the overall beauty top 10 and a concealer in the makeup top 10 — three products across two top 10s in two different formats, the broadest single-brand product presence of any makeup brand this Prime Day.Sol de Janeiro’s Cheirosa 62 claimed the #1 best-selling fragrance on Amazon for the third consecutive Prime Day, placing two products in both the fragrance and overall beauty top 10 simultaneously.Men’s fragrance owned the Prime Day leaderboard. Nautica, Afnan, and RASASI claimed 3 of the top 10 fragrance best sellers, up from just 1 in 2025, a shift that tracks a global category growing nearly 9% annually, with 62% of men aged 25-40 now calling fragrance a daily essential.
Why did some brands win while others watched?
Prime Day 2026 was harvest time, not planting time. The winners planted in the weeks and months before the event, building demand off Amazon and investing in search visibility, then harvested on day one when traffic peaked.
Bidding wars got brutal: some category cost per click rates hit $60 during the event.AI-referred traffic jumped 89% YoY and converted 40% better than email or paid search.Brands that waited for traffic to come to them watched it go somewhere else.
“Prime Day 2026 reinforced that the cost of growth on Amazon continues to rise. With U.S. e-commerce sales surpassing $26 billion during the event, brands faced higher advertising costs, greater promotional intensity, and increased pressure on margins. The opportunity for the rest of 2026 isn’t simply to spend more, it’s to spend smarter, allocating capital toward highest-return products and operating Amazon as an integrated business rather than a collection of disconnected functions. Efficiency has become one of the most durable competitive advantages in today’s marketplace.” —Karan Raturi, Chief Operating Officer at Market Defense
Some brands already found that balance during Prime Day 2026.
“A big takeaway from this Prime Day was that momentum compounds — brands that came into June having built consistent growth through Spring translated that baseline into something remarkable: doubling or even tripling their pre-event growth rate. That kind of amplification doesn’t happen by accident. What separated the winning brands was how they prioritized the event, focused discounts on hero skus at the same depth or deeper than last year — at a minimum of 25% off — and leveraged an omni-channel approach prior and during the event. At Market Defense, we worked with our brands on TikTok shop, influencer and affiliate marketing programs that delivered 7-10X ROAS, email, social and PR tactics that drive discovery and demand in the run up to and during Prime Day. 60% of our entire portfolio activated some form of off-Amazon marketing for the event. Building the right omni-channel strategy is the right foundation for our ads team to build upon – delivering a boost in ad sales, more efficiently, without overbidding and keeping TACOS in check on par with last year.” — Amy Rudgard, SVP, Client Strategy at Market Defense
The full findings, category by category, are available now in Market Defense’s complete “THE BEAUTY POWER PLAYERS: Amazon Prime Day June 2026 Report”: Amazon Prime Day June 2026 Report“
About Market Defense
Market Defense is a leading digital commerce platform and commerce media agency, helping the world’s most ambitious consumer brands accelerate growth across today’s most important marketplaces and digital commerce channels. As a strategic growth partner, the company delivers seamlessly connected marketplace operations, retail media, paid media, social commerce, influencer marketing, and full-funnel growth solutions across Amazon, TikTok Shop, Walmart, Google, Meta, and other leading commerce platforms. With a global operating model spanning every major commerce region, Market Defense enables brands to launch, scale, and optimize their marketplace businesses through a single, integrated partner.
Founded in 2017 and headquartered in Seattle, Market Defense and its subsidiaries partner with over 100 of the industry’s most recognized and fastest-growing brands, including SLIP, Guthy-Renker, Davines, Lattafa, Phlur, Neal’s Yard Remedies, Donnamax, Warner Bros., Grown Alchemist, and Viking Culinary. By combining deep marketplace expertise, proprietary technology, and data-driven execution, Market Defense enables brands to unlock sustainable, profitable growth while delivering a seamless consumer experience across every stage of the digital commerce journey.
Commerce, seamlessly connected.
For more information about Market Defense and its suite of services, visit https://marketdefense.com/
Media Contact: Kayla Clayton
Director, Enterprise Marketing
Kayla.Clayton@marketdefense.com
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SOURCE Market Defense LLC
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Technology
U.S. News & World Report Reveals the 2027 Best Places to Retire
Published
56 minutes agoon
October 27, 2026By
Affordability is a top priority for attendees as Midland, Michigan, holds No. 1 spot.
Summary
Midland, Michigan, is the No. 1 Best Place to Retire for the second year in a row.Affordability is the most considered factor when choosing a place to retire in 2027.Florida and Texas dominate the top 250 Best Places to Retire, offering a number of affordable and retiree-tax friendly locations.
WASHINGTON, Oct. 27, 2026 /PRNewswire/ — U.S. News & World Report, the global authority in rankings and consumer advice, today revealed the 2027 Best Places to Retire in the United States.
Midland, Michigan, retained the No. 1 rank for the second year in a row. Midland scored high in affordability and retiree taxes, helping it to lock in the top spot.
“Retirees are seeking a place that gives them a sense of security and comfort as they live out their golden years,” said Megan Wood, assistant managing editor, home services and real estate. “Whether that comfort prioritizes scenic nature spots, access to multi-cultural experiences, or everyday affordability, places like Midland, Michigan, offer financial safety while still providing a good quality of life.”
Homosassa Springs, Florida, came in at No. 2 due to strong scores in affordability, 55+ population growth and retiree taxes. High performance for, quality of life, retiree taxes, affordability and quality of life resulted in Weirton, West Virginia, placing No. 3 on the list.
U.S. News adjusted its scoring weights for the 2027 rankings to mirror a growing concern for affordability in America. This resulted in multiple double-digit jumps in the top 25, including Paducah, Kentucky (No. 8), ascending into the top 10 for the first time.
“It’s no secret that affordability is top of mind for Americans this year, which is why U.S. News updated its weighting criteria to better align with what retirees prioritize,” Wood said. “The 2027 rankings reflect key metrics used to highlight the places that best suit retiree needs.”
U.S. News evaluated more than 850 U.S. cities – publishing the top 250 places – based on how well they meet American retirees’ expectations against measures including quality of life, affordability, healthcare, retiree taxes, job market, and population and migration for retirees aged 55 and older.
The six measures factored into this year’s rankings were weighted based on a public survey of individuals across the U.S. who are at or approaching retirement age (45 and older) to find out what matters most to people when they’re considering where to retire. Resources include federal, state and local data provided by Applied Geographic Solutions, which includes data sourced from the FBI’s Uniform Crime Reporting program, Bureau of Labor Statistics, Bureau of Economic Analysis and U.S. News’ Best Hospitals rankings. To learn more about how the rankings are determined, read the Best Places to Retire methodology.
Best Places to Retire is part of U.S. News’ Real Estate section, which provides rankings and tools to help individuals navigate the housing market, including home value estimates to working with an agent.
2027 U.S. News Best Places to Retire – Top 10
*See the full rankings here.
Midland, Michigan Homosassa Springs, Florida Weirton, West VirginiaThe Woodlands, TexasSpring, TexasRancho Rio, New Mexico Altoona, PennsylvaniaPaducah, KentuckyLynchburg, Virginia Palm Coast, Florida
For more information on Best Places to Retire, explore Facebook, LinkedIn, Tik Tok, Instagram and X using #BestPlacesToRetire.
About U.S. News & World Report
U.S. News & World Report is the global leader for journalism that empowers consumers, citizens, business leaders and policy officials to make confident decisions in all aspects of their lives and communities. A multifaceted media company, U.S. News provides unbiased rankings, independent reporting and analysis, and consumer advice to millions of people on USNews.com each month. A pillar in Washington for more than 90 years, U.S. News is the trusted home for in-depth and exclusive insights on education, health, politics, the economy, insurance, personal finance, travel, automobiles, real estate, careers and consumer products and services.
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SOURCE U.S. News & World Report, L.P.
Technology
IBM Introduces Identity and Control for AI Agents, Securing Frontier Intelligence for the Enterprise
Published
56 minutes agoon
October 27, 2026By
Enterprises are deploying agents faster than they can verify them. HashiCorp Vault uses Agent Identity to give each agent a governed identity Verified agents still need limits on access. Vault extends its established secrets management to AI agents, built to enforce least-privilege access and enable real-time revocation when an agent attempts an unauthorized action Enterprises can’t scale agents they can’t see, test or account for. IBM watsonx Orchestrate is designed to unify discovery, containment, and evaluation across Amazon Bedrock, Microsoft Foundry and Google Gemini
ATLANTA, Oct. 27, 2026 /PRNewswire/ — At TechXchange 2026, IBM (NYSE: IBM) is announcing new capabilities to help developers, IT and security teams put AI agents to work across business systems with clear authority and accountability. IBM brings together agent discovery, verified identities, access controls and performance evaluation to help organizations understand who owns each agent, control what it can access, and trace its actions across existing applications and infrastructure.
According to Gartner, by 2028 the average Fortune 500 enterprise will use over 150,000 AI agents. But only 13% of organizations believe that they have the right AI agent governance in place [1]. Persistent credentials, unclear ownership and disconnected controls make it harder to govern agents as they interact with other agents, invoke tools and act across teams, platforms and clouds.
“The winners in enterprise AI are changing how their business runs, not simply adding more AI to it,” said Dinesh Nirmal, Senior Vice President, IBM Software. “For agents to take on real work across the systems a company depends on, it requires an AI operating model – one that connects agents to the business’s data, applications and infrastructure and runs them with the same discipline as its most critical systems. Build trust and control into that model, and agents stop being a technology and become a way of doing business.”
Today’s announcements extend IBM’s portfolio to deliver an AI operating model of four essential systems working together: agents, data, automation and hybrid infrastructure. This starts with the trust and control every agent needs – a verified identity, only the access it needs, and one place to discover, secure and evaluate agents regardless of where they were built.
Extending HashiCorp Vault to AI agents
HashiCorp Vault manages the secrets and credentials that applications and services use to access business systems. It provides that control through centrally managed secrets, automated rotation for supported credentials, and dynamically generated credentials that expire or can be revoked. These capabilities help reduce the time exposed credentials remain usable and limit access to the permissions configured for each role.
HashiCorp Vault already secures non-human identities for organizations including ABN AMRO, Adobe, athenahealth, BBVA, BlackRock, Canva, Duke Energy, Expedia, London Stock Exchange, Starbucks, Swiss Federal Railways and Target, across systems that process billions of dollars in transactions [2]. HashiCorp will now extend those capabilities to AI agents, issuing secured, short-lived credentials that limit each agent to what it needs.
Establishing agent identity and accountability
AI agents are a growing class of non-human identity, alongside applications and services. As they begin acting across business systems, enterprises need a clear record of who owns each agent and what authority it has been granted. HashiCorp is combining governed agent identity with credential controls to help organizations delegate work with defined authority and accountability.
When used with HashiCorp Vault, Agent Identity establishes the authoritative record for each agent, such as who owns it, its lifecycle status and the authority it has been granted. Built to extend existing identity and security investments, it shares relevant identity and authorization context with Vault’s credential controls – ultimately enforcing least-privilege access and enabling real-time revocation when an agent attempts an unauthorized action.
Controlling agent credentials and access
Identifying an agent is only the start. Enterprises also need to control the credentials it uses to reach databases, applications and cloud services – and how long those credentials remain valid. As agents invoke tools and act across business systems, their credentials become a critical security boundary. An agent with a long-lived, overprivileged credential can put systems and data at risk if it’s compromised or acts outside its intended task. Enterprises need to establish what each agent’s job is, limit the access it receives and revoke that access when circumstances change.
These controls extend beyond initial authentication. If an agent attempts to retrieve information or perform actions outside its approved permissions, the access can be denied and session revoked in real time to prevent unauthorized activity. Vault’s short-lived credentials and least-privilege controls can further restrict what an agent accesses and the duration of those permissions.
Additional capabilities include:
Vault 2.2 gives agents their own secured accounts, automatically renews their credentials and incorporates post-quantum encryption for quantum-era threats. Secure Hub (public preview) gives companies centralized visibility across their Vault environments to make it easier to understand operational health, usage and security resources.
At TechXchange, client speakers will share how they use Vault to secure enterprise applications, workloads and AI agents
athenahealth: Automating certificate management with Vault’s PKI engine. Albert Einstein College of Medicine: Applying IBM Verify and Vault to AI agent identity, just-in-time access, dynamic secrets and auditability. Optum: Using Vault Radar to detect exposed secrets and Boundary for just-in-time, identity-based access. Seven-Eleven Japan: Centralizing and encrypting secrets with Vault Enterprise and detecting hardcoded secrets with Vault Radar. Yum! Brands: Building an identity security platform with IBM Verify, with a look ahead to machine identities and secrets management.
“AI presents extraordinary opportunities to accelerate biomedical research and discovery, but realizing its potential requires a foundation of security, trust, and responsible governance,” said Shailesh M. Shenoy, Assistant Dean for Information Technology at Albert Einstein College of Medicine. “In my experience, technologies such as IBM Verify and HashiCorp Vault can play an important role in helping organizations establish the identity, access, and security controls needed to innovate with confidence.”
Managing agents across platforms
Identity tells organizations what an agent is. But they also need to see every agent they have, wherever it was built. IBM watsonx Orchestrate works across the AI ecosystem, not inside a single vendor’s platform, to give organizations one place to discover, secure and evaluate their agents. Capabilities include:
Discover (tech preview): Organizations can’t govern agents they don’t know exist. Orchestrate connects to platforms such as Amazon Bedrock, Microsoft Foundry and Google Gemini to find agents built in third-party environments, so teams can see and manage agents instead of adding them manually. This capability also extends to models and MCP servers. Contain (tech preview): One rogue agent can disrupt others and spread mistakes across the business. Orchestrate now runs agents in isolated sandboxes so a rogue agent can’t interfere with others. Teams also now have access to a kill switch to shut down any agent. Evaluate: Agents that aren’t tested and tracked can quietly drift off course and increase costs. Teams using Orchestrate can now test the quality, accuracy and compliance of agents, models and MCP servers before deployment, then monitor them in production. Built-in cost tracking shows each agent’s model and token use, so teams can spot what’s driving spend and fix it.
Orchestrate also works with Vault’s credential controls and Agent Identity to establish what each agent’s job is, govern its authority and enforce least-privilege credential access. Together, these controls help organizations authorize and audit agent actions and rapidly revoke trust and credentials when risk changes.
Connecting agents to the business
Once agents are authorized to use a company’s APIs and tools, they need to know what already exists, how systems connect, what can be reused safely and what their actions could affect. IBM Integration Intelligence Hub is built to provide that knowledge through its Unified Context Engine, so agents can fix problems like stuck messages or deploy an API using what’s already in place. Skills, approval policies and audit controls keep those actions in check. Instead of rebuilding for AI, organizations can put agents to work on the systems they already depend on.
Scaling agents with NVIDIA
Agent Identity and HashiCorp Vault integrate with NVIDIA OpenShell secure runtime software, the foundation of the NVIDIA OpenShell Architecture. Together, they pair a protected environment for agents to run in with a verified identity and short-lived credentials for every agent, so each action can be traced, limited and reviewed.
“Businesses need enforceable control over how agents operate and what they can access,” said John Fanelli, vice president, enterprise software, NVIDIA. “Our work with IBM combines NVIDIA OpenShell’s policy-governed runtime with Agent Identity and HashiCorp Vault to help enterprises scale AI agents with secure execution, verified identities and tightly scoped access to business systems.”
Responding to Emerging Security Threats
When new vulnerabilities are discovered, enterprises must quickly identify affected systems, determine required changes and deploy fixes without disrupting critical operations. In complex environments, this process often involves multiple teams, tools and processes.
IBM Concert integrates observability, optimization, incident management and security across applications, infrastructure and networks. With AI-powered insights and proof of exploitability, Concert helps teams to identify high-risk vulnerabilities, assess operational impact, and coordinate responses. These capabilities also help organizations address performance, manage costs and maintain resilience in hybrid environments.
HashiCorp Terraform provides an infrastructure context and governed workflows for change implementation. New features now generally available and in public preview, including Terraform policy, Terraform Developer Portal and Terraform remote MCP server, enable developers and AI agents to access approved configurations and implement infrastructure changes through established controls. Terraform powered by Infragraph also helps teams understand infrastructure relationships and dependencies for more informed decisions.
Together, these capabilities enable organizations to progress from identifying vulnerabilities to implementing and verifying remediation, while optimizing the visibility and governance essential for enterprise operations.
A comprehensive system intelligence and change orchestration layer for IBM Z
IBM Z Atlas maps a client’s entire z/OS stack across infrastructure, middleware, and applications, and then uses that intelligence to address the manual effort of tasks like patch management, regulatory response, and sharing system knowledge across teams, from systems programmers to application developers. Atlas addresses the leading cause of unplanned z/OS outages – changes that aren’t proven to be safe – by mapping how a change impacts the z/OS stack and testing and validating it. This design (in tech preview) accelerates clients’ modernization efforts by keeping experts in control and giving practitioners, in operations or development, the same shared Z system visibility to reduce risk.
Availability
HashiCorp Vault 2.2, Agent Identity, watsonx Orchestrate evaluate capabilities, IBM Concert, and HashiCorp Terraform policy are generally available. Secure Hub, Terraform Developer Portal, Terraform remote MCP server, and IBM Z Atlas are in public preview. IBM Integration Intelligence Hub and watsonx Orchestrate discover and contain capabilities are in tech preview.
Statements regarding IBM’s future direction and intent are subject to change or withdrawal without notice and represent goals and objectives only.
Learn more
IBM TechXchange is IBM’s annual conference for developers and technology practitioners and brings together nearly 6,500 attendees from 85 countries. This year, the event incorporates HashiConf to bring together the HashiCorp community with practitioners from across IBM, Red Hat and Confluent. Attendees can choose from more than 1,000 sessions and experiences, including 180 hands-on labs, 260 client-led sessions and more than 50 certification exams. Speakers include American Airlines, Bradesco, Citi, CVS Health, Deutsche Bank, DoorDash, Hertz, and US Bancorp who will share how they are making AI enterprise ready.
Session livestream and replays will be available here: ibm.biz/txc26-livestream.
Supporting Materials
Strengthen security for agentic AI with new Vault, Verify, Boundary, and Secure Hub capabilities IBM Agent Identity now generally available: Building Trust for the Agentic Era Vault Enterprise 2.2 advances identity security, PKI, and cryptoagility Announcing the public preview of Secure Hub: govern Vault at scale IBM watsonx Orchestrate advances AI agent management with new capabilities IBM Integration Intelligence Hub gives AI the context to act, not just access IBM Concert platform advances the path to cross-domain agentic IT operations Terraform advances infrastructure lifecycle management for the agentic era Introducing IBM Z Atlas: Change Intelligence for IBM Z
[1]: Gartner Identifies Six Steps to Manage AI Agent Sprawl
[2]: HashiCorp Vault client stories
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Media contacts:
Sarah Benchaita
IBM
sarah.benchaita@ibm.com
Kate Lehman
IBM
Kate.Lehman@ibm.com
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Technology
Three Blind Spots Leave Industrial Companies Exposed to Critical Mineral Shortages
Published
56 minutes agoon
October 27, 2026By
Boston Consulting Group Finds Industrial Companies Underestimate Their Critical Mineral Exposure, Which Also Limits Their Access to Public CapitalDemand for Key Minerals Is Projected at 120% to 250% of Forecast Supply Through 2040An Estimated $3.5 Trillion of Products Depend on Gallium, a “Mosquito Mineral” Traded in a Market Under $350 Million a YearSome Governments Have Deployed Less Than 10% of Their Critical Minerals Funds
BOSTON, Oct. 27, 2026 /PRNewswire/ — Industrial companies are underestimating their exposure to critical mineral shortages and missing a strategic opportunity as a result, according to new analysis from Boston Consulting Group (BCG). Three blind spots in the metrics that companies rely on hide where the risk sits, including what BCG calls “mosquito minerals,” so small by traded value that they never reach a risk register.
These are among the findings of Why Critical Mineral Shortages Are a CEO Issue, a BCG report released today. BCG’s proprietary model projects demand for key inputs, including rare earths, graphite, copper and lithium, at roughly 120% to 250% of forecast supply through 2040.
“Most industrials track exposure through spend and direct supplier data, and the minerals that can stop a production line are often the ones they spend almost nothing on,” said Tycho Möncks, a BCG managing director and partner and a coauthor of the report. “The question for CEOs and boards is not whether their company is exposed. It is. The question is whether they intend to live with that exposure or turn it into an advantage.”
Small Markets Can Stall Large Industries
Companies often start their risk assessment with the bill of materials, which points them toward high-volume metals such as copper and lithium. Mosquito minerals fall outside that view. Their traded value is tiny, but the value chains that depend on them are not.
Rare earths. The rare earths used in a fighter jet are worth less than the paint that coats the plane.Gallium. The global market is worth under $350 million a year, with production of only about 900 tons, yet BCG estimates about $3.5 trillion of final products depend on it.Arsenic. The upstream market is about $50 million worldwide, yet a single producer supplies roughly 60% of the ultra-high-purity grade used in 5G and 6G infrastructure, data center optics, radar systems, and defense electronics.Byproduct supply. Gallium, germanium and arsenic are recovered as byproducts of other mining and industrial processes, so the host metal’s market sets their supply. Even a sharp price spike may not bring new production.
Exposure Hides Below Tier One Suppliers
A company that buys almost no critical minerals directly can still be acutely exposed because minerals arrive embedded in motors, magnets, power modules, lasers and sensors. They also sit in the tools and processes used to make those components, from crucibles and catalysts to dies and the capital equipment itself.
Turbine blades, engine blocks and structural aerospace components, for example, are machined with cutting tools made of tungsten carbide bonded with cobalt. A manufacturer that has never bought either metal directly can still see production stop if those tools run short, a dependency that appears on no bill of materials.
Companies also tend to map where critical minerals are mined, but for some minerals the bottleneck is processing, not production. A map of where assets sit and a map of who owns them can look very different, so a change of supplier that looks like diversification may leave a company’s exposure unchanged.
Public Capital Is Committed but Largely Unspent
The three blind spots also lead to a strategic miss. The International Energy Agency reports that public finance commitments to critical minerals in advanced economies reached around $65 billion in 2025, more than four times the 2023 level. BCG’s review of government-backed vehicles found the flagship instruments barely deployed, with some countries having spent less than 10% of their allocated capital and others nothing.
These vehicles are designed to draw in private capital, and offtake requirements are typically the main eligibility gate. BCG argues that companies without a clear view of their own exposure cannot make a credible commitment, and so cannot qualify. The funds are not free money: they carry conditions such as reporting obligations and localization requirements, and they represent only about one tenth of the capital needed through 2040. But for industrial companies, BCG says, they are a way to build a competitive advantage.
Several of the companies that have reframed their approach and tapped public capital are industrial companies and trading firms, not miners, and BCG found that in each case the CEO and executive team led the process of identifying and correcting their blind spots.
“These blind spots have a cost beyond risk. The money is there, but it comes with offtake requirements, and a company cannot make a credible commitment without knowing its own exposure,” said Karthik Valluru, a BCG managing director and senior partner who coauthored the report. “Mapping that exposure properly is where the opportunity starts.”
Download the publication here:
https://www.bcg.com/publications/2026/critical-minerals-risk-blind-spots
Media Contact:
Bruce Wraight
wraight.bruce@bcg.com
About Boston Consulting Group
Boston Consulting Group bridges the gap between ambition and outcomes for the world’s leading companies and organizations. We are built for this era of unprecedented change — bringing strategic clarity rooted in over 60 years of deep domain knowledge, combined with applied AI shaped by our practitioners. BCG works shoulder-to-shoulder with CEOs across industries and geographies to deliver transformative impact at scale: stronger returns, transferred capabilities, and change that sticks. For more information, visit bcg.com.
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SOURCE Boston Consulting Group (BCG)
U.S. News & World Report Reveals the 2027 Best Places to Retire
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