The lipstick effect spreads

Prestige beauty sales are outperforming the wider FMCG category as consumers treat themselves to small, luxury beauty buys, new findings suggest.

Why beauty brand resilience matters

Many consumer goods categories have experienced volume declines as the cost-of-living crisis forces consumers to cut back on non-essential spending; at the same time many are trading down from their usual brands.

But data from Circana, an advisor on the complexities of consumer behaviour, suggests that beauty brands in the UK are proving resilient – evidence of the so-called “lipstick effect”. 

Takeaways 

• Prestige beauty products grew value sales by +13.5% and unit sales by +10%, in the year to the end of August 2023 compared to the same period in the previous year, to £1.4bn.
• Make-up value sales grew by +17% and unit sales by 11% (January to end August 2023) compared to the same period last year, buoyed by the wide availability of influencer tutorials on TikTok and Instagram.
• Concealers grew value sales by +35% and blushers by +60% in the last year, with unit sales up +26% and +46% respectively.

 Key quote

“In what seems like an act of pure defiance at the sacrifices they are making elsewhere in their shopping, consumers have extended the small lipstick treat that we typically see during a downturn to include other beauty segments such as skincare, make-up and haircare” – Emma Fishwick, Account Director for Prestige Beauty at Circana. 

Sourced from Circana