The beauty market fell by 0.2% in 2015, the first decline in the market since Mintel began reporting on the industry in its entirety in the annual British Lifestyles reports*.
New research from Mintel* finds that certain markets are flourishing as a result of the UK’s two-track recovery. Indeed, as higher earners are feeling better-off, they’re indulging themselves by spending on experiences and enjoying themselves. Holidays, leisure and entertainment are all doing well, while the recession-era "lipstick effect" is fading.
As a result, sales in the beauty and personal care market faded by 0.2% in 2015, falling to £16.88 billion. The research comes as just 17% of consumers today said they would buy themselves a beauty or personal care product as a treat, compared to over a quarter (27%) who said they were most likely to buy themselves a holiday.
The decline of the ‘lipstick effect’ smudges sales of beauty and personal care products, whilst in-salon hair service sales are snipped
The fading of the ‘lipstick effect’ has rubbed off on the beauty market as sales dropped to £16.88 billion in 2015, down from £16.91 billion in 2014. When asked what they would buy themselves as a treat, today just 17% of consumers said they would pick these products. Further, it seems that beauty bargain hunting is hampering the market as one in seven (14%) Brits say they’ve spent less on beauty products and toiletries over the past 12 months.
Particularly damaged by bargain hunting, sales of in-salon hair services have been snipped, falling by 0.3% to reach £7.2 billion in 2015. This comes as consumers are becoming increasingly salon savvy, over two in five (46%) of those who have had hair treatments in a salon chose that salon based on the price of services. There are certain highlights in the sector however, as fashion trends and innovation pique consumer interest. Sales of face colour cosmetics rose by 8% in 2015 due to the increasing popularity of prestige brands.
Additionally, in 2016 a trend towards detoxing and shower beauty treatments is expected to provide a boost to the market. Latest research from Mintel finds that two in five (40%) adults look for vitamin-enriched products when shopping for soap, bath and shower products, rising to half (50%) of 16-24 year old women.
Mintel research finds that the two-track recovery is still very much alive and kicking. Almost four in 10 (38%) of those with a household income of £50,000 or over say they feel better off compared to a year ago, compared to just 16% of those with an income of under £9,500.
Mintel’s ‘British Lifestyles’ report1 tracks spending across all major consumer markets. Overall, the research found that total consumer expenditure in the UK reached £1,126 billion in 2015, representing an increase of 1.7% on 2014. The uplift in spending comes as some are feeling more prosperous: one in four (26%) Brits say they are better off compared to a year ago. Meanwhile, over half (53%) say they’re about the same, whilst one in five (20%) say they are worse off.
1Mintel’s British Lifestyles: Growing Tired of Austerity UK 2016 report is available to purchase priced £2,195.
About Mintel
Mintel is a global market intelligence agency with offices in London, Chicago, Belfast, Kuala Lumpur, Mumbai, Munich, New York, São Paulo, Shanghai, Singapore, Sydney, Tokyo and Toronto.
*Mintel has comparable data for the beauty market going back to 1999, and a 0.2% decline in 2015 is the first time that a fall has been noted.