Consumer cutbacks hit prestige beauty market
The recession has hit the UK’s prestige beauty market as skincare and beauty sales are down 6.4% and 0.6% respectively since May 2011, according to new research.
Consumers reducing their expenditure on premium beauty brands is said to be the reason for the significant decline.
The findings from market analyst The NPD Group revealed that the skincare sector has been the worst hit, with sales falling by 3.9% in value and 6.4% in volume. Premium skincare brands with an average selling price of about £100 are currently experiencing the strongest decline.
Overall beauty sales, however, managed to increase by 2.5% to £106m compared to 2011, despite a sales decline of 0.6%.
The fragrance market has also been hit with the consumer spending cutbacks declining by 0.8%.
Meanwhile, the make-up segment is the only category to record a 9% increase in value compared to the same period in 2011. However, the average selling price is 21% lower than the average selling price of the total prestige beauty market.
June Jensen, director for NPD Group Beauty UK, said: “While the prestige beauty market had been relatively spared by the challenging economic situation, the data ending May 2012 shows a different picture. Our recent research shows the less expensive brands within the prestige beauty market are performing better.”
However, it is not all doom and gloom as Jensen said the UK is set to enjoy a £750m consumer-spending boost in the weeks leading up to the London 2012 Olympic games.
She added: “Beauty prestige brands should do their utmost to ensure they are well prepared for the excitement of residents and tourists alike, and to make sure they also benefit from the spending boost.”