Market growth slows in premium beauty
Growth in spending on premium beauty has slowed, according to The Premium Market Report 2013.
The report said that growth in the sector was at 5% in 2012, down from 11% the year before. This is the first time that year-on-year growth has slowed during the financial crisis, as women have continued to treat themselves to small luxury items during the difficult economic times.
The report, conducted in collaboration with YouGov, found that 35% of women aged 25-34 and 33% of those aged 35-44 stated they were more careful about how much they spent on premium beauty products. A third of women in the 35-44 bracket also admitted to buying less than they used to, and a tenth of 25-34 year olds surveyed are trading down to cheaper products.
Author of the report Imogen Matthews said, “The middle-aged groups are most affected by the stagnant economic situation and are more careful about how much they spend while buying less than they used to.
“They also represent the core demographic buying group for premium brands, who need to work harder than ever to win them over in the face of stiff competition.”