Beauty spend set to bounce back to 2019 levels by 2023

Consumer spend in the UK health and beauty market is set to return to 2019 levels by 2023, according to new research.

Like many markets, health and beauty declined in 2020, with spend falling 7.9%, as consumers stayed at home with fewer reasons to buy items such as make-up and fragrance. 

However, the market it is forecast to recover quickly. Spend rose 4% year-on-year in 2021 and the sector is expected to grow at a compound annual growth rate (CAGR) of 2.8% between 2020 and 2025, according to new figures from analyst Globaldata.

What are the trends driving growth in the beauty market?

Beauty is renowned for being a resilient sector in times of restricted budgets, often referred to as “the lipstick effect”. 

As such, beauty is expected to be the faster growing of the two sectors in the health and beauty market, as consumers continue to value self-care and maintain regimens they started during long periods at home, boosting spend on haircare and skincare. 

In addition, innovation online will support growth with livestreaming events appealing to young consumers and a growing amount of beauty content on social media platforms, particularly TikTok, driving purchases.

Check out the biggest TikTok beauty trends of the year here.

Sustainability is also now playing a bigger part in beauty buying decisions. 

This means salons, spas and retailers need to ensure they are offering products that are eco-conscious, considering how items are packaged and sold, as well as the buiying environment they create. 

Package-free items are also becoming more widely available and beauty manufacturers must consider sustainability and the environment when implementing any new processes such as fast delivery options to work towards changing consumer needs, said the report.

How are lifestyle changes impacting beauty spend?

Globaldata also noted that the rise in flexible working means the essential nature of wearing make-up daily is declining.  

Many consumers are choosing to wear minimal make-up on days spent working from home and are opting to wear lighter makeup on days out of the house, stripping back their make-up routine and using fewer products.