Sales of prestige beauty products grew twice as fast post-Brexit
Sales of prestige beauty products have grown by 6% following the UK’s decision to leave the European Union, according to new research by global information company the NPD Group.
Sales grew twice as fast at 6% in the three months following Brexit (July to September 2016) compared to just 3% from January to June 2016, the report found.
Researchers discovered the greatest growth was in premium skincare which reported double-digit growth, with sales rising by 32% compared to the same period in 2015, and in comparison to pre-Brexit where the sector only grew by 4%.
London was the area that reported the biggest growth in sales, with the Midlands, the East and the North East demonstrating the strongest sales outside of the capital.
In the three-month period post-Brexit, sales in London increased by 7.3%, representing 30.1% in value of the total prestige beauty market in the UK.
Yorkshire and the North East reported an 8.3% total growth in this period, increasing value sales by 4.3% compared to the same period in 2015, representing 10.8% of the total prestige business.
During this same time period, online sales increased by 34.3% compared to the period July to September 2015 – contributing the most (43.7%) to total prestige beauty growth in this period.
“Post-Brexit there was much uncertainty in the market, but what these figures show is that the demand for luxury and prestige beauty products has been boosted by Brexit,” said Teresa Fisher, senior account manager for NPD UK Beauty.
“We know that shopping in the UK became less expensive for overseas tourists due to the drop in the value of the pound and that the largest growth in the market has been in London and online.”
Fisher added: “This is great news for retailers and manufacturers, both in store and online, and represents a huge opportunity for prestige beauty in the upcoming Christmas festive season.
“However, based on trended insight we do not believe this can be sustained. We have already seen that some manufacturers in the news have increased their pricing so it will be an opportunity to review the future ahead with regards to consumer’s ongoing purchasing habits.”