In 2020, the UK prestige beauty industry experienced a significant downturn due to the impact of the pandemic. Sales of luxury beauty products witnessed a sharp decline, with lipstick being one of the hardest-hit categories. The shift in consumer behavior, driven by lockdown restrictions and limited access to physical stores, resulted in a 24% decrease in overall sales, amounting to a market value of £2 billion.
While brick-and-mortar shops suffered a 44% drop in sales, online purchases surged by 47%, constituting 44% of all prestige beauty sales in 2020. The resilience of certain categories stood out amidst the challenges faced by the industry. Fragrance, in particular, showed strength with a modest 17% decline in sales and notable growth during the latter part of the year, positioning it as a popular gifting option.
Skincare also saw notable shifts in consumer preferences, with anti-acne serums and luxury hand soaps experiencing increased demand. Despite a 21% decline in overall sales, skincare remained a focal point for many consumers seeking self-care and routine maintenance during uncertain times. In contrast, makeup took a severe hit, with lip products suffering a 50% decrease in sales as mask-wearing became the norm.
As the beauty industry adapts to the new normal post-pandemic, it will be interesting to observe how consumer trends continue to evolve and shape the market. The resilience of certain categories and the surge in online sales signal a shift in purchasing behavior that may have long-lasting effects on the industry.
To learn more about the impact of the pandemic on the beauty industry in the UK, click on the following links: Cosmetics Business and NPD.
