Jordin DeSenzo & Carly Fink , Provoke Insights06.25.23
Rising inflation has affected all sectors of the market, and consumers are noticing the prices at the register. As prices continue to rise, many skincare brands wonder what it will take to maintain their relationships with their loyal client base.
Provoke Insights, a full-service market research firm and brand consultancy, sought to answer this question. The agency fielded a survey among 1,500 Americans to help understand trends in consumer purchasing. The research explores the impact of inflation on skincare products and provides insight through research on consumers attitudes toward the current market and rising inflation.
It’s no surprise that economic uncertainty is directly affecting shopping habits across all industries including skincare. In fact, out of all current day worries, over half of consumers reported that inflation (63%) and the economy (61%) are their biggest concerns. To compound these worries, consumers say they have noticed price increases in stores such as department stores (63%), drug stores (62%) and superstores/big box stores (56%)—establishments where skincare is sold. As a result, almost two-thirds of consumers are more budget conscious (62%) than they were six months ago.
Despite consumer purchasing concerns during this time of rising inflation, consumers will not hold off on skincare purchases. As a matter of fact, Americans are buying skincare more than in the previous year, with a 12% increase in sales since Fall 2022. About half (44%) of consumers are planning on purchasing skincare in the next three months.
The sales jump may have to do with several factors, including the industry introducing more CBD products, consumers prioritizing skincare routines, and Americans returning to more social routines and events out of the home as the uptick of Covid has subsided.
Compared to fourteen other consumer-facing categories, more Americans care about the quality of skincare (72%) over the price (28%) than any other industry. These industries include sectors such as beauty supplies, fine jewelry, furniture, apparel and electronics.
So why is this good news for the skincare industry? Consumers would not substitute these products for a lower-cost version, even during economic uncertainty. The passion for these products is evident, as consumers are also more likely to purchase skincare products at the same rate (47%) even if a recession occurs. This is more than double other industries (25%). These loyal shoppers tend to have a higher household income and are of the older generations.
So, who are today's overall skincare shoppers? Female Millennials living in the Northeast are the most likely to purchase skincare in the next month. There is also a distinct subset of these purchasers who place an emphasis on quality. These consumers are in affluent households, parents, live in the West and urban areas, and are more optimistic. However, skincare shoppers who are more price-conscious are living in more rural areas. They are older, have a lower household income and tend to be males that live in the Midwest. This could be important in understanding the differences in consumer priorities for marketing different products.
Overall, skincare shoppers enjoy the experience of purchasing items. However, skincare shoppers are still invested in sticking to familiar brands (46%), which may be one of the reasons why the interest in purchasing quality skincare has not decreased. As this cohort is younger, they do prefer shopping online (32%). However, this doesn't mean they dislike browsing in-store. There is an opportunity to focus on point-of-purchase advertising for this audience; they prefer browsing through store aisles (49%) more than those who do not purchase (35%).
Brands should note that DEI and sustainability values are important to these shoppers. Skincare shoppers are invested in switching brands if they do not align with their values (35%) more than non-skincare shoppers (28%). They are also more likely to pay more for sustainable products (27% vs. 20%). When consumers see a brand reflecting their values, they bond more closely with those products.
Skincare shoppers do not have a strong preference for shopping small businesses. This could be attributed to the importance of quality skincare and the hesitation to purchase something that is not absolutely sure to be safe for the skin. Shopping online is a priority for them (32% vs. 23%), which could be helpful in avoiding upcharges.
Skincare buyers also enjoy targeted advertising and take it into consideration when shopping (23%). They also report that advertisements help them choose what products to purchase (24%). These consumers also expect advertising to be creative and entertaining (38%) significantly more than non-skincare shoppers (30%). Influencer advertising could also be beneficial when advertising skincare products, as some shoppers report social influencers as a guide for selecting products they want to purchase (21% vs. 13%).
Since consumer worries about inflation do not appear to be decreasing in the foreseeable future, skincare brands should be focusing on how to keep their customers loyal and happy, despite rising prices. Consumers feel that purchasing skincare products is essential despite their cost, and skincare brands should take advantage of this information.
Marketing skincare products as not only a high-end luxury product, but an everyday luxury product would keep consumers interested in purchasing at the high volume that they are currently. Initiatives such as targeted entertaining advertisements and influencers can support these initiatives. Brands should also keep in mind that skincare consumers are invested in supporting DEI in brands and sustainably sourced products. Communication efforts that promote a brand’s DEI or green initiatives can further increase conversion and loyalty.
Methodology
Provoke Insights conducted a 15-minute online survey among 1,500 Americans between 21 and 65. The study was fielded in April 2023. A random stratified sample methodology was used to ensure a high degree of representation of the US population (household income, age, gender, geography, ethnicity and parental status). Results based on this sample have a maximum margin of sampling error of +/- 2.5% at a 95% confidence level. Statistical differences between subgroups indicated in this research were tested at a 95% confidence level. Check out Provoke Insights for the latest skincare research. Email: info@provokeinsights.com.
Provoke Insights, a full-service market research firm and brand consultancy, sought to answer this question. The agency fielded a survey among 1,500 Americans to help understand trends in consumer purchasing. The research explores the impact of inflation on skincare products and provides insight through research on consumers attitudes toward the current market and rising inflation.
Inflation and Consumer Habits
It’s no surprise that economic uncertainty is directly affecting shopping habits across all industries including skincare. In fact, out of all current day worries, over half of consumers reported that inflation (63%) and the economy (61%) are their biggest concerns. To compound these worries, consumers say they have noticed price increases in stores such as department stores (63%), drug stores (62%) and superstores/big box stores (56%)—establishments where skincare is sold. As a result, almost two-thirds of consumers are more budget conscious (62%) than they were six months ago.
Despite consumer purchasing concerns during this time of rising inflation, consumers will not hold off on skincare purchases. As a matter of fact, Americans are buying skincare more than in the previous year, with a 12% increase in sales since Fall 2022. About half (44%) of consumers are planning on purchasing skincare in the next three months.
The sales jump may have to do with several factors, including the industry introducing more CBD products, consumers prioritizing skincare routines, and Americans returning to more social routines and events out of the home as the uptick of Covid has subsided.
Compared to fourteen other consumer-facing categories, more Americans care about the quality of skincare (72%) over the price (28%) than any other industry. These industries include sectors such as beauty supplies, fine jewelry, furniture, apparel and electronics.
So why is this good news for the skincare industry? Consumers would not substitute these products for a lower-cost version, even during economic uncertainty. The passion for these products is evident, as consumers are also more likely to purchase skincare products at the same rate (47%) even if a recession occurs. This is more than double other industries (25%). These loyal shoppers tend to have a higher household income and are of the older generations.
Who Is Buying Skincare?
So, who are today's overall skincare shoppers? Female Millennials living in the Northeast are the most likely to purchase skincare in the next month. There is also a distinct subset of these purchasers who place an emphasis on quality. These consumers are in affluent households, parents, live in the West and urban areas, and are more optimistic. However, skincare shoppers who are more price-conscious are living in more rural areas. They are older, have a lower household income and tend to be males that live in the Midwest. This could be important in understanding the differences in consumer priorities for marketing different products.
The Shopping Experience
Overall, skincare shoppers enjoy the experience of purchasing items. However, skincare shoppers are still invested in sticking to familiar brands (46%), which may be one of the reasons why the interest in purchasing quality skincare has not decreased. As this cohort is younger, they do prefer shopping online (32%). However, this doesn't mean they dislike browsing in-store. There is an opportunity to focus on point-of-purchase advertising for this audience; they prefer browsing through store aisles (49%) more than those who do not purchase (35%).
Brands should note that DEI and sustainability values are important to these shoppers. Skincare shoppers are invested in switching brands if they do not align with their values (35%) more than non-skincare shoppers (28%). They are also more likely to pay more for sustainable products (27% vs. 20%). When consumers see a brand reflecting their values, they bond more closely with those products.
Skincare shoppers do not have a strong preference for shopping small businesses. This could be attributed to the importance of quality skincare and the hesitation to purchase something that is not absolutely sure to be safe for the skin. Shopping online is a priority for them (32% vs. 23%), which could be helpful in avoiding upcharges.
Marketing Skincare to the Target Audience
Skincare buyers also enjoy targeted advertising and take it into consideration when shopping (23%). They also report that advertisements help them choose what products to purchase (24%). These consumers also expect advertising to be creative and entertaining (38%) significantly more than non-skincare shoppers (30%). Influencer advertising could also be beneficial when advertising skincare products, as some shoppers report social influencers as a guide for selecting products they want to purchase (21% vs. 13%).
Recommendations for Beauty Brand Owners
Since consumer worries about inflation do not appear to be decreasing in the foreseeable future, skincare brands should be focusing on how to keep their customers loyal and happy, despite rising prices. Consumers feel that purchasing skincare products is essential despite their cost, and skincare brands should take advantage of this information.
Marketing skincare products as not only a high-end luxury product, but an everyday luxury product would keep consumers interested in purchasing at the high volume that they are currently. Initiatives such as targeted entertaining advertisements and influencers can support these initiatives. Brands should also keep in mind that skincare consumers are invested in supporting DEI in brands and sustainably sourced products. Communication efforts that promote a brand’s DEI or green initiatives can further increase conversion and loyalty.
Methodology
Provoke Insights conducted a 15-minute online survey among 1,500 Americans between 21 and 65. The study was fielded in April 2023. A random stratified sample methodology was used to ensure a high degree of representation of the US population (household income, age, gender, geography, ethnicity and parental status). Results based on this sample have a maximum margin of sampling error of +/- 2.5% at a 95% confidence level. Statistical differences between subgroups indicated in this research were tested at a 95% confidence level. Check out Provoke Insights for the latest skincare research. Email: info@provokeinsights.com.