Imogen Matthews, Consultant08.01.23
Inflation, recession fears and other monetary constraints adversely effect European consumers’ willingness to purchase makeup products. As a result, there’s been minimal category growth during the past year. Brands must work harder to hold share. They trying tactics like virtual try-ons and interactive apps which are becoming the norm across the industry. Meanwhile, refillable containers are an alternative to single-use cosmetics. Refillable formats attract eco- and cost-conscious consumers.
The tough climate for makeup sales was reflected in the slow 1% value growth for the European premium makeup category last year, according to Euromonitor. However, Emilie Hood, senior research analyst, Euromonitor International, maintains that consumer spending is normalizing post-pandemic after intermittent lockdown restrictions caused a “carpe diem” attitude toward indulgence.
“Many consumers opted to treat themselves to products they had not purchased during the pandemic due to a lack of opportunity, or disposable income due to furlough schemes or job losses,” explained Hood.
Lancôme Le 8 Hypnose Serum-Infused Volumizing Mascara is enriched with amino acids and sustainably sourced shea butter to moisturize and nourish lashes.
Lip oils are a popular new product trend. Christian Dior’s Lip Glow Oil, for instance, sold out when it debuted in February 2022. Other lip oil launches include Hermes Beauty Hermesistible Scented Lip Oils and Guerlain’s KissKiss Bee Glow Lip Balm. Westman Atelier’s Squeaky Clean Liquid Lip Balm is a hybrid formula that merges a balm, lip oil, gloss and tint in one.
The skinification of the nail category sees skin care ingredients migrating into nail treatment products. For example, British nail brand Nails Inc’s Base Glow hyaluronic base coat contains hyaluronic acid and collagen.
Plant-based nail product launches are growing too. ECooking’s nail polishes exclude 18 ingredients that are allowed to be used in cosmetics in the EU, but the Denmark-based company claims they cause irritation, allergies or are harmful to the environment.
Revolution Man Skin Tint was developed with shade-adapting technology, according to GlobalData. The formula initially appears white, but changes color to match skin tone when rubbed onto the skin.
It demonstrates the continued demand for subtle male cosmetics,” observes Lia Neophytou, lead analyst of health and hygiene insights, GlobalData.
Neophytou said that refill products can encourage consumer loyalty and offer cost savings compared to the purchase of a full-size packaged product, which could be appealing during the cost-of-living crisis.
“Consumer adoption can be a challenge for make-up brands,” she warns, however. “Refillables can inhibit experimentation as consumers may not wish to purchase from the same brand repeatedly, even for cost-savings in the long term.”
This could pose a significant problem for brands targeting the Gen Z and Millennial consumers who often are more inclined toward experimentation.
Hood maintains that the key to expansion of refillable makeup in Europe is accessibility.
“Currently, refillable cosmetics aren’t widely available. To be successful, refillable needs to provide a tangible benefit outside of just being the more environmentally friendly option as, for budget conscious consumers, sustainability is an afterthought rather than the reason for purchase.”
But virtual try-ons are commonplace at every price point—including MAC, Dior, Maybelline and NYX—offering apps/digital content to help consumers choose shades and products, and introduce them to new launches. Charlotte Tilbury is the latest brand to launch an app; it promises color matching and skin analysis. Its main benefit is that users do not need to download the app to their device, but can access it online—an important attribute, according to Hood.
“There is a distrust both in terms of doubting accuracy of the virtual try-ons, but also in terms of data privacy and security,” explained Hood. “Many are cautious about allowing access to their photos/cameras.”
Meanwhile, the Estée Lauder voice-enabled makeup assistant (VMA) promises to assist visually impaired users. The app enables the brand to reach an otherwise hard-to-reach consumer.
Despite the advances in AI and digital interaction with the consumer, most people still have a preference for going in-store to try products, rather than purchasing online, according to Euromonitor International. With this in mind, makeup brands should focus more on creating immersive experiences that allow consumers to interact physically with products before they buy.
Imogen Matthews
Headington, Oxford UK
+44 1865 764918
www.imogenmatthews.co.uk
Imogen Matthews is a respected consultant, journalist and researcher who commentates on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles, has served on the Board of Cosmetic Executive Women (CEW UK) and won the prestigious Cosmetic Executive (UK) Achiever Award. Founded by Imogen in 1993, The Premium Market Report remains the only in-depth report to examine trends in the premium cosmetics, skincare and fragrance industry.
Price Point Pain
It’s bad out there. Almost a third (30%) of European consumers who claim to be cutting back on beauty and grooming products stopped buying makeup altogether in the previous three months on grounds that these products are too expensive, according to GlobalData’s 2023 Q1 Global Consumer Survey for Europe. Almost as many switched to cheaper brands, while 13% switched to cheaper alternatives within the same brand. Taking the total beauty and grooming products category as a whole, just 7% claimed to purchase more items. This raises an interesting question for makeup brands faced with the rising cost of goods: Keep investing in new formulations and product formats, which are known drivers for growth, or buckle down and keep the focus on existing products in the range?The tough climate for makeup sales was reflected in the slow 1% value growth for the European premium makeup category last year, according to Euromonitor. However, Emilie Hood, senior research analyst, Euromonitor International, maintains that consumer spending is normalizing post-pandemic after intermittent lockdown restrictions caused a “carpe diem” attitude toward indulgence.
“Many consumers opted to treat themselves to products they had not purchased during the pandemic due to a lack of opportunity, or disposable income due to furlough schemes or job losses,” explained Hood.
New Brands To Watch
Despite a more subdued bigger picture, at brand level there have been a number of novel product launches. According to Innova Market Insights, 14% of new product launches in Western Europe were in the UK, followed by 12.5% in Germany, 10.9% in France, 8.5% in Spain and 8.3% in Italy. Some of these notable launches include the following.Lancôme Le 8 Hypnose Serum-Infused Volumizing Mascara is enriched with amino acids and sustainably sourced shea butter to moisturize and nourish lashes.
Lip oils are a popular new product trend. Christian Dior’s Lip Glow Oil, for instance, sold out when it debuted in February 2022. Other lip oil launches include Hermes Beauty Hermesistible Scented Lip Oils and Guerlain’s KissKiss Bee Glow Lip Balm. Westman Atelier’s Squeaky Clean Liquid Lip Balm is a hybrid formula that merges a balm, lip oil, gloss and tint in one.
The skinification of the nail category sees skin care ingredients migrating into nail treatment products. For example, British nail brand Nails Inc’s Base Glow hyaluronic base coat contains hyaluronic acid and collagen.
Plant-based nail product launches are growing too. ECooking’s nail polishes exclude 18 ingredients that are allowed to be used in cosmetics in the EU, but the Denmark-based company claims they cause irritation, allergies or are harmful to the environment.
Revolution Man Skin Tint was developed with shade-adapting technology, according to GlobalData. The formula initially appears white, but changes color to match skin tone when rubbed onto the skin.
It demonstrates the continued demand for subtle male cosmetics,” observes Lia Neophytou, lead analyst of health and hygiene insights, GlobalData.
Refillable Makeup Opportunities
Refillable packaging is increasingly offered on some products by premium makeup brands, including Charlotte Tilbury and Victoria Beckham Beauty. These items allow consumers to replace the used pan with a refill. Danish brand Kjaer Weis offers refills across its range, which is made from sustainable materials such as recycled paper and recyclable metals.Neophytou said that refill products can encourage consumer loyalty and offer cost savings compared to the purchase of a full-size packaged product, which could be appealing during the cost-of-living crisis.
“Consumer adoption can be a challenge for make-up brands,” she warns, however. “Refillables can inhibit experimentation as consumers may not wish to purchase from the same brand repeatedly, even for cost-savings in the long term.”
This could pose a significant problem for brands targeting the Gen Z and Millennial consumers who often are more inclined toward experimentation.
Hood maintains that the key to expansion of refillable makeup in Europe is accessibility.
“Currently, refillable cosmetics aren’t widely available. To be successful, refillable needs to provide a tangible benefit outside of just being the more environmentally friendly option as, for budget conscious consumers, sustainability is an afterthought rather than the reason for purchase.”
AI in Makeup
With all the talk of artificial intelligence (AI) taking over people’s lives, it appears that the emergence of makeup apps and virtual try-ons are not the game changer once promised.But virtual try-ons are commonplace at every price point—including MAC, Dior, Maybelline and NYX—offering apps/digital content to help consumers choose shades and products, and introduce them to new launches. Charlotte Tilbury is the latest brand to launch an app; it promises color matching and skin analysis. Its main benefit is that users do not need to download the app to their device, but can access it online—an important attribute, according to Hood.
“There is a distrust both in terms of doubting accuracy of the virtual try-ons, but also in terms of data privacy and security,” explained Hood. “Many are cautious about allowing access to their photos/cameras.”
Meanwhile, the Estée Lauder voice-enabled makeup assistant (VMA) promises to assist visually impaired users. The app enables the brand to reach an otherwise hard-to-reach consumer.
Despite the advances in AI and digital interaction with the consumer, most people still have a preference for going in-store to try products, rather than purchasing online, according to Euromonitor International. With this in mind, makeup brands should focus more on creating immersive experiences that allow consumers to interact physically with products before they buy.
Imogen Matthews
Headington, Oxford UK
+44 1865 764918
www.imogenmatthews.co.uk
Imogen Matthews is a respected consultant, journalist and researcher who commentates on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles, has served on the Board of Cosmetic Executive Women (CEW UK) and won the prestigious Cosmetic Executive (UK) Achiever Award. Founded by Imogen in 1993, The Premium Market Report remains the only in-depth report to examine trends in the premium cosmetics, skincare and fragrance industry.