2021
9
UK Beauty and Personal Care Retailing Market Report 2021
2021-02-05T03:03:05+00:00
OX1042381
2195
133645
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Report
en_GB
“Changes in people’s lifestyles as a result of the COVID-19 pandemic and the lockdowns have affected usage habits and led to major shifts in the types of beauty and personal…

UK Beauty and Personal Care Retailing Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Beauty and Personal Care market, including the behaviours, preferences and habits of the consumer.

UK lockdowns from the COVID-19 pandemic saw a huge shift in the way that people use beauty and personal care (BPC) products. The decline in retail purchases and the decreased overall demand saw a drop in BPC spending to 2.9%. While there was an increase of 54% in online purchasing during 2020, with the value of the online BPC market reaching £2.7 billion, it wasn’t able to offset the overall market loss.

Because of the closure of most non-essential businesses, many people were forced to work from home. This saw a large drop in demand for BPC products, especially for colour cosmetics and fragrances. However, thanks to an increased awareness of personal health, skincare and other wellness-focused products have seen a rise in sales. There was also an increase in the DIY beauty market, with many professional services being closed or consumers not wanting to travel due to restrictions.

This report focuses on the possible opportunities for the beauty market as it recovers from the pandemic. BPC companies could begin to focus on their growing social media presence, with only 21% of shoppers using smartphones to buy BPC products in 2020. There are also market opportunities in advertising to women aged 55+, and in the growing demand for home-use wellness and self-care products.

Quickly understand

  • The impact of COVID-19 and the second national lockdown on the beauty and personal care market.
  • How consumers’ shopping behaviour has changed since COVID-19.
  • How and where people have bought beauty and personal care in the last 12 months and growth in online purchasing.
  • How retailers and brands can use innovation to stand out and drive growth.

Covered in this report

Brands: Molton Brown, The Fragrance Shop, Penhaligon, Boots, Superdrug, Charlotte Tilbury, Lush, L’Occitane, Space NK, Bobbi Brown, Lookfantastic, Feelunique, The Body Shop, Marks and Spencer, The Perfume Shop, John Lewis, House of Fraser, Asda, Amazon, Sainsbury’s, Debenham’s, Sally Beauty UK, Bodycare Health & Beauty, Jo Malone, Kiko Milano, Avon Cosmetics, Cult Beauty, Glossybox, Higher Nature PLC, Yves Rocher UK.

Products: Toiletries, soap, fragrances, bath or shower products, haircare, beauty accessories, deodorant and body spray, oral hygiene, makeup, shaving and hair removal, nail care, facial skincare, body skincare, electronic appliances, sun care.

Expert analysis from a specialist in the field

Written by Tamara Sender, a leading analyst in the Beauty and Personal Care sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Changes in people’s lifestyles as a result of the COVID-19 pandemic and the lockdowns have affected usage habits and led to major shifts in the types of beauty and personal care products consumers are buying. One of the big opportunities is for brands to focus on in-home beauty treatments and DIY kits that allow people to improve their skin and appearance within the comfort of their homes, whilst also catering to growing demand for self-care. There is scope to drive purchasing in the worst-hit categories such as fragrances through extensions with other categories such as personal care and household which have been less impacted by the pandemic.

Tamara Sender
Senior Consumer Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The Market
    • COVID-19 causes disruptions to BPC retail market
      • Figure 1: Short, medium and long-term impact of COVID-19 on the beauty and personal care markets, January 2021
    • Fall in beauty spending drives decline in market
      • Figure 2: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2015-25
    • Specialists suffer big decline
      • Figure 3: Health and beauty specialists’ sales (including VAT), 2015-25
    • COVID-19 leads to soaring demand for online
      • Figure 4: Estimated market size and forecast for online consumer spending on beauty and personal care products, split by beauty and personal care, 2016-20
    • Companies and brands
    • Charlotte Tilbury ramps up influencer marketing
    • Boots launches virtual makeup and skincare consultation service
    • Boots is the most trusted BPC retailer, but could do more to stand out
      • Figure 5: Attitudes towards and usage of selected brands, December 2020
    • The consumer
    • Rise in personal care purchasing
      • Figure 6: Beauty and personal care items purchased in the last 12 months, October 2020
    • Value brands most popular despite decline in purchasing
      • Figure 7: Beauty and personal care brand types purchased in the last 12 months, October 2020
    • Shift towards buying online
      • Figure 8: How they purchased beauty and personal care products in the last 12 months, October 2020
    • Supermarkets continue to dominate
      • Figure 9: Where they purchased beauty and personal care items in the last 12 months, October 2020
    • Amazon grows in popularity
      • Figure 10: Where they purchased beauty and personal care items in the last 12 months, October 2020
    • Growing importance of anti-viral products
      • Figure 11: Changes in behaviour since COVID-19 outbreak, October 2020
    • Women most drawn to in-store innovations
      • Figure 12: Interest in innovations when shopping for beauty or personal care products, October 2020
    • Focus on hygiene when shopping
      • Figure 13: Shopping behaviour when buying beauty and personal care products, October 2020
  3. Issues and Insights

    • Impact of COVID-19 on the beauty and personal care market
    • How can retailers use innovation to stand out and drive growth?
  4. The Market – Key Takeaways

    • COVID-19 causes disruptions to BPC retail market
    • Fall in beauty spending drives decline in market
    • Specialists suffer big decline
    • COVID-19 leads to soaring demand for online
  5. Market Size and Forecast

    • COVID-19 causes disruptions to BPC retail sector
      • Figure 14: Short, medium and long-term impact of COVID-19 on the beauty and personal care markets, (Prepared December 2020)
    • UK beauty and personal care spending drops 3% in 2020
      • Figure 15: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2015-25
      • Figure 16: Market size and forecast for consumer spending on beauty and personal care products (including VAT), at current and constant prices, 2015-25
    • Slow recovery anticipated
    • UK’s exit from the EU will have a smaller impact on BPC than the pandemic
    • Market drivers and assumptions
      • Figure 17: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 11 January 2021)
    • Learnings from the last recession
      • Figure 18: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2007-12
    • Forecast methodology
  6. Market Segmentation

    • Fall in beauty spending drives decline in market
      • Figure 19: Market size and forecast for consumer spending on beauty products (including VAT), 2015-25
      • Figure 20: Market size and forecast for consumer spending on beauty products (including VAT), at current and constant prices, 2015-25
    • Beauty category performance
      • Figure 21: Consumer spending on beauty products (incl VAT), by category, 2016-20
    • Colour cosmetics impacted by lack of usage occasions
    • Facial skincare sees increased usage routines
    • Fragrances hit hard by lack of social occasions
    • Hand, body and footcare benefits from boost to wellbeing
    • Personal care spend resilient
      • Figure 22: Market size and forecast for consumer spending on personal care products (including VAT), 2015-25
      • Figure 23: Market size and forecast for consumer spending on personal care products (including VAT), at current and constant prices, 2015-25
    • Personal care category performance
      • Figure 24: Consumer spending on personal care products (incl VAT), by category, 2016-20
    • Haircare sees reduced purchasing due to lockdowns
    • Oral hygiene continues in decline due to price sensitivities
    • Soap, bath and shower benefits from focus on hygiene
    • Shaving & hair removal drops down list of priorities
    • Deodorants usage impacted by increased time at home
    • Hair colourants boosted by closure of hair salons
    • Suncare suffers from lack of overseas holidays
    • Forecast methodology
  7. Sector Size and Forecast

    • Specialists suffer big decline
      • Figure 25: Health and beauty specialists’ sales (including VAT), 2015-25
      • Figure 26: Health and beauty specialists’ sales (including VAT), at current and constant prices, 2015-25
    • Notes on Mintel’s sector size
    • Outlet and enterprise numbers
      • Figure 27: Health and beauty specialists’ outlet numbers, 2016-20
      • Figure 28: Health and beauty specialists’ enterprise numbers, 2016-20
    • Forecast methodology
  8. Online

    • COVID-19 leads to soaring demand for online
      • Figure 29: Estimated market size and forecast for online consumer spending on beauty and personal care products, 2015-25
      • Figure 30: Estimated market size and forecast for online consumer spending on beauty and personal care products, at current and constant prices, 2015-25
    • COVID-19 boosts online beauty engagement
      • Figure 31: Estimated market size and forecast for online consumer spending on beauty and personal care products, split by beauty and personal care, 2016-20
    • Online channels of distribution
      • Figure 32: Retail share of online consumer expenditure on beauty products, 2018-20
  9. Channels to Market

    • Grocers challenging beauty specialists’ dominance
      • Figure 33: Estimated distribution of spending on beauty and personal care products, 2020
      • Figure 34: Estimated distribution of spending on beauty and personal care products (including VAT), 2018-20
  10. Market Drivers

    • Personal care returns to inflation in 2019
      • Figure 35: Consumer price inflation, 2008-19
    • BPC category prices see sharp upturn in June 2020
      • Figure 36: Consumer price inflation, November 2019-November 2020
    • Wages outpace inflation in October
      • Figure 37: Real wage growth – Average weekly earnings vs inflation, 2016-20
    • Population trends
      • Figure 38: Population trends in the UK, 2020-30
    • COVID-19 impacts consumer financial confidence
      • Figure 39: Trends in how respondents would describe their financial situation, November 2019-December 2020
    • Concerns over future finances remain
      • Figure 40: Concerns over future finance, December 2020
    • Consumers save more
      • Figure 41: How consumers will spend extra money, December 2019 and December 2020
    • Consumers are shopping more online
      • Figure 42: COVID-19 behaviour changes, 8-16 December 2020
    • UK’s exit from the EU will have a smaller impact on BPC than the pandemic
  11. Companies and Brands – Key Takeaways

    • Boots’ sales slip, while those at A.S. Watson grow
    • Sustainability remains relevant amid a pandemic
    • Boots is the most trusted BPC retailer, but could do more to stand out
  12. Leading Specialists

    • Boots’ sales slip, A.S. Watson-owned retailers’ revenue up
      • Figure 43: Leading specialist retailers’ net revenues (excluding VAT), 2015-19
    • Online beauty retailers
      • Figure 44: Leading online/home shopping specialist retailers’ net revenues (excl. VAT), 2015-19
    • Leading pharmacies by sales
      • Figure 45: Leading pharmacy chains’ net revenues (excl. VAT), 2015-19
    • Outlet numbers and sales per outlet
      • Figure 46: Leading specialist retailers’ outlet numbers, 2015-19
      • Figure 47: Leading specialists retailers’ estimated sales per outlet, 2015-19
    • Operating profits and margins
      • Figure 48: Leading specialist retailers’ operating profits, 2015-19
      • Figure 49: Leading specialist retailers’ operating margins, 2015-19
      • Figure 50: Leading specialist online/home shopping retailers’ operating profits, 2015-19
      • Figure 51: Leading specialist online/home shopping retailers’ operating margins, 2015-19
  13. Leading Non-specialists

    • Mainstream and discount grocers sector BPC sales grow
    • Department store sector BPC sales faltering
      • Figure 52: Leading non-specialist retailers’ estimated sales growth, by segment, 2019
    • Amazon BPC sales surge
      • Figure 53: Leading non-specialist retailers’ estimated beauty and personal care goods sales (excluding VAT), 2017-19
  14. Market Shares

    • Competitive and fragmented market
      • Figure 54: Leading specialist and non-specialist retailers’ estimated market shares, 2019
      • Figure 55: Leading specialist and non-specialist retailers’ estimated share of all spending on BPC products, 2017-19
    • Note on market shares
  15. Launch Activity and Innovation

    • BPC brands ramp up virtual reality services amid store closures
    • Boots launches virtual makeup and skincare consultation service
    • Pinterest launches virtual makeup ‘Try on’ feature, starting with lipstick
      • Figure 56: Pinterest AR tool, 2020
    • L’Oréal Paris launches a virtual makeup line that works on live video
      • Figure 57: L’Oréal AR makeup filter, 2020
    • Debenhams launches a virtual beauty room
    • Boots to unveil first ever exclusively digital product launch
    • Brands work to support customers during pandemic
    • Lush offers free hand washes and delivery
      • Figure 58: Lush invited customers in for free hand washes, 2020
    • Superdrug fast tracks its same-day delivery service for urgent orders
    • Lush launches letterbox soap kits
      • Figure 59: Lush letterbox kits, 2020
    • Sustainability remains relevant amid a pandemic
    • Boots launches new in-store product recycling scheme
      • Figure 60: Boots recycle scheme, 2020
    • L’Oréal launches makeup recycling initiative with TerraCycle across UK shops
    • Beauty brands repurpose factories
    • Jo Loves launches scented hand sanitiser
    • Medik8 reveals pocket-sized hand sanitisers for the vulnerable
    • Tan-Luxe stops production of tanning products to launch hand sanitisers
    • L’Occitane
    • Product Launches
    • Lush reveals first ever subscription box
      • Figure 61: Lush subscription box, 2020
    • L’Oréal to launch AI personalised cosmetics device
      • Figure 62: L’Oréal’s Perso device, 2020
  16. Advertising and Marketing Activity

    • Total adspend declines in 2019
      • Figure 63: Recorded above-the-line advertising expenditure on beauty and personal care, total market, 2016-20
    • Boots top advertising spender in 2019
    • Charlotte Tilbury ramps up influencer marketing
    • Debenhams launches virtual beauty rooms to help customers in lockdown
      • Figure 64: Recorded above-the-line, online, display and direct mail total advertising expenditure on beauty and personal care, by top leading retailers, 2015-20
    • TV still dominates adspend in 2019, but digital growing
      • Figure 65: Recorded above-the-line advertising expenditure percentage on beauty and personal care, by media type, total market, 2019
    • Nielsen Ad Intel coverage
  17. Brand Research

    • Brand map
      • Figure 66: Attitudes towards and usage of selected brands, December 2020
    • Key brand metrics
      • Figure 67: Key metrics for selected brands, December 2020
    • Brand attitudes: Superdrug offers good value
      • Figure 68: Attitudes, by brand, December 2020
    • Brand personality: Lush is seen as fun
      • Figure 69: Brand personality – macro image, December 2020
    • Space NK seen as stylish
      • Figure 70: Brand personality – micro image, December 2020
    • Brand analysis
    • Boots remains a popular and trusted BPC retailer
      • Figure 71: User profile of Boots, December 2020
    • Superdrug seen to offer good value
      • Figure 72: User profile of Superdrug, December 2020
    • L’Occitane seen as ethical
      • Figure 73: User profile of L’Occitane, December 2020
    • Lush is innovative
      • Figure 74: User profile of Lush, December 2020
    • Lookfantastic needs to do more to connect with customers
      • Figure 75: User profile of Lookfantastic, December 2020
    • Bobbi Brown seen as stylish
      • Figure 76: User profile of Bobbi Brown, December 2020
    • Space NK seen as cutting edge
      • Figure 77: User profile of Space NK, December 2020
  18. The Consumer – Key Takeaways

    • Shift in product purchasing reflects lifestyle changes
    • Shift towards buying online
    • Growing importance of anti-viral products
    • Demand for diversity among Gen Z
  19. COVID-19’s Impact on BPC Consumers

    • Consumers spend more on healthcare products during lockdown
      • Figure 78: Consumer purchasing on healthcare and beauty products, 8-16 December 2020
    • People need alternatives for beauty services to look good for Zoom calls
      • Figure 79: Behaviours impacted by COVID-19, 8-16 December 2020
    • COVID-19 accelerates online shopping…
      • Figure 80: Changes in consumer behaviours due to COVID-19, 8-16 December 2020
    • …forcing brands to engage with consumers in a different way amid lockdowns
      • Figure 81: Use of top 5 social media networks in the last 3 months, 2017-20
    • Consumers worry about exposure to the virus
      • Figure 82: How worried consumers are about being exposed to COVID-19, 8-16 December 2020
  20. What They Buy

    • Rise in personal care purchasing
      • Figure 83: Beauty and personal care items purchased in the last 12 months, October 2020
    • Shift in product purchasing reflects lifestyle changes
      • Figure 84: Beauty and personal care items purchased in the last 12 months, October 2019 and October 2020
    • Rise in beauty purchasing among young women
      • Figure 85: Beauty buyers, by gender and age, October 2019 and October 2020
    • Increase in repertoire of products purchased
      • Figure 86: Repertoire of beauty and personal care items purchased in the last 12 months, October 2019 and October 2020
  21. Brand Types Purchased

    • Value brands most popular despite decline in purchasing
      • Figure 87: Beauty and personal care brand types purchased in the last 12 months, October 2020
    • Decline in prestige fragrance purchasing
    • Premium own-label and brands bought online
      • Figure 88: Beauty and personal care brand types purchased in the last 12 months, by how they were purchased, October 2020
  22. How They Shop

    • Shift towards buying online
      • Figure 89: How they purchased beauty and personal care products in the last 12 months, October 2019 and October 2020
    • Women aged 45+ embrace online channel
      • Figure 90: How they purchased beauty and personal care products in the last 12 months, by age and gender, October 2020
    • Only a fifth purchased via a smartphone
      • Figure 91: How they purchased beauty and personal care products in the last 12 months, October 2020
    • Makeup most likely to be bought online
      • Figure 92: Beauty and personal care products purchased in the last 12 months, by how they shopped, October 2020
  23. Where They Shop

    • Supermarkets continue to dominate
      • Figure 93: Where they purchased beauty and personal care items in the last 12 months, October 2020
    • Amazon grows in popularity…
    • …but Boots remains most used retailer
      • Figure 94: Where they purchased beauty and personal care items in the last 12 months, October 2020
    • Women aged 45+ most loyal
      • Figure 95: Repertoire of where they purchased beauty and personal care items in the last 12 months, October 2019 and October 2020
  24. Changes in Behaviour since COVID-19

    • Growing importance of anti-viral products
      • Figure 96: Changes in behaviour since COVID-19 outbreak, October 2020
    • Young men invest in DIY BPC products
      • Figure 97: Agreement with statements about changes in behaviour since COVID-19 outbreak, by age and gender, October 2020
  25. Interest in Innovations

    • Wide demand for letterbox-sized packages
      • Figure 98: Interest in innovations when shopping for beauty or personal care products, October 2020
    • Women most drawn to in-store innovations
      • Figure 99: Interest in innovations when shopping for beauty or personal care products, by gender, October 2020
    • Highest earners keen on transparency of origin of products
      • Figure 100: Interest in innovations when shopping for beauty or personal care products, by generation, October 2020
    • Young drawn to online beauty consultations
  26. Beauty and Personal Care Shopping Behaviour

    • Focus on hygiene when shopping
      • Figure 101: Shopping behaviour when buying beauty and personal care products, October 2020
    • Affluent look for products to treat themselves
      • Figure 102: Agreement with statement ‘I look out for products to treat/pamper myself’, by annual household income, October 2020
    • Demand for diversity among Gen Z
      • Figure 103: Agreement with statement ‘I prefer to buy from brands/retailers that support diversity’, by generation, October 2020
    • Facial skincare buyers prefer to buy from brands that support diversity
      • Figure 104: Beauty and personal care retailing – CHAID – Tree output, October 2020
    • Methodology
      • Figure 105: Beauty and personal care retailing – CHAID – Table output, October 2020
  27. Appendix – Data Sources, Abbreviations and Supporting Information

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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