2023
9
UK Beauty and Personal Care Retailing Market Report 2023
2023-02-13T03:01:33+00:00
OX1157503
1645
160497
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Report
en_GB
“Amid an ongoing income squeeze, the BPC market has proven more resilient than other sectors as consumers have turned to beauty as an affordable means to lift their mood. As…

UK Beauty and Personal Care Retailing Market Report 2023

Original price was: £ 2,195.Current price is: £ 1,645. (Excl.Tax)

Description

The UK Beauty and Personal Care Retailing Market Report examines consumers’ evolving attitudes, shopping behaviours and preferences, as well as the increasing adoption of technology and the effects of inflation on the beauty and personal care industry. This report provides a comprehensive overview of the beauty and personal care market size, along with market projections, segmentation and current industry trends for the BPC sector.   

Frequently Asked Market Research Questions

What is the market size of the beauty and personal care industry?

Mintel estimates that retail sales through specialist health and beauty retailers rose 4.9% in 2022 to £12.9 billion as the sector continues to recover from the disruption caused during the pandemic. The market is expected to continue on this positive trajectory and is forecasted to reach £13.6 billion in 2027.

Which brand has the largest beauty and personal care market share?

Boots is the outright beauty and personal care market leader, with nearly a fifth of all consumer spend on beauty and personal care products channelled through the UK’s leading health and beauty specialist. Superdrug has recovered some of its share of the BPC market, amounting to 6% after sales declined over the last years.

What is the biggest challenge that faces the beauty and personal care industry?

The pandemic caused an accelerated shift towards online purchasing which consequently reduced store footfall in BPC retailers. Retailers need to adjust to these challenges and reevaluate what consumers’ priorities are when shopping in-store for BPC products.

Beauty and Personal Care Industry Overview

The beauty retail industry has seen sales boosted, with spending rising by 8% in 2022, buoyed by an ongoing interest in colour cosmetics, facial skincare and fragrances. The ‘lipstick effect’ means people continue to turn to beauty for an affordable mood lift, giving the market some protection from an income squeeze.

Inflationary pressures are driving growth in the personal care industry, although volume sales are being hit as consumers adopt a savvier approach to shopping. Consequently, depending on their demographics and financial situation different types of consumers are adopting a range of behaviours to offset price rises, including trading down and shopping around.

Beauty and Personal Care Market Trends

Retailers in the beauty and personal care industry are embracing different strategies to remain attractive to value-centric consumers. Several beauty specialist retailers have introduced initiatives such as discounts and freezing prices in an attempt to maintain loyalty. Savvier shopping behaviours have led to a rise in the popularity of supermarkets as a destination for purchasing beauty and personal care products.

Consumers are embracing a ‘less is more’ approach to beauty and grooming for the sake of their finances, with more streamlined beauty routines requiring fewer products and reduced usage frequencies. This is benefiting products that provide multifaceted functions such as skincare with SPF.

BPC market statistics

  • 78% of UK adults purchased BPC products in-store in the last 12 months.
  • 50% of consumers agree that they would shop around to find the best prices if they needed to cut back on spending.
  • 39% of Brits agree that well-stocked shelves encourage them to shop at certain retailers.
  • 62% of consumers agree that using multifunctioning products is a good way to save money.

Future Innovation in the Beauty and Personal Care Industry

In the longer term, the beauty and personal care industry have an opportunity to incorporate technology to continue its evolution and cement itself back into shopper routines. Implementing innovative ideas, such as virtual reality make-up tutorials, will help to engage customers and encourage increased time spent in stores.

Given the high rate of overall interest in easy-to-navigate store layout, there is also scope for larger retailers to incorporate the latest technology to help customers both find products and checkout more easily using mobile phone scanning or walk-out technology.

To discover more about the UK Beauty and Personal Care Retailing Market Report 2023, read our UK BPC Brand Overview Market Report 2022, or take a look at our other Retail Market Research.

Quickly Understand

  • Examines how is the cost of living squeeze is impacting the beauty and personal care industry and what savvy shopping behaviours are consumers adopting.
  • Explores how and where people have bought beauty and personal care products in the last 12 months and examines the growth in purchases via smartphones.
  • Explores what is driving in-store shopping and what encourages consumers to buy from one store over another.
  • Changing attitudes to buying BPC products in the last year and interest in the latest innovations.
  • Examines the beauty and personal care market size and share.

Covered in this Report

Brands: Lloyds Pharmacy, Boots, Tesco, Asda, Superdrug, Sainsbury’s, Amazon, The Body Shop, John Lewis, Marks & Spencer (M&S), Debenhams, House of Fraser, Feelunique.com, Savers, The Perfume Shop, Sally Beauty, Space NK, Bodycare Health & Beauty, Jo Malone, The Fragrance Shop, L’Occitane, Molton Brown, Penhaligon’s, Kiko Milano, Avon Cosmetics, Revolution Beauty, Allbeauty.com, Fragrance Direct, Cult Beauty, Glossybox, Higher Nature, L Rowland & Co, Paydens, N+R Gordon, Waremoss.

Products: Makeup, colour cosmetics, nail care, fragrances, skincare, haircare, bodycare, hair removal, oral hygiene, bathing products, deodorants, and beauty tools.

Expert Analysis from a Specialist in the BPC Sector

This report, written by Tamara Sender Ceron, a leading analyst in the BPC sector, delivers in-depth commentary and analysis to highlight current trends in the beauty and personal care industry and add expert context to the numbers.

Amid an ongoing income squeeze, the beauty and personal care industry has proven more resilient than other sectors as consumers have turned to beauty as an affordable means to lift their mood. As retailers embrace different strategies to remain attractive to value-centric consumers, they need to ensure that they still continue to innovate and invest in the shopping experience. There are opportunities for using the latest technology such as AI and AR to improve the experience both in-store and online through virtual try-on and professional consultations as consumers increasingly look for customised beauty solutions.”

Tamara Sender Ceron

Tamara Sender Ceron
Senior Fashion Analyst

 

 

Table of Contents

  1. Overview

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

    • BPC recovery accelerated during 2022
      • Figure 1: Category outlook for beauty and personal care products, 2023-28
    • The market
    • Market size and forecast
      • Figure 2: Fan chart of consumer spending on beauty and personal care products (including VAT), 2017-27
    • Inflationary pressures drive savvy shopping
    • Health and beauty specialists’ sales recover
      • Figure 3: Fan chart of health and beauty specialists’ sales (including VAT), 2017-27
    • Financial pressures will delay online value correction
      • Figure 4: Market forecast for online beauty and personal care, 2017-27
    • Companies and brands
    • Boots maintains largest market share
      • Figure 5: Leading specialist and non-specialist retailers’ estimated market shares, 2021/22
    • Boots seen as most trustworthy, but Lush differentiates itself more
      • Figure 6: Attitudes towards and usage of selected brands, 2022
    • The consumer
    • Purchasing levels remain stable
      • Figure 7: Beauty and personal care items purchased in the last 12 months, 2022
    • Return to stores, but online still strong
      • Figure 8: How they purchased beauty and personal care products in the last 12 months, 2019-22
    • Supermarkets grow in popularity
      • Figure 9: Where they purchased beauty and personal care items in the last 12 months, 2022
    • Females aged 35+ trade down
      • Figure 10: Changes to shopping behaviours in order to save money, 2022
    • Young keen on self-checkouts
      • Figure 11: What encourages people to shop at a store when shopping for beauty or personal care products, 2022
    • Brand and price perceptions shift
      • Figure 12: Attitudes to shopping for beauty and personal care products, 2022
  3. Issues & Insights

    • How is the cost of living squeeze impacting the market?
    • What are the main growth opportunities for retailers?
    • Using technology to improve the store experience
    • Promoting sustainability as a way to save money as well
    • The growing male beauty market
    • Tapping into online beauty communities
  4. Market Size and Performance

    • BPC recovery accelerated during 2022
      • Figure 13: Market size for consumer spending on beauty and personal care products (including VAT), 2017-22
  5. Market Forecast

    • BPC category will take time to recover fully
      • Figure 14: Consumer spending on beauty and personal care products outlook, 2023-28
    • Inflationary pressures drive savvy shopping
      • Figure 15: Fan chart of consumer spending on beauty and personal care products (including VAT), 2017-27
      • Figure 16: Consumer spending on beauty and personal care products (including VAT), 2017-27
    • Digital lifestyles may impact demand
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Segmentation

    • Beauty spending rises as a mood booster
      • Figure 17: Market size and forecast for consumer spending on beauty products (including VAT), 2017-27
      • Figure 18: Market size and forecast for consumer spending on beauty products (including VAT), at current and constant prices, 2017-27
    • Beauty category performance
      • Figure 19: Consumer spending on beauty products (including VAT), by category, 2018-22
    • Colour cosmetics boosted by lipstick effect
    • Fragrances seen as a treat
    • Facial skincare rises driven by higher prices
    • Hand, body and footcare growth slows
    • Personal care spend slows
      • Figure 20: Market size and forecast for consumer spending on personal care products (including VAT), 2017-27
      • Figure 21: Market size and forecast for consumer spending on personal care products (including VAT), at current and constant prices, 2017-27
    • Personal care category performance
      • Figure 22: Consumer spending on personal care products (including VAT), by category, 2018-22
    • Haircare recovers
    • Oral hygiene grows driven by focus on wellbeing
    • SBS faces tough comparisons
    • Hair colourants suffer from return to salons
    • Suncare growth driven by overseas holidays
    • Forecast methodology
  7. Sector Size and Forecast

    • Health and beauty specialists’ sales recover
      • Figure 23: Fan chart of health and beauty specialists’ sales (including VAT), 2017-27
      • Figure 24: Health and beauty specialists’ sales (including VAT), at current and constant prices, 2017-27
    • Notes on Mintel’s sector size
    • Outlet and enterprise numbers
      • Figure 25: Health and beauty specialists’ outlet numbers, 2018-22
      • Figure 26: Health and beauty specialists’ enterprise numbers, 2018-22
  8. Online

    • Financial pressures will delay post-pandemic value correction
      • Figure 27: Market forecast for online BPC, 2017-27
      • Figure 28: Market size for online BPC, 2022-27
    • Online still strong despite return to stores
    • Haircare drives online spending
  9. Market Drivers

    • Personal care inflation soars
      • Figure 29: Consumer price inflation, 2008-22
    • Inflation is the key concern for consumers and brands…
    • Rising interest rates mean that the pressure will move up to middle- and higher-income households
    • Consumer spending power will be curbed
    • Rise in 15-19s presents an opportunity
  10. Leading Specialists

    • Boots recovering from the effects of the COVID-19 pandemic
    • A.S. Watson-owned health and beauty chains sales bolstered as COVID-19 restrictions eased
    • The Body Shop sales slump after booming a year earlier
    • Sally Beauty and Bodycare Health & Beauty blame temporary store closures for decline in sales
    • The Fragrance Shop sales bounce back
    • Penhaligon’s turnover up 62% year on year
    • Retail sales of L’Occitane en Provence rebound sharply
      • Figure 30: Leading specialist retailers’ net revenues (excluding VAT), 2017/18-2021/22
    • Fall in units sold by direct-selling representatives impact Avon Cosmetics sales
    • Revolution Beauty phenomenal sales growth
    • Fragrance Direct revamp website to drive customer loyalty
    • Cult Beauty migration to THG platform delivering immediate results
      • Figure 31: Leading online/home shopping specialist retailers’ net revenues (excluding VAT), 2017/18-2021/22
    • Lloyds Pharmacy separates from McKesson
      • Figure 32: Leading pharmacy chains’ net revenues (excluding VAT), 2017/18-2021/22
    • Boots closes another 60 stores, but expands beauty hall concept to more outlets
    • Superdrug opens its most sustainable store to date
    • The Body Shop introducing its ‘Workshop’ concept to more stores
    • Lush £7.6 million bricks-and-mortar investment
    • Space NK opens its first-ever two-storey shop
    • The Fragrance Shop to open 100 stores over the next three years
    • Molton Brown debuts 1971 store concept
      • Figure 33: Leading specialist retailers’ outlet numbers, 2017/8-2021/22
    • Easing of COVID-19 rules help store sales recover
      • Figure 34: Leading specialists retailers’ estimated sales per outlet, 2017/18-2021/22
    • Cost of wages and raw materials starting to impact operating profitability
      • Figure 35: Leading specialist retailers’ operating profits, 2017/18-2021/22
      • Figure 36: Leading online/home shopping specialist retailers’ operating profits, 2017/18-2021/22
  11. Leading Non-Specialists

    • Cost of living crisis drawing more consumers to shop beauty at discount grocers
    • Department stores beauty sales bounce back
      • Figure 37: Leading non-specialist retailers’ estimated sales growth, by segment, 2021/22
      • Figure 38: Leading non-specialist retailers’ estimated beauty and personal care goods sales (excluding VAT), 2017/18-2021/22
  12. Market Shares

    • Boots accounts for nearly a fifth of all spending on beauty and personal care products
      • Figure 39: Leading specialist and non-specialist retailers’ estimated market shares, 2021/22
      • Figure 40: Leading specialist and non-specialist retailers’ estimated share of all spending on personal care products, 2017/18-2021/22
    • Note on market shares
  13. Launch Activity and Innovation

    • Cost of living initiatives
    • Boots launches an ultra-low priced range to help customers
    • Price freezes become more common
    • Additional cost saving perks for loyalty programme members
      • Figure 41: ‘feel good friday’ scheme
    • Retailers kick-off Black Friday promotions early
    • Sustainability rises up the agenda
    • The Body Shop unveils its new Workshop store at Battersea Power Station
    • Boots ‘Better bathroom’ recycling habits initiative
    • Customer shopping experience at the forefront
    • Boots expands partnership with Deliveroo
    • Harrods launches beauty loyalty scheme
    • Space NK opens new concept store at Battersea Power Station
    • Lush launches 24-hour vending machine style pop-up shop
      • Figure 42: lush pop-up vending machine, 2022
    • Retailers expand into beauty and personal care
    • Marks & Spencer expands its beauty offering
      • Figure 43: BENEFIT COSMETICS RANGE, 2022
    • Next expands beauty offering by launching own brand range
      • Figure 44: NEXT WOAH SKINCARE RANGE, 2022
    • Boohoo launches first beauty collection
    • Growing emergence of marketplace
    • Superdrug launches new marketplace platform
    • Boots to launch marketplace platform in spring 2023 following its rival Superdrug’s launch
    • Farfetch launches beauty marketplace
    • Digital enhancements to drive consumer engagement and shopping experience
    • Superdrug gets innovative with TikTok collaboration
      • Figure 45: In-store photo booth
    • AI-powered skincare advisor offers Superdrug customers innovative shopping experience
    • Charlotte Tilbury Beauty steps into the metaverse
  14. Advertising and Marketing Activity

    • Beauty advertising spend exceeds pre-pandemic level
      • Figure 46: Recorded above-the-line, online, display and direct mail total advertising expenditure on cosmetics and personal care, 2018-22
    • Amazon overtakes Boots to become the biggest beauty and personal care products advertiser
    • Amazon makes a beauty splash with expansion of its Luxury Stores
    • Boots’ ditch ‘Let’s feel good’ tagline and unveil first ever TV advert for its Advantage Card
    • Charlotte Tilbury launches first ever creative campaign for Magic Cream
    • Online-only beauty retailer Beauty Pie launches its first TV campaign
    • Allbeauty ramping up brand awareness
    • Superdrug team up with TikTok in a market-first campaign for a beauty retailer
    • L’Occitane ‘What is a Gift’ campaign highlighting biodiversity, reducing waste and empowering women
    • Next steps up beauty marketing as it launches its own-brand of skincare
    • Space NK looking to stand out from the crowd with pop-ups
    • The Body Shop tackling beauty norms
      • Figure 47: Selected leading retailers recorded above-the-line, online, display and direct mail total advertising expenditure on cosmetics and personal care, 2018-22
    • TV accounts for the biggest percentage share of sector advertising spend
      • Figure 48: Recorded above-the-line advertising expenditure percentage on cosmetics and personal care, by media type, 2022
    • Nielsen Ad Intel coverage
  15. Brand Research

    • Brand map
      • Figure 49: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 50: Key metrics for selected brands, 2022
    • Brand attitudes: Superdrug offers good value
      • Figure 51: Attitudes, by brand, 2022
    • Brand personality: Lush is seen as fun and Sephora as exclusive
      • Figure 52: Brand personality – macro image, 2022
    • Boots is perceived as reliable and welcoming
      • Figure 53: Brand personality – micro image, 2022
    • Brand analysis
    • Boots seen as trustworthy and reliable but not stylish
    • Superdrug reaffirmed its position as a value-oriented brand
    • Sephora returned to the UK with new challenges
    • Lush is seen as ethical and fun, proving cutting social media works well for business
    • Deciem needs to gain more trust from its consumers
  16. What They Buy

    • Purchasing levels remain stable
      • Figure 54: Beauty and personal care items purchased in the last 12 months, 2022
    • Rise in demand for fragrances
      • Figure 55: Beauty and personal care items purchased in the last 12 months, 2020, 2021 and 2022
      • Figure 56: M&S women’s fragrances, 2022
    • Spike in male beauty buyers aged 35+
      • Figure 57: Beauty buyers, by gender and age, 2021 and 2022
    • Women aged 35-54 buy most items
      • Figure 58: Repertoire of beauty and personal care items purchased in the last 12 months, 2022
  17. How They Shop

    • Return to stores, but online still strong
      • Figure 59: How they purchased beauty and personal care products in the last 12 months, 2019-22
    • Gen Zs equally as likely to shop online as in-store
      • Figure 60: How they purchased beauty and personal care products in the last 12 months, by generations, 2022
    • Rise in smartphone purchases
      • Figure 61: How they purchased beauty and personal care products in the last 12 months, 2022
  18. Where They Shop

    • Supermarkets grow in popularity
      • Figure 62: Where they purchased beauty and personal care items in the last 12 months, 2022
    • Boots remains most popular in a competitive market
      • Figure 63: Where they purchased beauty and personal care items in the last 12 months, 2022
    • Amazon competes with rise of online beauty marketplaces
  19. Savvy Shopping Behaviours

    • Females aged 35+ trade down most
      • Figure 64: Changes to shopping behaviours in order to save money, 2022
    • Worst-off consumers use fewer products
      • Figure 65: Changes to shopping behaviours in order to save money, by financial situation, 2022
    • A trend for finding dupes
      • Figure 66: Changes to shopping behaviours in order to save money, by generations, 2022
  20. What Drives In-Store Shopping

    • Young keen on self-checkouts
      • Figure 67: What encourages people to shop at a store when shopping for beauty or personal care products, 2022
    • Growth of refill stations
    • Using in-store events to draw young shoppers
      • Figure 68: What encourages people to shop at a store when shopping for beauty or personal care products, by gender and age group, 2022
    • Using technology to help with solutions can broaden appeal
      • Figure 69: TURF Analysis – Factors to drive in-store beauty/personal care purchases, October 2022
      • Figure 70: Table – TURF Analysis – Factors to drive in-store beauty/personal care purchases, October 2022
  21. Attitudes to Shopping for Beauty and Personal Care

    • Brand and price perceptions shift
      • Figure 71: Attitudes to shopping for beauty and personal care products, 2022
    • Young look at product demonstrations online before purchasing
    • Using VR to improve the online experience
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  23. Appendix – Forecast Methodology

      • Figure 72: Consumer spending on beauty and personal care products (including VAT), 2022-27
      • Figure 73: Health and beauty specialists’ sales (including VAT), at current and constant prices, 2022-27

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.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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