The Color Cosmetics Market Hasn’t Recovered from Covid

The expected bounce back in European makeup sales following steep declines during the pandemic has yet to happen. At nearly $12.6 billion, Western European sales remain 7.3% lower than 2019. Euromonitor reports particularly big declines in the UK and France in 2020, with makeup losing around a quarter of its sales in both countries. The results follow years of weakness in both countries. As a result, both recorded the worst 2015-2020 CAGRs. 

Euromonitor painted a similar picture for makeup sales in eastern Europe, which has also failed to recover lost ground since before the pandemic. Here, Euromonitor expects the market to be valued at nearly $3.5 billion in 2022, which is tracking 2.1% lower than in 2019. According to Euromonitor, makeup was one of the worst affected beauty categories by the pandemic which suffered significant disruption from retail closures and lockdowns. And with the war in Ukraine showing no signs of ending, and many major beauty brands pulling out of Russia, the region’s biggest market, Eastern European makeup sales aren’t expected to recover any time soon.

A further setback is that many western European countries are suffering a cost-of-living crisis brought on by rising inflation and increasing energy prices.

“Consumers are likely prioritizing only the most ‘essential’ items required within their beauty routines,” said Lia Neophytou, senior analyst, GlobalData.

She added that the pared-back, low-maintenance look is also impacting sales.

A Turn to TikTok

Makeup trends are heavily influenced by advice handed out on social media platforms such as TikTok and Instagram. According to Culture Whisper, a London-based marketing, design and development agency, a number of beauty trends on TikTok feature beauty tips that consumers can use to save money. Culture Whisper has identified products, such as lipstick and concealer or color corrector, that can double as multi-taskers for use on different parts of the face, including eyes, cheeks, chin, nose and lips. Another beauty tip is called “clean-girl makeup.” The look ditches heavy shadows and thick foundations in favor of primer, concealer, blush, brow gel and a slick of lip balm. Another beauty hack is to take a rose-tinted eyeshadow and mix it with clear lip balm for a DIY lipstick.

Naturally, makeup companies are on the case and pushing their own multi-tasking products and influencers on social media. For example, Italian brand Kiko Green Me Lips & Cheeks is a two-in-one lipstick and blush pencil. Revolution Beauty London has a range of recyclable multi-use kohl crayons which can be used as eyeliners, brow pencils or for creative crayon looks.

Kiko and Revolution Beauty are among a growing number of low-cost makeup brands that position themselves as “affordable luxury.” Revolution Beauty, founded in the UK by Adam Minto, is a globally recognized cosmetics brand and well-known for its influencer marketing on Instagram and TikTok. It strives to create high quality and affordable products and is known for its inclusivity. It focuses on influencer marketing and collaborations with some of the industry’s best-known bloggers and influencers.

GlobalData singled out two recent launches from Revolution that demonstrate the brand’s ability to tap into emerging trends. Soap Styler+ is a soap which, when dampened and applied with a brush, keeps eyebrows in shape.

“The launch was inspired by social media content which highlighted the soap brow technique, demonstrating the inspiration social media can have on beauty innovation,” said Neophytou.

The second product is a brow and beard pencil, a 2-in-1 pencil and comb for the eyebrows and beard, sold in the Revolution Man range.

“This launch demonstrates the ongoing opportunity for make-up products targeting male audiences, particularly image-conscious Gen-Z consumers,” she added.

A Premium Comeback

According to the NPD Group, prestige beauty sales in the UK posted double-digit gains during the first quarter of 2022. After a long period of being restricted indoors when consumers relaxed their makeup routines, many splashed out on premium products as they returned to mixing in society and partaking of social events. During the first quarter of 2022, L’Oréal’s Luxe division’s sales rose nearly 50% over 2021.

“The strong image and established reputation of brands within its Luxe portfolio, including Lancôme and Yves Saint Laurent, are likely to have attracted beauty shoppers,” said Neophytou.

Charlotte Tilbury launched a foundation range at the start of 2022 called Beautiful Skin foundation. The 30-shade line is formulated with hyaluronic acid for hydration, rose complex to target dullness, dryness and pigmentation issues and Bix’Activ, said to decrease the appearance of oiliness. Supermodel Kate Moss is the face of the foundation range across the brand’s social media channels, alongside Bridgerton actress Phoebe Dynevor and supermodel Jourdan Dunn.

Natural & Vegan Thrive

European consumers look for “hygienic,” “easy to use” and “convenience,” followed by “natural” when choosing makeup, according to GlobalData’s Q2 2022 Global Consumer Survey.

“Natural is considered an essential product feature to 30% of European consumers,” said Neophytou. “Makeup innovation that aligns with these features is likely to capture their attention.”

Vegan beauty has been on the rise in Europe for some time, reflecting interest in a vegan lifestyle; it’s only natural that these consumers would opt for vegan beauty products. Brands taking the vegan route include Revolution Beauty and Delilah, but they come from opposite ends of the market.

“The prestige makeup market has been challenged over the past few years,” admitted Emma Fishwick, account manager, NPD UK Beauty. “But the growth in vegan makeup sales is an interesting development and will shape the course of the market in years to come.” 

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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.