They call it “the lipstick effect” - the theory when facing an economic crisis, consumers head for the lipsticks; denied the larger luxury goods, they will look for the little lifts. So it’s no surprise that the post-pandemic landscape for the beauty industry looks very luxurious indeed.
In 2019, the consumption value of cosmetics and personal care was £10.66 billion in the UK alone, the third biggest European segment – with the global market projected to be worth $758.4 billion dollars by 2025. According to a report by McKinsey, ‘Treat yourself’ - i.e. splurging on products in the name of self-care - has become a fully-fledged beauty and wellness sales strategy, and online is where the money can be made. McKinsey found while in-person commerce dominated sales pre-Covid, accounting for 85 percent of revenues, post-pandemic, it was the online shopping space for beauty and wellness which ballooned, making up 30 percent of sales, an undoubtedly huge shift in a short space of time.