The downturn in Brexit and Highstreet retail has not dampened the country's beauty market, with demand from British consumers rising against the trend and generating £25.1 billion in sales for the beauty industry in 2017. A research report released today by Cosmetic Executive Women (CEW), a beauty nonprofit, and Mentel Inmin, a market research consultancy, points out that between 2015 and 2017, the physical channel remains the main channel for British consumers to buy beauty products. Premium department stores, such as John Lewis & Partners and Debenhams PLC (DEB.L, posted a £2 billion beauty sales growth, up 9 percent from traditional beauty retailers such as the Body Shop and Space NK, to £3.7 billion. Online channels sell £1.1 billion, with an average of one in three consumers choosing to buy online.
Beauty and personal care products each account for 20 per cent of the beauty industry in the UK, with nearly 1, 800 brands in 1700 companies selling £10.2 billion in 2017, making the UK the sixth largest beauty and care market in the world. Per capita beauty and protection products cost 155 pounds, ranked fifth in the world. Makeup and skin care contributed £1.98 billion and £1.26 billion for beauty and personal care, respectively, and £1.8 billion for perfume. Caroline Neville, president of CEW UK, pointed out that one of the reasons the beauty industry outperformed fashion and home in one of the toughest times in Britain's high street in the past decades was because of its prominent "entrepreneurial spirit", which gave birth to Charlotte Tilbury,REN Skincare, Lush,. Nails, Inc.,Sarah Chapman,Elemis and Burberry and other "innovative brands."
Jane Henderson, president of global beauty and personal care at Mintel, agrees that the UK beauty and personal care industry is good at capitalizing on digital technology and consumers' desire for new products to quickly build new brands, and then launch cross-border sales and expand penetration into new markets. In 2016 and 2017, exports of beauty and personal care products in the UK increased by 11 percent, although the EU market, which accounts for 66 percent of exports, grew more slowly, but exports to North America and other regions increased by 10.5 percent and 15.9 percent, respectively. Retail outlets also continued to grow at a high rate, with duty-free beauty sales at UK airports reaching £650 million in 2017 and a share of airport passenger spending approaching a quarter. On the other hand, the proportion of all beauty and personal products made in the UK over the past three years is no less than 22. In the UK, even department stores such as Debenhams PLC and John Lewis & Partners, whose profitability has fallen sharply, are willing to invest a lot of resources to upgrade and expand beauty services to capture the growth opportunities in the beauty market. To increase the appeal to millennials customers.
Jane Henderson, president of global beauty and personal care at Mintel, agrees that the UK beauty and personal care industry is good at capitalizing on digital technology and consumers' desire for new products to quickly build new brands, and then launch cross-border sales and expand penetration into new markets. The biggest contributor to the UK beauty industry is service revenue, with spa, Salon sharing the remaining 60 per cent of the industry with in-store care and haircut and beauty services, with a total revenue of £14.9 billion in 2017. The beauty industry still contributes less to the UK economy than the £32 billion GDP garment industry, which created more than 1m jobs, far outpacing the industry's 890000. A joint report by CEW and Inminte says Brexit will see the beauty industry grow further by 10 times over the next four years to £26.9 billion by 2022, in line with market research firm GlobalData's forecast. This means that the "lipstick effect" of the British economy will be supported by further data.
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