The rise is due, according to the market research firm, to the rising popularity of niche brands, as well as the growth in the health and wellness trend and its knock-on impact onto beauty.
“The health and wellness trend increased the demand for more natural organic products, and created a strong emphasis on quality ingredients and formulations,” the firm’s analysts note of the trend.
Niche and beauty boxes
Alongside the popularity of niche brands, beauty boxes are also enjoying continued popularity, due to consumer enthusiasm for curation and personalisation when it comes to product selection.
“Consumers want to be inspired by influencers and try new products,” Euromonitor confirms, noting that standalone retailers such as Kiko Milano are also seeing success for their similarly differentiated offering, along with novel launches from fast fashion outlets such as H&M and Primark. All of this indicates a tougher, more competitive landscape now faces the traditional UK market retail leaders, such as Boots and Superdrug.
In terms of key trends, premium and personal care are both enjoying the spotlight at present, in terms of annual current value growth.
“An appetite for premium products was particularly seen in colour cosmetics, bath and shower and baby and child-specific products, in which high growth was achieved,” analysts confirm.
The impact that Brexit will have on the beauty industry in the UK remains uncertain, with Euromonitor noting that there is “doubt as to whether the steady growth rates seen of the review period in beauty and personal care in the UK are set to continue” with the country gearing up to leave the EU.
“Whilst the beauty and personal care market in the UK remained fairly resilient during the economic crash in 2008, the boom previously witnessed in the premium segment may be halted, depending on how the economic situation affects consumers’ disposable incomes.
“A period of uncertainty is likely to overshadow strong growth opportunities, and could ultimately undermine growth over the forecast period,” the firm concludes.