Premium category growth is helping to keep the wider industry performance up, according to the firm, and young consumers are playing their part too.
Brexit may be a cloud on the horizon, though, with the UK’s withdrawal from the EU having the potential to drive up costs of raw materials and ingredients.
Headline trends: UK market
In an overview of the findings, Lucy Cornford, Category Director of Beauty and Personal Care, said: “Strong sales of core prestige beauty categories have helped maintain growth, even as a culture of competitive pricing threatens to undermine value sales of everyday beauty and grooming essentials.
“Consumers may be on the lookout for bargains, but they’re also still engaged and learning that long-term benefits and quality ingredients can transcend low prices, with social media trends prompting young adults in particular to invest in their appearance.
“Consumers may be on the lookout for bargains, but they’re also still engaged and learning that long-term benefits and quality ingredients can transcend low prices, with social media trends prompting young adults in particular to invest in their appearance.”
Past, present and future
Mintel’s research finds that consumers savvy shopping habits, born in response to the 2008 economic downturn, have married with rising fast innovation in product development and with the popularity of bloggers/vloggers online.
The result has been rising interest in expanding product repertoires, and indeed, the firm notes, strong growth was report in the UK year on year up to 2014. However, those same factors that once fed growth are now threatening it.
“Consumers have come to expect special offers and discounting on everyday grooming essentials, while online tutorials continue to promote beauty shortcuts and alternatives,” the firm says, and since 2014, growth has been muted.
Still engaged: core prestige categories
Mintel notes that despite this, consumers are still buying into core prestige categories across colour cosmetics, hair care and skin care.
“This suggests that a focus on more premium attributes, such as the content and benefit of products that spend longer in contact with the face, hair and body, or even promoting the emotional benefit of trading up to premium, could help push growth further.”
The UK’s vote to leave the EU is unlikely to be too detrimental to the BPC market in the short term, asserts Mintel.
However, in the long term, Brexit could pose new challenges, including:
Any possible changes to EU legislation regarding product safety
The potential rise in price of raw materials and ingredients that is likely to be passed on to consumers.