As inflationary pressures continue to weigh on consumers’ budgets, research from GlobalData has highlighted that beauty and personal care shoppers view discount stores as better value for money for beauty and personal care essentials such as oral care and deodorant.
The firm noted that these shoppers aren’t recognising the additional ‘value for money’ that supposedly comes from the better product quality and service being offered at the higher-end stores.
In June 2025, GlobalData asked 2,000 UK beauty shoppers about their retailer preferences and discovered that more shoppers viewed stores such as Savers’ and Home Bargains as good value for money, in comparison to classic beauty retailers like Boots.
“The lower price points on essentials elevate consumers’ perceptions of value retailers – as consumers see less worth in splashing out on categories such as dentalcare and toiletries,” explained retail analyst at GlobalData, Tash Van Boxel.
“Consumers are stocking up on necessities at discounters as they are less concerned about having a wide range of products to choose from and instead prioritise low prices.”
Consumers will be “price sensitive” for the next year
According to GlobalData, Boots is the clear market leader in the UK health and beauty sector. The retailer has around 1,800 stores across the UK and held a 20% share of the UK health & beauty market in 2024. However, in the new research, Boots ranked 20th among health & beauty retailers in terms of being good value for money.
“Fewer shoppers rate Boots as being good value, indicating that other factors are driving sales. Broad product ranges and convenience will be Boots’ saving grace,” Van Boxel continues.
She said that specialist health and beauty stores like Boots should “focus on improving its value for money perceptions, given that inflation is anticipated to peak soon and consumers will remain price sensitive into the next year.”
Younger shoppers prioritise ingredients over value for money
Van Boxel also highlighted the fact that Gen-Z consumers assess value for money differently to other generations and that half of this generation perceived high-quality ingredients to be the most significant indicator of value.
She said this offers brands and retailers an opportunity to be more transparent about products’ ingredient compositions, as this has become more important as consumers educate themselves about ingredients efficacy.
“Health & beauty specialists must target younger shoppers who prioritise high-quality ingredients over price,” said Van Boxel.
“Younger consumers are willing to invest in health & beauty items that contain high concentrations of ingredients they desire, such as niacinamide and retinol,” she continued.
“This focus will allow the specialists to retain their pricing architectures and compete with discounters based on product ranges rather than price points.”
