UK cosmetics & toiletries industry to decline by 10% in 2020
By Sophie Nutt | 27 August 2020 | Movers & Shakers, News
The UK cosmetics and toiletries sector will see a £1.7bn value decline in 2020.
Research conducted by GlobalData has revealed that 43% of UK consumers plan to reduce socialising outside of the home, which would cause cosmetics and toiletries to lose out in a Covid-19-driven decision between ‘what is essential and what is disposable’.
“With fewer out-of-home occasions for consumers to attend, as well as the transition to working at home, cosmetics has taken a backseat,” explains Lia Neophytou, consumer analyst at GlobalData. “Even when consumers do venture outdoors, the wearing of masks is further diminishing the need for cosmetics.
“All sectors in the cosmetics and toiletries industry are expected to return to growth in 2021, though will not recuperate their pre-Covid-19 value.”
“With fewer out-of-home occasions for consumers to attend, as well as the transition to working at home, cosmetics has taken a backseat,” – Lia Neophytou, consumer analyst at GlobalData.
According to GlobalData‘s Covid-19 Recovery Tracker Survey, 25% of UK consumers that are earning less due to Covid-19 will purchase beauty and grooming products at the lower end of the price range in future, compared with the UK average of 20%.
Lia Neophytou adds: “Brands operating in the skincare and personal hygiene categories are in a better position than most – though a degree of innovation is still required to mitigate the extent of sector decline and speed up recovery. Investing in marketing campaigns and re-positioning products typically used out-of-home to align with the at-home occasion would be wise.”