Earlier this week, we caught up with June Jensen Mills, Vice President Commercial Global Beauty & Head of UK Beauty, Circana who shared her insights from Circana’s latest data, and we are delighted to share these exclusively with CEW UK members.
According to Jensen Mills, “The UK prestige beauty industry is experiencing a significant boom, now valued at £4 billion, representing a robust 10% increase year-on-year. This impressive growth, according to the latest Circana data, surpasses that of other consumer packaged goods (CPG) sectors, such as ambient grocery, healthcare, and personal care. The mass beauty sector is also performing well, with a 6% growth compared to the previous year.
A key factor driving the success of the prestige beauty sector is the consumer desire for in-store experiences. Fragrance sales have seen a substantial increase, with an 8% growth in department stores and a 12% rise in other retail channels. This indicates a strong preference for discovering new scents in physical retail environments. Similarly, makeup has experienced a 15% growth as consumers are drawn to experimenting with new colours in-store.
E-commerce continues to be a vital growth engine for the industry, achieving a 13% increase compared to last year, while brick and mortar stores have also seen a positive 9% rise in sales. Department stores are capitalizing on the trend by expanding their hair care sections, which have seen a 34% growth, drawing in consumers eager to explore new brands and solutions. Skincare is another area that is seeing growth, with both established and emerging brands offering innovative products and in-store experiences supported by expert brand consultants.
Despite prevailing economic challenges such as high interest rates and decreased disposable income, which are impacting many other industries, the beauty and wellness sector is proving to be remarkably resilient. The sector demonstrated exceptional performance during the festive period. Total beauty sales surged by 18.5% year-on-year in December 2024, and this was further boosted by a mega week 52, which saw a 61% growth in prestige beauty sales. Fragrance stood out as the top performer, experiencing a remarkable 97% growth in that final week, making it the ultimate last-minute Christmas gift.
Furthermore, even difficult weather conditions, like Storm Darragh, which initially deterred some consumers from visiting physical stores, did not significantly hamper the sector’s growth. Online sales compensated for this, growing by 31% for the month, while brick and mortar stores still saw positive growth overall.
Looking towards 2025, the UK economy is expected to show cautious optimism. Although consumers may become more selective in their spending, the “joy economy” is anticipated to continue, driving further growth in the beauty sector. The year may see potential spikes and periods of flat spend due to the complex economic landscape. However, the beauty sector shows signs of resilience. Self-care trends are expected to increase, particularly as more individuals return to commuting to work.
Areas poised for growth include:
- Hair care and the “skinification” of hair, such as scalp treatments and masks.
- Skincare, especially body care, both of which have seen an 18% growth versus the previous year.
- Niche fragrances are expected to continue to drive the fragrance market in 2025 and beyond.
While lip products were the focus in 2024, leading to more reserved growth in eye makeup, the popularity of eye makeup may be set to increase in 2025. Watch this space!
The data clearly indicates that the UK prestige beauty sector is not only thriving but is also adapting to changing consumer preferences and economic conditions.”
For more information please get in touch with the team at Circana UK
