As we reach the mid point of the year and following our webinar in spring, we are delighted to share some exclusive insights from June Jensen, Helen Duxbury and Kelly Ackroyd and the wider team at Circana who are observing a shift in consumer behaviour: shoppers are becoming increasingly conscious on how they are consuming, adjusting their purchasing and consumption patterns to mitigate the impact of rising prices and respond to broader societal trends.
The ongoing Cost of Living crisis remains the leading concern for consumers, followed by climate change, health, crime, and emerging concerns related to the actions of the U.S. President and government.
In response to higher prices, consumers are actively seeking deals or cutting back on non-essential spending. However, despite this cautious mindset, Beauty & Personal Care continues to be a resilient category in Europe.
Resilience in Beauty & Personal Care
Consumers in Europe had planned to maintain or even increase their expenditure on Beauty & Personal Care. Supporting this, the total beauty market in Europe posted a +6% growth. Fragrances dominate the Prestige segment (52%), while Skincare and Hair Care lead in the Mass segment (62%). Notably, consumers are willing to invest in Super Premium Face Sun products—even amidst the ongoing cost of living crisis.
To reinforce this trend, key gifting occasions in the UK are driving growth:
- Fragrances saw a +9% year-on-year increase during Valentine’s Day and Father’s Day.
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Skincare grew by +15% during Mother’s Day.
In the first half of 2025, we observed distinct demand peaks aligned with emotional touchpoints. These are driven by increasingly intentional and values-oriented consumers. While online sales are rising in double digits due to earlier planning, brick-and-mortar retail remains essential for last-minute, spontaneous gifting. Capitalising on these moments allows brands and retailers to optimise assortments and leverage tactics like personalised promotions and loyalty programmes to maximise conversions and drive value.
Prestige Beauty vs. Other Categories
Despite a challenging economic backdrop, Prestige Beauty remains remarkably resilient in Europe—especially when compared to categories like household care, non-pet food, and sports apparel.
The resurgence in travel and the prioritisation of experiences is evident:
- 56% of European travellers make purchases abroad due to lower prices.
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48% of UK consumers report shopping while travelling overseas.
This trend, coupled with the UK’s removal of VAT-free shopping, is negatively impacting domestic retail and making the UK less attractive for tourist spending.
Looking Ahead: Category Outlook
Skincare (32%), Supplements, and Hair Care are among the most resilient categories, with a higher proportion of European consumers indicating plans to spend more over the next three months. Conversely, Clothing, Fashion, Jewellery, and Watches show the highest consumer intent to cut back on spending.
Longevity & Wellness: The Consumer Priority
Consumers are increasingly prioritising longevity and self-care, which is reflected in their spending patterns. Travel, experiences, wellness, and beauty are converging. The combined wellness and beauty market in Europe grew by 4%, reaching €72 billion.
Different consumer groups approach wellness differently:
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Physical wellness is most popular in Germany, Spain, and France (45% across all age groups).
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Mental & emotional wellness resonates more with Millennials (46%) and women (41% vs. 30% of men).
Skincare continues to dominate, with face cream being the most important beauty product across all age groups. While serums represent 33% of skincare sales, the EU5 countries are seeing a polarisation, particularly in the €100–€150 price range, which is driving growth.
Prestige vs. Mass: Brand Performance
Prestige brands are growing at twice the rate of mass brands and account for approximately 35% of total beauty sales. Prestige Beauty shows strong seasonality, particularly in Q4 during the Christmas period.
Despite broader market uncertainty, most consumer and sales indicators are trending positively.
Retail & Shopper Behaviour
Retail sales in the EU5 rose by 1.4% in March 2025, marking the ninth consecutive month of growth.
Increased overseas spending and the departure of high-net-worth individuals—partly due to the UK’s new wealth tax—pose a challenge to domestic sales. There’s a clear opportunity for government and business collaboration to reinvigorate the UK market through better incentives for both local and tourist shoppers.
Retailers are responding with more attractive promotions. For example:
- Fragrance units sold with any price reduction are up +1.8 percentage points year-on-year, now accounting for 44% of all units sold year-to-date.
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Sterling sales driven by promotions are up +12%, with overall sterling sales growing by +6%.
Both brick-and-mortar (+6.9%) and online (+7.8%) are growing, highlighting the importance of omnichannel strategies. Social media and viral trends are reshaping consumer behaviour, though it’s worth asking whether emerging “social media fatigue” is beginning to impact online purchases.
Climate Impact & Seasonal Shifts
Recent heatwaves are influencing shopping behaviour. High temperatures may deter consumers from shopping in-store—especially if air conditioning is inadequate—pushing them further toward online convenience.
That said, the heat has positively impacted specific categories:
- Suncare is up +26%, with a +46% spike in April.
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Super Premium Face Suncare surged by +57%.
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Facial Mists are gaining popularity, with sales up +22% in June vs. the prior year.
Innovation vs. Price Sensitivity
Will lower-priced beauty offerings lose momentum as availability peaks, or will innovation continue to drive growth? Beauty remains tightly linked to wellness, and this connection is only expected to deepen as consumers increasingly focus on self-care.
Beauty: A Non-Negotiable
Beauty’s resilience is further validated by recent data from Barclays. Their report, The New Essentials: 10 Years of Spend Insights, shows that UK consumers now view entertainment, travel, and beauty as non-negotiables.
Circana’s extensive insights into the wellness, beauty, and personal care space—including emerging trends in vitamins and supplements—underscore this evolving mindset, where beauty is increasingly “from the inside out.”
In regards to supplements, some key facts to support this across EMEA:
Stay tuned—Circana will continue to share deeper insights and upcoming webinars exploring these shifts in greater detail.
