EXECUTIVE

SUMMARY
BEAUTY AND PERSONAL CARE
RETAILING
UK, JANUARY 2021
BEAUTY AND PERSONAL CARE RETAILING - UK - JANUARY 2021 2

CHANGES IN PEOPLE’S LIFESTYLES AS A RESULT OF THE COVID-19 PANDEMIC AND THE LOCKDOWNS HAVE
AFFECTED USAGE HABITS AND LED TO MAJOR SHIFTS IN THE TYPES OF BEAUTY AND PERSONAL CARE
PRODUCTS CONSUMERS ARE BUYING. ONE OF THE BIG OPPORTUNITIES IS FOR BRANDS TO FOCUS ON IN-HOME
BEAUTY TREATMENTS AND DIY KITS THAT ALLOW PEOPLE TO IMPROVE THEIR SKIN AND APPEARANCE WITHIN
THE COMFORT OF THEIR HOMES, WHILST ALSO CATERING TO GROWING DEMAND FOR SELF-CARE. THERE IS
SCOPE TO DRIVE PURCHASING IN THE WORST-HIT CATEGORIES SUCH AS FRAGRANCES THROUGH EXTENSIONS
WITH OTHER CATEGORIES SUCH AS PERSONAL CARE AND HOUSEHOLD WHICH HAVE BEEN LESS IMPACTED BY
THE PANDEMIC.

Tamara Sender Ceron, Senior Consumer Analyst

The Market FIGURE 1: SHORT, MEDIUM AND LONG-TERM IMPACT OF COVID-19 ON

THE BEAUTY AND PERSONAL CARE MARKETS, JANUARY 2021
COVID-19 causes disruptions to
BPC retail market

Figure 1 provides an analysis of the impact

of COVID-19 on the beauty and personal
care retail categories. It draws on Mintel’s
expertise in the market, our COVID-19
consumer tracking studies and our
learnings from previous periods of market
disruption.

Areas highlighted in red are expected to

be particularly hard hit, yellow reflects
an expectation of significant but largely
manageable disruption and green shows
that we believe the market will face only
minor negative impact, or that it could
stand to benefit from the changes in
consumer behaviour.

Fall in beauty spending drives Source: Mintel

decline in market

A big fall in value in discretionary

categories such as colour cosmetics
and fragrances has led to an overall
2.9% decline in consumer spending
on beauty and personal care, dropping
to £9.5 billion in 2020. The spring and
subsequent lockdowns, including the
latest one announced in January 2021,
combined with intervening periods of social
distancing, have not only limited retail
sales but also affected usage habits and
purchase, reflecting people’s changing
attitudes towards their appearance as life
moved in-home. While an acceleration
of self-care and wellbeing has benefited
some categories, such as skincare, as
consumers turned to their beauty routines
for a sense of calm, this has not been
sufficient to offset the losses in the major
beauty categories. 

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BEAUTY AND PERSONAL CARE RETAILING - UK - JANUARY 2021 3

Specialists suffer big decline FIGURE 2: MARKET SIZE AND FORECAST FOR CONSUMER SPENDING ON
BEAUTY AND PERSONAL CARE PRODUCTS (INCLUDING VAT), 2015-25
Retail sales through specialist health and
beauty retailers are estimated to have
fallen 9% in 2020 to £11.4 billion. While
many of the specialists remained open
during the lockdowns, the sector has
struggled as many consumers have been
reluctant to travel to visit stores amid the
COVID-19 pandemic. Boots has been
hard hit, with sales at its health and beauty
division declining by 16% for the fiscal year
ended 2020.

COVID-19 leads to soaring demand

for online

The value of the online beauty and

personal care market has soared by
30% to reach £2.7 billion in 2020. A
surge in demand as a result of store Source: IRI/Mintel
closures during the lockdown period and
the ongoing disruption which followed FIGURE 3: HEALTH AND BEAUTY SPECIALISTS’ SALES (INCLUDING VAT),
in 2020 has boosted online penetration. 2015-25
This means that the online channel
now accounts for 29% of all consumer
spending on beauty and personal care in
the UK. Despite the record growth in online
in 2020, BPC remains one of the least-
penetrated online markets, particularly in
comparison to the fashion market, with
consumer spending on clothing, footwear
and accessories accounting for 56% of
total fashion sales in 2020.

Source: ONS/Mintel

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BEAUTY AND PERSONAL CARE RETAILING - UK - JANUARY 2021 4

Companies and brands FIGURE 4: ESTIMATED MARKET SIZE AND FORECAST FOR ONLINE
CONSUMER SPENDING ON BEAUTY AND PERSONAL CARE PRODUCTS,
Charlotte Tilbury ramps up SPLIT BY BEAUTY AND PERSONAL CARE, 2016-20
influencer marketing

Charlotte Tilbury is the second-highest ad

spender in 2019 and in 2020 the brand
ramped up its influencer marketing and
revealed a new partnership with TikTok
influencer Abby Roberts in a bid to appeal
to Gen Z consumers.

Boots launches virtual makeup

and skincare consultation service

Boots launched a virtual beauty

consultation service for customers in June
2020. The 15-minute service will give
customers personalised expertise, product
recommendations and application tips for
skincare, makeup and self-care advice via
telephone or video.

Boots is the most trusted BPC

retailer, but could do more to
stand out Source: Mintel

Boots is the retailer with the highest level FIGURE 5: ATTITUDES TOWARDS AND USAGE OF SELECTED BRANDS,
of consumer trust and one that is seen to DECEMBER 2020
provide a great online service. However,
the brand could do more to stand out.
Boots is less highly differentiated than
other brands such as Lush, which is
perceived as being more innovative and
fun. While both Boots and Superdrug are
viewed as accessible brands, Superdrug is
more closely associated with offering good
value.

Base: internet users aged 16+ who have heard of the brand
Bubble size represents usage (% ever used)
Source: Lightspeed/Mintel

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BEAUTY AND PERSONAL CARE RETAILING - UK - JANUARY 2021 5

The consumer FIGURE 6: BEAUTY AND PERSONAL CARE ITEMS PURCHASED IN THE LAST
12 MONTHS, OCTOBER 2020
Rise in personal care purchasing

Mintel’s consumer research shows a “Which of the following products have you bought for yourself or others in the
slight increase in purchasing of personal last 12 months? Please select all that apply.”
care items to 90% in 2020, up from 88%
in 2019. The top five most purchased
categories all fall within the personal
care sector, with soap, bath and shower
(SBS) having overtaken deodorants. By
contrast, there has been a 2-percentage
point decrease in purchasing of beauty
items to 64% in 2020. While the changes
in levels of purchasing are small, they
are significant as levels have previously
remained stable.
Value brands most popular despite
decline in purchasing

To give more context, we asked

consumers about which types of brands
they typically buy when shopping for
beauty and personal care. Inevitably,
this varies significantly depending on the
product category and the chart illustrates
the extent that purchasing differs across
the core BPC categories. Base: 2,000 internet users aged 16+
Source: Lightspeed/Mintel
Across most categories there has
been a slight decline in purchasing of FIGURE 7: BEAUTY AND PERSONAL CARE BRAND TYPES PURCHASED IN
value/standard own-labels and brands THE LAST 12 MONTHS, OCTOBER 2020
following a significant increase in 2019.
This, however, has not translated into a
significant rise in purchasing of premium “Which types of brands do you typically buy for each of the following beauty/per-
own-label or brands. sonal care products? Please select all that apply.”

Indeed, Mintel’s Beauty Tracker shows that

only 12% of consumers bought a premium
brand in the last three months to October
2020, compared with 21% a year earlier in
October 2019.

For beauty this could be due to the rise of

the masstige segment. Masstige brands
have risen in popularity giving consumers
a ‘premium’ feel at a more mass price.
Deciem, Fenty Beauty and Glossier are
just some examples of brands targeting
the middle-income shopper that have
made premium beauty more accessible to
those on lower budgets.

Base: 1,869 internet users aged 16+ who have bought beauty and personal care products (excluding accessories
and electricals) in the last 12 months
Source: Lightspeed/Mintel

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BEAUTY AND PERSONAL CARE RETAILING - UK - JANUARY 2021 6

Shift towards buying online FIGURE 8: HOW THEY PURCHASED BEAUTY AND PERSONAL CARE
PRODUCTS IN THE LAST 12 MONTHS, OCTOBER 2020
There has been a big increase in online
purchasing of BPC products, with over half “How have you shopped for beauty/personal care products in the last 12
having purchased via this channel in 2020, months?”
up 8 percentage points compared with
2019. The first lockdown period triggered
an increase in online shopping which
has remained high as consumers remain
hesitant to shop in-store, with 51% of
adults being worried about exposure to the
virus when asked between 8-19 October,
and 45% limiting the time spent in-store.
Brands and retailers have been adapting
their online offerings by investing in more
online content and virtual consultations.
They have also been streamlining
delivery services as well as offering more
contactless delivery, but there remain
opportunities for more BPC retailers
to offer delivery passes to increase
purchasing frequency.

Supermarkets continue to
dominate Base: 1,884 internet users aged 16+ who have bought beauty and personal care products in the last 12 months
Source: Lightspeed/Mintel
The UK grocers continue to hold a
dominant position in the beauty and FIGURE 9: WHERE THEY PURCHASED BEAUTY AND PERSONAL CARE ITEMS
personal care sector as almost three IN THE LAST 12 MONTHS, OCTOBER 2020
quarters (73%) of consumers have bought
BPC items from a supermarket in the last “Where have you bought beauty/personal care products either in-store or online
year, but there has been no change in the in the last 12 months?”
proportion buying there in the last year.
Consumers have increasingly been adding
essential beauty products to their online
food orders, driven by a combination of
convenience and necessity.

Base: 1,826 internet users aged 16+ who have bought beauty and personal care products in the last 12 months
and specified how they shopped
Source: Lightspeed/Mintel

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BEAUTY AND PERSONAL CARE RETAILING - UK - JANUARY 2021 7

Amazon grows in popularity FIGURE 10: WHERE THEY PURCHASED BEAUTY AND PERSONAL CARE
ITEMS IN THE LAST 12 MONTHS, OCTOBER 2020
Amazon has outperformed and in the
last year it has strengthened its already “Where have you bought beauty/personal care products either in-store or online
robust position in the BPC sector, making in the last 12 months? Please select all that apply.”
it the third most popular place to buy
beauty and personal care products, up
from sixth place in Beauty and Personal
Care Retailing – UK, January 2020. Close
to a quarter (23%) of shoppers have
purchased from the e-tail giant, peaking
among consumers aged 16-34 who fall
into the C2DE socio-economic groups.
Amazon’s strength in BPC lies in its Prime
membership, which gives consumers
access to fast and convenient delivery, but
it has also expanded its Prime membership
to encompass an array of benefits beyond
delivery, giving subscribers access to
premium content, sampling services and
promotions. After even stronger sales than
anticipated in the second quarter, Amazon
launched its delayed Prime Day in October
2020, which was a record success (see
Amazon – Creating an Ecosystem: Inc
Impact of COVID-19 – UK, January 2021).

Growing importance of anti-viral

products

Close to three in 10 (27%) shoppers

have purchased more products with
anti-viral benefits since the start of
the pandemic. COVID-19 has put the
spotlight on hygiene, raising the status of Base: 1,826 internet users aged 16+ who have bought beauty and personal care products in the last 12 months
hand sanitiser as an everyday handbag and specified how they shopped
essential. Source: Lightspeed/Mintel

FIGURE 11: CHANGES IN BEHAVIOUR SINCE COVID-19 OUTBREAK,

OCTOBER 2020

“Since the COVID-19/coronavirus outbreak, I have... Please select all that ap-
ply.”

Base: 1,826 internet users aged 16+ who have bought beauty and personal care products in the last 12 months
and specified how they shopped
Source: Lightspeed/Mintel

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BEAUTY AND PERSONAL CARE RETAILING - UK - JANUARY 2021 8

Women most drawn to in-store FIGURE 12: INTEREST IN INNOVATIONS WHEN SHOPPING FOR BEAUTY OR
innovations PERSONAL CARE PRODUCTS, OCTOBER 2020

Women are more interested than men in “Which of the following would you be interested in when shopping for beauty/
in-store innovations, peaking among young personal care products? Please select all that apply.”
female shoppers aged 16-24. COVID-19
has accentuated demand for ways to
make shopping in-store more hygienic
and almost a quarter of female shoppers
are interested in touch-free dispensers,
rising to 36% of female under-25s. This
ties in with research showing that female
shoppers are significantly more aware of
hygiene when shopping in-store than their
male counterparts compared to before
COVID-19.

Focus on hygiene when shopping

Female shoppers are significantly more

aware of hygiene when shopping in-store
than their male counterparts compared to
before COVID-19. In fact 72% of women
agree with this compared with 61% of
men. This rises to almost three quarters
(73%) of women aged 16-34. At store
level, an overhaul of product testing
equipment and processes is needed to Base: 1,826 internet users aged 16+ who have bought beauty and personal care products in the last 12 months
attract consumers back in-store, and and specified how they shopped
retailers need to ensure their efforts are Source: Lightspeed/Mintel
well communicated to rebuild trust. For
example, Shiseido’s new concept store FIGURE 13: SHOPPING BEHAVIOUR WHEN BUYING BEAUTY AND
in Tokyo features virtual diagnostic tools PERSONAL CARE PRODUCTS, OCTOBER 2020
alongside touch-free sample dispensers
for skincare and makeup. BPC retailers “Do the following statements about beauty/personal care products apply to
can also look to what other sectors you?”
such as grocery retailers are doing, with
hypermarket chain Emart in South Korea
offering customers antibacterial shopping
carts.

Base: 1,826 internet users aged 16+ who have bought beauty and personal care products in the last 12 months
and specified how they shopped
Source: Lightspeed/Mintel

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