Overall Beauty Spending
This year, consumers have healthy beauty budgets. The largest portion (28%) spend between $51 and $100. And 27% spend between $101 and $200.
Notably, nearly three in 10 consumers (29%) spend over $200 each month on beauty products, which is up from 15% last year. This may be evidence of the “lipstick effect.” This is a theory that in times of economic uncertainty, many consumers are willing to spend on small luxuries (like beauty products) that deliver an emotional boost.
It’s important to note that these numbers include both online and in-store beauty shopping. We explore online beauty spending in more detail here. To take a deeper dive into in-store beauty spending, go here.
What Beauty Shoppers Buy
When one hears the word “beauty,” the first thought might be of cosmetics. However, today’s consumers purchase many different types of beauty products. Skincare (96%), makeup (94%), and bath and shower products (90%) top the list.
Beauty Spending by Category
We know what types of beauty shoppers are buying. Below is a snapshot of how much they’re spending across these key categories.
Openness to New Products
There are certain beauty products consumers buy time and again. Maybe it’s a favorite face wash or perhaps a signature fragrance.
When purchasing these habitual products, 96% of consumers indicate they’re at least somewhat likely to also purchase a new product during the same transaction. Nearly half (47%) are very likely to do so.
For Many Consumers, Overall Beauty Spending is Growing
We may be in the midst of an economic downturn. But it seems many consumers are willing to spend on small luxuries. Beauty products fit the bill. This year, 29% of consumers spend over $200 per month on beauty products. That number was 15% in 2022.
This is good news for beauty brands and retailers. However, it doesn’t mean sales growth is inevitable.
The most successful brands and retailers will be those who understand the factors that impact purchase behavior – and adjust their strategies accordingly. We take a deep dive into those key factors here.
Shoppers are Open to Unknown Beauty Products
Nearly all (96%) of consumers are at least somewhat likely to purchase a new-to-them beauty item in the same transaction as a tried-and-true product; 47% are very likely to do so.
Clearly, beauty shoppers are open to trying products they’ve never purchased before. So look for opportunities to cross-sell new products with a shopper’s go-to items.
User-generated content – including ratings and reviews – plays a big role in product discovery and selection (a topic we explore in more detail here). So be sure to incorporate plenty of this content into your cross-selling initiatives.