Consumer demand is making the UK the fastest growing luxury cosmetic market in Western Europe, according to personal and beauty care analyst Nicole Tyrimou, with particular drivers of growth including native consumers in the North and affluent tourists from the Middle East.
Her research predicts that the market will have three times more percentage growth than Britain’s nearest rivals in the region over the next five years, boosted by a tendency for consumers to spend more on cosmetics than the country’s European neighbors.
Tyrimou comments to CosmeticsDesign-Europe.com: "Especially in skin care, pharmacy brands and natural brands from mainland Europe, more companies have expanded to the UK. They are getting a lot of attention from retailers around the world and a lot more brands are now available. The North is also becoming a big driver of growth."
British beauty to “add most value”
British luxury beauty grew by around 7% in 2012 to reach a value of €800, far higher than the regional average growth of 3%, driven largely by domestic demand. Companies such as Harrods, Selfridges and Harvey Nichols have introduced innovations such as limited editions and exclusive launches in prestige beauty stores, which have helped to drive growth.
Euromonitor’s research shows a bright future for the industry, revealing that UK beauty is expected to “add the most value” in the region to luxury beauty sales over the next five years, with an estimated CAGR of 6% compared to an average of 2%.
Tyrimou also points to limited edition ranges launched to take advantage of “patriotic” events like the Royal Wedding, Olympics and Diamond Jubilee, such as Bond No 9s Jubilee Edition, as being good methods of promoting the exclusivity of brands. She suggests that 'band' brand cosmetics- like One Direction's new range of color cosmetics- could be a good market for beauty companies to enter in the future.
Cultural differences
The analysis also shows that cultural differences lead to diverse patterns of spending to those on the continent, with British women tending to spend more on color cosmetics and less on skincare.
Tyrimou said: "Women in the UK like to look more polished, whilst women in France, for example, prefer a more natural look. British women also wear more tinted eyelashes and mascara."
The analyst points out that this trend is especially prominent in the North of the country, where disposable incomes are lower and yet expenditure on cosmetics and beauty products is higher. She attributes this to the greater levels of fashion consciousness in this region and a tendency for more complex beauty regimes, along with revamps in Birmingham, Liverpool and Manchester which have made these areas more attractive shopping centers.