The New Consumer (May-June 2023)
Beauty Trends
The prestige beauty industry is growing, and younger consumers are willing to spend on super-premium products. In 2022, U.S. prestige beauty (i.e., skincare, haircare, fragrance and makeup) sales revenue grew 15%, year over year, to reach $27.1 billion, according to data from The NPD Group.
• Makeup contributed the most sales revenue gains of all the prestige beauty categories.
• Lip products were the fastest-growing segment in makeup, with lip gloss outperforming lipstick.
• In skincare, body products grew at more than three times the rate of facial products.
• Hair was the smallest, yet fastest-growing, beauty category, led by masks and targeted treatments.
• Prestige beauty saw a greater shift back to stores in 2022, while online sales share increased in the mass market.
A trends report by business journalist Dan Frommer, also titled “The New Consumer,” indicated that “in-store” is still the most common way to discover beauty products across generations. However, “in-store” is closely followed by TikTok and YouTube for Gen Z. For Millennials and older shoppers, the “in-store” option is (not so closely) followed by “friends,” “brand websites” and other online sources.
Sustainability Mindsets
Recent research from American software and consultancy company Blue Yonder found that the COVID-19 pandemic had a noticeable impact on consumer sustainability habits. Nearly half of consumers surveyed said their interest in shopping sustainably increased since the start of the pandemic.
• Most consumers are willing to delay deliveries if it’s more sustainable.
• 64% are willing to spend more on sustainable packaging.
• 77% considered or changed their brand loyalty to sustainable brands.
• Shoppers are most likely to switch loyalty for food, household, and beauty and wellness products.
• Price is the most important factor for shoppers when making a sustainable purchase.
• When evaluating the sustainability of a company’s product, 32% said consumer reviews were the most important factor.
• Social media has influenced 52% of consumers’ sustainable shopping frequency, with Facebook and Instagram having the biggest influence.
Shopping While Drunk
One in six (14%) Americans, or 45 million, shopped under the influence of alcohol in 2022, spending $309 a year each and $14 billion collectively on tipsy purchases, according to Finder’s annual “Drunk Shopping” survey.
The most common purchases include shoes, clothing or accessories, food, alcohol and gambling. Other key takeaways from the study, which polled 2,179 Americans from January through February regarding the 12 months prior, include:
• Fewer women are shopping under the influence (10%) than men (26%).
• Millennials drink and shop most often (33%), followed by Gen Z (28%) — both most commonly purchasing shoes, clothing and accessories.
• Only 2% of Baby Boomers admitted to shopping under the influence.
• Food was the top choice for Boomers at 45%, while Gen X spent the most on alcohol at 45%.