Insights from Revuze’s Latest Inflation & Beauty Industry Report

Understanding consumer sentiment and preferences is crucial, especially during times of economic fluctuation and turmoil. Revuze’s latest “Inflation Rate Analysis” report offers an in-depth look at how inflation impacts consumer purchase decisions and sentiments across four key beauty categories: Nail, Eye, Lip, and Face. This analysis builds on last year’s findings, further illuminating the evolving relationship between inflation and the beauty sector.

Consumer Behavior Shifts Amid Inflation

In the aftermath of the COVID-19 pandemic, inflation levels climbed higher than they had since 1981, peaking at 9.1% mid-year 2022. Since then, they’ve decreased, averaging out at 4.1% in 2023 and 3.0% for the 12 months ending in June 2024. 

However, consumers are not as quick to get back to pre-inflation behaviors. In June 2023, more than 80% of shoppers reported modifying their purchasing habits due to inflation concerns. This overall trend is reflected in the U.S. beauty market, where about 41% of consumers reported buying fewer beauty products in April 2024 as a result of rising prices.

Last year’s report, “How Recent Inflation Affected Consumers’ Behavior – An In-Depth Look at the US Beauty and Cosmetics Industry” showed that despite rising prices, consumers did not significantly reduce their beauty product purchases. Instead, they became more discerning, prioritizing value for money and opting for DIY solutions. This year’s report reinforces these trends, showing that while consumers continue to invest in beauty products, their expectations for quality and value have heightened. 

Key Findings and Trends

Let’s delve into the core insights from the latest report, examining how consumer behavior and sentiment across different beauty product categories have evolved in response to inflation. 

Nail Products

Consumers increasingly view nail products as affordable alternatives to salon visits, offering significant savings both in terms of money and time. The convenience and quality of at-home nail kits have garnered positive reviews, with many consumers appreciating the value these products provide during inflationary times.

Nail products were mentioned as an affordable alternative to more expensive options in 52% of inflation-related reviews, compared to 31% for the entire beauty category.

Consumers praised the durability and reusability of these products, which matched salon-quality results. This trend reflects the broader DIY beauty movement, which gained momentum during the COVID-19 pandemic and continues to be popular during periods of economic uncertainty.

Consumers saw Nail products as more affordable alternatives to more expensive options when they included the following:

• Ease of Use: Products that are user-friendly and suitable for beginners are highly valued, as they reduce the need for professional help. 
• Quality and Durability: Nail products that match or exceed salon-quality results are praised for their effectiveness and longevity. 
• Cost Savings: The ability to achieve professional results at a fraction of the cost of salon visits is a significant draw for consumers. 

Eye Products

Similar to nail products, eye makeup, particularly eyelash and eyebrow products, are praised for their affordability and quality. Consumers have found these products to be cost-effective substitutes for more expensive brands.

Eye products were viewed as affordable alternatives in 41% of inflation-related reviews. 

Consumers saw Eye products as more affordable alternatives to more expensive options when they included the following:

• Value Compared to Other Products: Eye products that matched and even exceeded the quality and functionality of higher-priced brands (like enhanced lash length or fuller eyebrows) were favored as affordable alternatives. 

• Convenience: The availability of these products online makes them more accessible, allowing consumers to easily replenish their supplies. This convenience was frequently highlighted in reviews of eyebrow pencils and mascaras.

Lip Products

In contrast to Nail and Eye products, Lip products faced more criticism, with 57% of consumers stating that these items are “expensive and no longer worth their price.”

The key issues driving dissatisfaction with lip products include:

• Packaging Changes: Alterations that result in product waste or make application difficult are major concerns for consumers. 
• Reformulations: Changes in product formulas that lead to inferior performance compared to previous versions are viewed negatively. 
• Value for Money: The reduction in product size without a corresponding decrease in price is seen as a significant drawback.

Face Products

Despite inflation, face products continue to receive positive feedback when they offer unique benefits such as superior coverage, long-lasting wear, and formulations suitable for sensitive skin. Trusted brands with consistent quality also maintain consumer loyalty.

Face products were more likely to be mentioned as “expensive but worth it” than other categories (29% versus 19% in the entire beauty category. 

Consumers found face products to be worth their higher price when they included the following:

• Superior Coverage and Longevity: Products that offer excellent coverage and long-lasting wear are highly valued. 
• Distinctive Benefits: Features such as specific formulations for sensitive skin, lightweight textures, and beneficial ingredients enhance the perceived value of face products. 
• Value Over Time: Products that last longer or require less frequent use offer more value, making them worth the higher price.
• Brand Trust: The consistent quality and reputation of trusted brands foster consumer loyalty and positive sentiment. 
• Packaging: Attractive and functional packaging adds to the overall appeal and perceived value of the product.

Strategic Insights for Beauty Brands

The latest findings offer important insights for beauty companies seeking to adapt to economic changes. It’s clear that consumers are more conscious of their spending and seek products that offer the best value for their money. By understanding these shifts, brands can better position themselves in the market, ensuring their offerings align with consumer needs and preferences during inflationary periods. 

For a deeper dive into the data and to explore detailed insights, read the full “Inflation Rate Analysis” report by Revuze.

Florence Broder

Florence Broder is a marketing professional with over 20 years of experience. She has worked in a range of global high-tech companies.