Cosmetics & Inflation Trends in 2024: A CEW Report

Inflation Discussions in the Beauty Category

Reviews referencing inflation were most prevalent in Foundations (Face), Mascaras and Eyebrows (Eye), Nail Kits/Art (Nail) and Lipstick (Lip).

Inflation Related Themes

By Review Distribution

Face

Face products were more likely to be mentioned as ‘expensive but worth it’ in inflation related discussions vs. 19% in total) .

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

• Provided superior coverage and long-lasting wear
• Offered distinctive benefits or features not readily found in other products such as specific formulations for sensitive skin, lightweight textures, or the inclusion of beneficial ingredients
• Lasted longer than other products or required less frequent use, offering more value over time
• Belonged to a trusted brand with consistent quality and reputation Came in attractive and functional packaging

Face Product Reviews

Eye

Eye products were more likely to be mentioned as offering ‘affordable alternatives to more expensive options’ in inflation related discussions (41% share in Eye vs. 31% in total) .

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

• Matched and even exceeded the quality and functionality of higher-priced brands (like enhanced lash length or fuller eyebrows)
• Were more easily available online compared to other products, making them more convenient to replenish, and more practical for regular purchases.

Eye Product Reviews

Lip

Lip products were more likely to be mentioned as ‘expensive and no longer worth their price’ in inflation related discussions. (57% share in Lip vs. 43% in total)

Consumers found lip products to no longer be worth their higher price given the following:

• Product packaging changed, leading to product waste or difficulties in application
• Products underwent reformulation that resulted in inferior performance compared to previous versions
• Product decreased in size or amount with price increasing or staying the same.

Lip Product Reviews

Nail

Nail products were more likely to be mentioned as offering ‘affordable alternatives to more expensive options’ in inflation related discussions (52% share in Nail vs. 31% in total).

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

• Offered significant savings over salon visits, both in terms of money and time
• Were easy to use at the convenience of one’s home
• Matched salon-quality results, making them effective substitutes for more expensive services
• Were user-friendly even to beginners, reducing the need for professional help Were durable and reusable, providing good value over time.

Nail Product Reviews

Summary

This report highlights the pervasive impact of inflation on consumer sentiment and purchasing behavior within the beauty industry. Despite the stabilization of inflation rates, consumer discussions around inflation continue to rise, reflecting growing frustration with price increases.

Key findings indicate that the Face category has the highest share of inflation-related reviews, with a notable positive sentiment towards the value provided by these products although they are perceived as expensive. Conversely, Lip products are frequently cited as being “expensive and no longer worth it,” demonstrating a decline in consumer satisfaction.

Eye and Nail products, on the other hand, are often viewed as affordable alternatives to higher-priced options. Many consumers appreciate the value they offer in the context of inflation. This trend underscores the importance of affordability and perceived value in maintaining consumer loyalty.

Overall, the data suggests that while inflation remains a critical concern, the beauty industry can navigate these challenges by emphasizing product quality, unique features, and value propositions that resonate with cost-conscious consumers.

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