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Cosmetics & Inflation Trends in 2024: A CEW Report

Prepared by:

Noa Shachaff

Head of Consumer Insights & Analytics, Revuze

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Overview

Inflation has become a significant factor influencing consumer behavior and sentiment. Despite the recent decline in inflation rates, the increase in consumer reviews with inflation-related references is still alive and well and on the rise, suggesting that consumers are still feeling the pinch. In April 2024 , about of U.S. beauty consumers stated that they were buying fewer beauty products as a result of inflation.

Inflation has become a significant factor influencing consumer behavior and sentiment. Despite the recent decline in inflation rates, the increase in consumer reviews with inflation-related references is still alive and well and on the rise, suggesting that consumers are still feeling the pinch. SOURCES Amazon In April 2024 , about of U.S. beauty consumers stated that they were buying fewer beauty products as a result of inflation.

The analysis utilizes millions of reviews collected between from 15 prominent US websites—including Nordstrom January 2022 and May Amazon, Sephora, Ulta, Macy’s, —to provide a comprehensive overview of how inflation has shaped consumer discussions and perceptions within these segments. and By examining the frequency and sentiment of inflation-related discussions, this report offers insights into each category’s ability to provide value amidst rising prices and highlights the themes driving consumer sentiment in the current economic climate.

Inflation Rates and Related Reviews Overtime

Since June 2023, monthly inflation rates have ranged between 3% to 3.5%, declining sharply from their three year high of 9.1% in July 2022. Despite remaining relatively stable in the last 12 months, consumer discussions around inflation have continued to rise as did consumer frustration with price increases.

Reviews Discussing Inflation in the Beauty Category

The Glossier Balm garnered a steady review stream, an impressive 78% positive sentiment and, 4.49 star rating between January 2020 and October 2022.

In March 2023, the series relaunched with a new formula leading sentiment to drop to 42% and star ratings to drop to 2.7.

The Face category accounted for 34% of inflation related reviews. Inflation reviews in this segment had a 55% positive sentiment.
The Lip Category accounted for only 15% of inflation related reviews, but was discussed with a particularly low sentiment of 46%.

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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.

About Revuze

Revuze is at the forefront of delivering cutting-edge AI-powered consumer insights solutions, revolutionizing how businesses leverage data to drive success in the digital landscape.

As the only solution providing brand and category-level, verified buyer data, Revuze helps truth-driven organizations transform online reviews across all sources into true, actionable insights to make informed data-supported decisions and lead categories.

Key Objectives

Industry

Cosmetics

Sources

Amazon, Sephora, Ulta, Macy's, and Nordstrom

Time Period

January 2022 and May 2024

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