The Latest Research From Circana Shows European Consumers Prefer a Higher Concentration of the Prestige Beauty Cosmetic Ingredients

In a remarkable resilience against economic headwinds and inflation, the European prestige beauty sector has showcased robust growth throughout the first three quarters of 2023, as reported by Circana, a prominent market research entity.

Covering France, Germany, Spain, Italy, and the UK, prestige beauty sales witnessed an impressive 13% surge in value year on year between January and September. Notably, the skincare segment emerged as a standout performer, displaying a vigorous uptick of 7% in unit sales and a notable 10% increase in value sales, reaching a total of €2.3 billion during the same period.

The surge in skincare sales can be attributed to an increasingly informed consumer base. Mathilde Lion, the Executive Director for Global Client Development at Circana, pointed out that consumers are actively engaging in online research, absorbing insights from influencers sharing their skincare rituals, and exchanging stories with peers. This heightened awareness has empowered consumers to make more informed decisions tailored to their skin type and age.

Circana defines prestige beauty based on distribution through major retailers, both in-store and online. In the UK, for instance, prominent retailers include Boots, John Lewis, Fenwick, Harrods, Harvey Nichols, Liberty, Look Fantastic, Next, Feel Unique, Asos, Sephora, Superdrug, The Perfume Shop, and Fragrance Direct.

Among the skincare product categories, serums, toners, and lip treatments emerged as particularly popular, significantly contributing to the overall growth of prestige skincare. Serums experienced a remarkable 23% increase in unit sales, driven by consumer demand for products with higher concentrations of premium ingredients.

The summer heatwaves across Europe and a heightened awareness of sun damage propelled the demand for prestige suncare products. Circana reported a 12% increase in the value of suncare product sales, with a notable 5% uptick in units. The in-sun face segment, in particular, exhibited a substantial 14% growth in volume, contributing a significant 20% to the overall value sales.

Delving into the ultra-premium segment, products priced above €250 witnessed an 18% growth in value. Notably, renowned brands like Clarins have ventured into this space, introducing innovative and ultra-premium products, such as the Clarins Precious range featuring a rare moonlight flower that blooms only once a year.

Contrastingly, the sub-€50 product category experienced an extraordinary 58% surge in volume sales over the past year. Entry-level brands in prestige stores, with their specialized skincare offerings, attracted new consumers. The Ordinary, for instance, has rapidly climbed the ranks, entering the top 10 European skincare brands by value and securing the position of the most purchased brand in units in prestige beauty stores.

However, Circana noted a challenging landscape for brands priced between €50 and €100, urging them to innovate and cater to the evolving preferences of the modern beauty consumer.

While positive growth prevails across all countries, there are early indications of a slowdown in consumer skincare purchases. France, for example, recorded a 1% decline in unit sales in the year ending September 2023 compared to a year ago, while the UK experienced a remarkable 19% growth during the same period.

Mathilde Lion emphasized the importance of understanding the drivers of consumer demand across countries, channels, and brands, urging brands to adapt their strategies to each element of the path to purchase. In an increasingly competitive and innovative category, smart brands that embrace factors like ultra-premium appeal and specific skincare ingredients are poised to create meaningful differentiation and sustained success.