2021
9
UK COVID-19 And BPC: A Year On Market Report 2021
2021-05-18T04:08:57+01:00
OX1044867
2195
138296
[{"name":"Beauty and Personal Care","url":"https:\/\/store.mintel.com\/industries\/beauty-personal-care"}]
Report
en_GB
“COVID-19 has created unprecedented challenges for the UK BPC market, driving a significant decline in spending on both BPC products and professional services. Whilst spend will recover as restrictions are…

UK COVID-19 And BPC: A Year On Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

The UK BPC report identifies consumer attitudes towards beauty and personal care in the UK. The Market report covers the market size, market forecast, market segmentation and industry trends for the UK BPC Market in the UK. 

 Current Market Landscape 

The COVID-19 pandemic saw major changes to the lives of many consumers, with national lockdowns throughout 2020 and into 2021 causing many to spend more time at home. COVID-19’s impact on the beauty industry also saw a shift in how consumers purchased and used BPC products.

  • The value of the UK BPC market declined by 27% to £18.7 billion in 2020.
  • The lipstick effect continues to drive demand as 51% of BPC consumers have bought beauty/grooming products since the start of the pandemic.
  • personal appearance has become less important to 24% of adults since the start of the outbreak.

The reduction of social occasions during the COVID-19 pandemic impacted the usage and spend across several BPC categories, with fragrances and colour cosmetics amongst the hardest hit. While social occasions return and see demand recover, there will be residual effects as consumers have embraced a lower-maintenance approach to beauty and grooming.

 Future Market Trends in UK BPC Market 

The biggest threat currently facing the post-COVID BPC industry will be price competition. Consumers are looking for value, and the sudden growth in the online channel will exacerbate the issue as it aids price comparison behaviours. This will make it easier for BPC consumers to buy lower-priced products, especially with the economic impact of the pandemic limiting many budgets.

Innovations in BPC products will buoy the BPC industry demand as consumers remain willing to spend where there is a perceived return on investment, with 35% of BPC consumers saying the effectiveness of a product has grained more importance since the start of the pandemic. This means the biggest opportunities in the post-COVID BPC market is asserting product efficacy through data and science-backed claims, as well as increased awareness over diversity.

Read on to discover more details or take a look at all of our UK Beauty and Personal Care market research.

Quickly understand

  • The impact of COVID-19 on the UK BPC market size and forecast.
  • How the pandemic and economic disruption has shaped consumer behaviour.
  • The long-term implications of beauty and grooming routine changes.
  • The outlook for BPC retailing, including online and offline opportunities.
  • Post-pandemic priorities when buying beauty and grooming products.

Covered in this report

Brands: Byredo, Next, Codex Beauty, L’Oréal, Estée Lauder, Alterna Haircare, Boots, Mankind, The Modern Man, Cult Beauty, H Beauty.

Expert analysis from a specialist in the field

This report, written by Samantha Dover, a leading analyst in the Beauty and Personal Care sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 has created unprecedented challenges for the UK BPC market, driving a significant decline in spending on both BPC products and professional services. Whilst spend will recover as restrictions are eased, there will be a lasting impact as consumers prioritise value and favour low-maintenance routines. However, as consumers invest in beauty and grooming to lift their mood, and results remain important, consumers will be willing to spend both time and money on BPC where there is a perceived return on investment. There are also opportunities to create a more seamless online and offline experience as consumers adopt a more hybrid approach to shopping.
Samantha Dover
Senior Beauty and Personal Care Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Products and services covered in this Report
          • COVID-19 market context
            • Economic and other assumptions
            • Executive Summary

                • Impact of COVID-19 on BPC
                  • Figure 1: Short, medium and long-term impact of COVID-19 on BPC, 30 April 2021
                • The market
                  • A slow but steady recovery forecast for BPC
                    • Figure 2: Forecast for the value of the UK BPC market (prepared 30 April 2021), at current prices, 2015-25
                  • The consumer
                    • Speedy routines will boost demand for time and ease-of-use claims
                      • Figure 3: Change in time spent on daily beauty/grooming routine compared to before COVID-19, March 2021
                    • Consumers have gained confidence in their DIY capabilities
                      • Figure 4: Beauty/grooming routine changes since the start of the COVID-19 outbreak, March 2021
                    • The desire for a natural look will outlast the pandemic
                      • Figure 5: Planned changes to beauty/grooming routines once COVID-19 is no longer a concern, March 2021
                    • Compelling online experiences will resonate more than ever before
                      • Figure 6: Channels used to purchase beauty/grooming products since the start of the COVID-19 outbreak, March 2021
                    • Buying BPC continues to lift the mood for consumers
                      • Figure 7: Beauty/grooming purchase motivations since the start of the COVID-19 outbreak, March 2021
                    • Value and efficacy will be more important post-pandemic
                      • Figure 8: Change in priorities when purchasing beauty/grooming products since the start of the COVID-19 outbreak, March 2021
                  • COVID-19 Consumer Timeline

                      • Phase 1 – January-March 2020 – Consumers go into lockdown
                        • Phase 2 – March-June 2020 – Adapting to life in lockdown
                          • What it meant for BPC
                            • Figure 9: Recorded daily number of confirmed cases of COVID-19 and deaths registered as relating to the virus, 30 January-31 August 2020
                          • Phase 3 – June-September 2020 – Emerging from the initial lockdown
                            • What it meant for BPC
                              • Phase 4 – September-December 2020 – Rise of the next wave
                                • What it meant for BPC
                                  • Figure 10: Recorded daily number of confirmed cases of COVID-19, 30 January 2020-28 March 2021
                                • Phase 5 – January-March 2021 – Winter lockdown and vaccine rollout
                                  • What it meant for BPC
                                    • Figure 11: Cumulative number of first and second vaccines delivered in the UK, 10 January-4 April 2021
                                  • Phase 6 – March 2021 onwards – The roadmap out of lockdown
                                    • What it meant for BPC
                                    • BPC Winners and Losers

                                      • SBS outperformed as hygiene concerns boosted demand
                                        • Figure 12: Behaviours related to using soap, bath and shower products in the last six months, October 2020
                                      • Demand for facial and body skincare proved resilient
                                        • Smaller brands and retailers benefited from the shift online
                                          • The impact of salon closures was polarised
                                            • Figure 13: Intentions to colour hair at home in the next 12 months, by new and existing at-home hair colour users, October 2020
                                          • Colour cosmetics was the hardest-hit BPC category
                                            • Figure 14: BPC categories that have seen a reduction in consumer spending since the start of the COVID-19/coronavirus outbreak, 18-30 June 2020
                                          • Travel disruption exacerbated the challenges for fragrances and suncare
                                            • Relaxed personal care habits subdued demand
                                              • Own-label struggled amidst retail upheaval
                                                • Figure 15: BPC brand types purchased in the last 12 months, October 2019 and October 2020
                                            • The Post-pandemic Outlook for BPC

                                              • Shift from colour cosmetics to facial skincare will stick
                                                • Continued homeworking will influence demand
                                                  • Spend in certain categories will be reliant on travel’s recovery
                                                    • Figure 16: Planned or intended destination for 2021 holiday travel, 4-12 March 2021
                                                  • Responding to trends will determine success in haircare
                                                    • Value and efficacy will be front of mind for consumers
                                                      • Figure 17: Trends in current financial situation compared with a year ago, 11-23 March 2021
                                                    • Purpose-driven brands will resonate
                                                      • Masstige brands will benefit from the lipstick effect
                                                        • Figure 18: Byredo makeup, 2020
                                                      • Retail disruption in 2020 will have a lasting impact
                                                        • Figure 19: Next Beauty & Home Store, Milton Keynes, 2020
                                                    • The Economic Impact

                                                        • A record drop in economic activity…
                                                          • Figure 20: Annual percentage change in GDP, 2007-25 (fore)
                                                        • …as COVID-19 restrictions caused a severe fall in spending
                                                          • Consumer spending is heavily dependent on the path of the pandemic
                                                            • Figure 21: Household consumption index, 2019-25 (scenario forecasts)
                                                          • Furloughs have saved millions of jobs…
                                                              • Figure 22: Number of employments furloughed, time series, March 2020-February 2021
                                                            • …but unemployment is forecast to rise when state support ends
                                                              • Figure 23: Quarterly unemployment rate, Q1 2008-Q1 2026 (fore)
                                                            • Under-25s have taken the brunt of COVID-19 job losses
                                                              • Figure 24: Change in number of employees on payroll, by age, February 2021 vs February 2020
                                                            • BPC – Learnings from the last recession
                                                              • Figure 25: Value sales of BPC products (excluding professional services), 2007-12
                                                          • BPC Market Size

                                                            • The impact of COVID-19 on BPC
                                                              • Figure 26: Short, medium and long-term impact of COVID-19 on the UK BPC market, 30 April 2021
                                                            • Some categories were struggling prior to the pandemic
                                                              • Figure 27: Value of the UK BPC market, at current and constant prices, 2015-20
                                                            • Value decline in 2021 was significant, but professional services took the brunt
                                                              • The impact of lockdown has softened over time
                                                              • BPC Market Forecast

                                                                • There will be some recovery in 2021, but not all spend will return
                                                                  • Figure 28: Forecast for the value of the UK BPC market (prepared 30 April 2021), at current prices, 2015-25
                                                                • Value sales unlikely to reach pre-pandemic levels in the next five years
                                                                  • Figure 29: Forecast for the value of the UK BPC market (prepared 30 April 2021), at current and constant prices, 2020-25
                                                              • COVID-19 Scenario Planning

                                                                • Mintel’s approach to predicting the impact of COVID-19
                                                                  • Fundamental differences in how COVID-19 is affecting consumer markets
                                                                    • The risk of vaccine-resistant strains of COVID-19 adds huge uncertainty
                                                                      • A slow emergence will cement BPC trends adopted in the short term
                                                                        • Figure 30: COVID-19 scenario forecasts for the UK BPC market (prepared 30 April 2021), 2015-25
                                                                      • Rapid progress in fighting COVID-19 will rebuild BPC usage occasions
                                                                        • COVID-19 market disruption: risks and outcomes
                                                                          • Figure 31: Summary of Mintel scenario expectations and the impact on the BPC market, April 2021
                                                                      • Consumer Concerns over the Impact on Health

                                                                          • Exposure anxieties align with case numbers
                                                                              • Figure 32: Mintel COVID-19 exposure anxiety and lifestyle impact index, 28 February 2020-12 March 2021
                                                                            • Exposure anxiety typically higher among over-55s
                                                                                • Figure 33: Proportion of adults indicating higher levels of anxiety (‘4’ or ‘5’) towards being exposed to the coronavirus, by age, 28 February 2020-12 March 2021
                                                                              • Middle-age band fear transmitting virus
                                                                              • Consumer Concerns over the Impact on Lifestyles

                                                                                  • Concerns about lifestyles impact outweigh exposure fears
                                                                                    • Consumers react to unprecedented lifestyle restrictions
                                                                                        • Figure 34: Mintel COVID-19 exposure anxiety and lifestyle impact index, 28 February 2020-12 March 2021
                                                                                      • Lifestyle impact concerns high across all age groups
                                                                                          • Figure 35: Proportion of adults indicating higher levels of anxiety (‘4’ or ‘5’) about how the outbreak could impact their lifestyle, by age, 28 February 2020-26 March 2021
                                                                                      • Impact on Household Finances

                                                                                          • Financial wellbeing has hit new heights despite the crisis…
                                                                                            • Figure 36: The financial wellbeing index, January 2015-March 2021
                                                                                          • …but many still feel worse off than a year ago
                                                                                            • Figure 37: Changes in household finances, January 2015-March 2021
                                                                                          • One in six have been furloughed at least once
                                                                                            • Figure 38: Impact of COVID-19 on employment and working patterns, February 2021
                                                                                          • Income trends point to a two-track crisis and recovery
                                                                                            • Figure 39: Impact of COVID-19 on personal income, February 2021
                                                                                          • Cuts to discretionary spending have kept household finances afloat…
                                                                                            • Figure 40: Impact of COVID-19 on household debts and spending, February 2021
                                                                                          • …and led to a record savings boost
                                                                                            • Figure 41: Impact of COVID-19 on the value of savings in different products, February 2021
                                                                                          • Most are optimistic about the year ahead…
                                                                                            • Figure 42: The financial confidence index, January 2015-March 2021
                                                                                          • …and looking forward to getting back to experiences
                                                                                            • Figure 43: Financial priorities when COVID-19 is no longer a concern, February 2021
                                                                                        • How the Pandemic Shaped Consumer Behaviour

                                                                                          • Attitudes towards personal appearance have relaxed
                                                                                            • Figure 44: Change in priorities since the start of the COVID-19 outbreak, 4-12 February 2021
                                                                                          • Behavioural shifts have impacted spend on BPC
                                                                                            • Figure 45: Spend on consumer goods compared to before the COVID-19 outbreak, 1-12 April 2021
                                                                                            • Figure 46: Spend on beauty products and toiletries compared to before the COVID-19 outbreak, December 2020-April 2021
                                                                                          • The online purchase of BPC mainstreamed in 2020
                                                                                              • Figure 47: Changes in online beauty/grooming purchasing since the start of the COVID-19 outbreak, June 2020
                                                                                            • Lockdown shopping trends have altered over time
                                                                                                • Figure 48: Change in shopping behaviours since the start of the COVID-19 outbreak, April 2020 and April 2021
                                                                                              • Consumers are now keen to return to hair and beauty salons
                                                                                                  • Figure 49: Activities consumers are looking forward to following the lockdown, 1-12 April 2021
                                                                                                • An economic downturn will drive savvy shopping behaviours
                                                                                                    • Figure 50: Ways in which BPC spending habits will change in the face of an income squeeze, 18-30 June 2020
                                                                                                  • Physical and mental health have gained importance
                                                                                                    • Figure 51: Planned changes to consumer behaviour once COVID-19 is no longer a concern, 18 February-2 March 2021
                                                                                                • Changes in Daily Beauty and Grooming Routines

                                                                                                  • Respond to the heightened desire for a speedy routine
                                                                                                    • Figure 52: Change in time spent on daily beauty/grooming routine compared to before COVID-19, March 2021
                                                                                                  • Reimagine daily beauty and grooming timings
                                                                                                    • Use stores to strengthen BPC’s ties to wellbeing
                                                                                                      • Figure 53: Change in time spent on daily beauty/grooming routine compared to before the COVID-19 outbreak, by age and gender, March 2021
                                                                                                    • Help women embrace a natural beauty aesthetic
                                                                                                      • Figure 54: Beauty/grooming routine changes since the start of the COVID-19 outbreak, by gender, March 2021
                                                                                                    • Tap into new DIY capabilities and wellbeing engagement
                                                                                                      • Figure 55: Beauty/grooming routine changes since the start of the COVID-19 outbreak, by change in time spent on daily routines, March 2021
                                                                                                    • Recognise that lockdown habits have longevity
                                                                                                      • Figure 56: Planned changes to beauty/grooming routines once COVID-19 is no longer a concern, March 2021
                                                                                                  • Channels Used to Purchase Beauty and Grooming Products

                                                                                                    • Explore new ways of selling BPC online
                                                                                                      • Figure 57: Channels used to purchase beauty/grooming products since the start of the COVID-19 outbreak, by gender, March 2021
                                                                                                    • Create a more compelling online experience for men
                                                                                                      • Put a spotlight on own-label in-store and online
                                                                                                        • Make online shopping easier for older shoppers
                                                                                                          • Figure 58: Channels used to purchase beauty/grooming products since the start of the COVID-19 outbreak, by age, March 2021
                                                                                                      • Motivations behind Beauty and Grooming Purchases

                                                                                                        • Help consumers navigate the return of social occasions
                                                                                                          • Figure 59: Beauty/grooming purchase motivations since the start of the COVID-19 outbreak, March 2021
                                                                                                        • Be creative to tap into the lipstick effect
                                                                                                          • Figure 60: Beauty/grooming purchase motivations since the start of the COVID-19 outbreak, by gender, March 2021
                                                                                                        • Cater to the growing demand for responsive BPC
                                                                                                          • Figure 61: Beauty/grooming purchase motivations since the start of the COVID-19 outbreak, by age, March 2021
                                                                                                      • The Impact on the Beauty and Grooming Shopping Experience

                                                                                                        • Invest in stores as consumers crave retail experiences
                                                                                                          • Figure 62: Beauty/grooming purchase disruption since the start of the COVID-19 outbreak, March 2021
                                                                                                        • Explore new ways to provide in-store product trials
                                                                                                          • Create a more compelling environment for gift buying in 2021
                                                                                                            • Marry the online and offline experience
                                                                                                              • Figure 63: Beauty/grooming purchase disruption since the start of the COVID-19 outbreak, by age, March 2021
                                                                                                          • Priority Shifts in Beauty and Grooming Purchases

                                                                                                            • Embrace the consumer desire for value
                                                                                                              • Figure 64: Change in priorities when purchasing beauty/grooming products since the start of the COVID-19 outbreak, March 2021
                                                                                                            • Tackle availability with online marketplaces
                                                                                                              • The pandemic was a call to action for young consumers
                                                                                                                • Figure 65: Change in eco/ethical priorities when purchasing beauty/grooming products since the start of the COVID-19 outbreak, by age, March 2021
                                                                                                              • Target young women with ease and enjoyment claims
                                                                                                                • Figure 66: Change in product priorities when purchasing beauty/grooming products since the start of the COVID-19 outbreak amongst women, by age, March 2021
                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                • Abbreviations
                                                                                                                  • Consumer research methodology
                                                                                                                  • Appendix – Central Forecast Methodology

                                                                                                                    • Market forecast and prediction intervals
                                                                                                                      • Figure 67: Forecast for the value of the UK BPC market, 2015-25
                                                                                                                    • Market drivers and assumptions
                                                                                                                      • Figure 68: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared 12 March 2021)
                                                                                                                    • Forecast methodology
                                                                                                                    • Appendix – COVID-19 Scenario Performance Methodology and Assumptions

                                                                                                                      • Scenario performance
                                                                                                                        • Figure 69: COVID-19 scenario forecasts for the UK BPC market, 2015-25
                                                                                                                      • Rapid COVID-19 recovery, central and extended COVID-19 disruption scenarios outline
                                                                                                                        • Scenario methodology

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