- Contents
- *Overview
- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: market context
- Economic and other assumptions
What you need to know
Significant lifestyle disruptions resulting from the pandemic have caused Canadians to pull back on their beauty purchases – beauty routines and standards relaxed while budgets constricted. Contending with non-essential retailer closures, many shoppers migrated online while others opted to visit essential retailers and possibly seek out alternative brands. Retailers are showcasing newer online tools like virtual product trials and livestreaming shopping events in order to keep a more personal connection with shoppers. As comfort levels with e-commerce continue to increase, Canadians will become more engaged with these new technological touchpoints and will expect these as a supplement to their in-person shopping experience.
Key issues covered in this Report
The impact of COVID-19 on consumer behaviour and beauty retailing
How an economic slowdown will impact beauty routines and consumer spending
Market factors impacting the beauty landscape in Canada
Consumer behaviours and attitudes relating to beauty product shopping
Definition
For the purposes of this Report, Mintel has used the following definitions:
Cosmetics – colour cosmetics and nail care products;
Haircare – shampoo, conditioner and hairstyling products, home hair colour;
Skincare – lotions, facial skincare and anti-aging products;
Soap, bath, shower products – body wash, bubble bath;
Sunscreen;
Fragrances;
Makeup accessories.
Mentions of a ‘past year’ timeframe refer to the 12-month period leading up to September 2020.
COVID-19: market context
This Report was written in January 2021. Consumer research was conducted in September 2020 and reflects consumer attitudes during the pandemic period.
At the time of writing, the number of confirmed cases in Canada had reached 761,226 as of January 27, 2021.
Economic and other assumptions
The subsequent analysis is driven by our analysts’ understanding of consumer behaviour in this market, alongside an evaluation of how exposed this sector is to the crisis, and how quickly demand will return to previous levels once a degree of normality returns to the market. Our economic assumptions are based on the updated global forecasts released by the International Monetary Fund (IMF) in June 2020. The IMF expects Canadian gross domestic product (GDP) to fall by 8.4% in 2020, recovering by 4.9% in 2021. Its April forecast predicted unemployment to rise sharply in Q2 2020, before recovering slightly to 7.5% by the end of the year, and to 7.2% by the end of 2021.
