Author: Mintel Group Ltd.
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Beauty and Personal Care Retailing - Europe - January 2021

OVERVIEW
Key issues covered in this Report
Areas covered in this Report
Consumer research
Technical notes
Retail sector sizes
Financial definitions
Abbreviations
VAT rates
Figure 1: VAT rates around Europe, 2016-21
EXECUTIVE SUMMARY – EUROPE – THE MARKET
 THE MARKET
Sector size and forecast
Figure 2: Europe: health and beauty specialists, sales, excluding VAT, 2015-19
Figure 3: Europe: health and beauty specialists, forecast sales, excluding VAT, 2020-25
Beauty and personal care specialists
Figure 4: Europe: beauty and personal care specialists, sales, excluding VAT, 2015-19
Figure 5: Europe: beauty and personal care specialists, forecast sales, excluding VAT, 2020-25
Spending on personal care goods and services
Figure 6: Europe: consumer spending on health and beauty products and services (including VAT), 2015-20
Figure 7: Europe: consumer spending on health and beauty products and services (including VAT), 2015-19
Figure 8: Europe: spending on personal care goods and services as % of all consumer spending, 2019
Inflation
Figure 9: Europe: Inflation in personal care, annual % change, 2015-20
Figure 10: Europe: inflation in personal care goods, annual % change, 2015-20
Online
Figure 11: Europe: estimated online sales of beauty and personal care products, 2020
 LEADING SPECIALISTS
Figure 12: Europe: leading health and beauty specialists, sales, 2015/16-2019/20
Figure 13: Europe: leading health and beauty specialists, outlets, 2015/16-2019/20
Market shares
Figure 14: Europe: top 15 health and beauty specialists’ shares of all health and beauty specialists’ sales, 2015-19
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
What they bought
Figure 15: Europe: products bought in the last 12 months by country, October 2020
Online vs in-store
Figure 16: Europe: buyers of beauty and personal care products in-store and online, October 2020
Store-based retailers
Figure 17: Europe: leading specialist beauty & personal care retailers and share of shoppers, October 2020
Figure 18: Europe: share of BPC shoppers using specialists, supermarkets, department stores and online only players, by country, October 2020
Online-only retailers
Figure 19: Europe: retailers used to buy beauty and personal care products online, October 2020
Attitudes to innovations in BPC
Figure 20: Europe: attitudes to shopping for beauty and personal care, October 2020
Figure 21: Europe: attitudes to shopping for beauty and personal care, October 2020
EXECUTIVE SUMMARY – EUROPE – LAUNCH ACTIVITY AND INNOVATIONS
Online BPC reaches new heights
Social shopping on the rise
Figure 22: Facebook Shops Live Shopping Features, 2020
Technology enables a greater shopping experience from home
Debenhams launches a virtual&nbsp;beauty&nbsp;room&nbsp;ahead of Black Friday
The Perfume Shop uses video technology to stay in touch with customers
Estée Lauder launched an AI-powered chatbot 
The Perfume Shop sees boost in sales from virtual shopping 
Douglas allows retailers and brands to sell their products on website
Convenience: a defining trend
Superdrug fast-tracks its same-day delivery service for urgent orders 
Figure 23: Superdrug Stuart Delivery, 2020
Sephora launches delivery service to 23 cities 
Debenhams&nbsp;rolls out new delivery option ahead of Black Friday
Action to trial click and collect allowing customers to fill ‘virtual baskets’ online
Sustainability gains traction
L’Oréal rolls out recycling bins across 1,000 UK stores 
Kaufland eliminates microplastics from cosmetic and personal care ranges 
Amazon launches ‘eco-friendly’ shopping platform 
Refills are gaining popularity
NIVEA and dm drugstores partner to install shower cream-refill stations 
Figure 24: Nivea refill station
L'Occitane tests product refilling in store 
Holland &amp; Barrett’s clean beauty store in Birmingham offers refill stations and demo sinks
Carrefour Polska partners with YOPE to launch its first shower essentials-refilling station
Figure 25: Carrefour Polska
THE IMPACT OF COVID-19 ON BEAUTY AND PERSONAL CARE RETAILING
Short, medium and long term impact on the sector
Figure 26: Short, medium and long term impact of COVID-19 on beauty and personal care retailing, February 2021
 OPPORTUNITIES AND THREATS
But the online experience can go so much further
Virtual consultations
Figure 27: Bobbi Brown Virtual Services Homepage, August 2020
Product recommendations using AI 
Figure 28: The Inkey List #askINKEY Campaign, 2020
Figure 29: Boots No7 Personalised Skin Analysis, 2020
Adding the human touch with live-streaming
Making beauty shopping more fun
Making shopping safe will pay off
Cash-strapped consumers may restrict BPC spend
 HOW COVID-19 WILL RESHAPE THE INDUSTRY
Delivery and click-and-collect will continue to ride on convenience 
Social media will play a greater role
The store-experience will need to be even better
BPC online audience has grown and specialists must embrace this
Sustainability will continue to be high on the agenda
Health and beauty specialists struggle in 2020
Figure 30: Europe Big Five: total health and beauty specialist retailers’ sales and forecast, 2015-25
Figure 31: Europe Big Five: total health and beauty specialist retailers’ sales and forecast, by country, 2015-25
 THE IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR ACROSS EUROPE
Concerns around exposure to COVID-19 rise as second wave hits
Figure 32: Europe: those extremely worried about the risk of being exposed to COVID-19, March 2020-January 2021*
 THE FINANCIAL IMPACT OF COVID-19
Furlough and job losses
Spending falls and consumers look to save where possible
Figure 33: Europe: financial impact of COVID-19, January 2021*
 CHANGES TO SHOPPING BEHAVIOUR
Non-essential spending reduced
Desire to spend less time in-store
Cash is no longer king
Localism rises up the agenda
Online shopping receives major boost
Second wave leads to renewed stockpiling
Figure 34: Europe: changes to shopping behaviour since the start of the COVID-19 outbreak, January 2021*
Consumers are trying not to handle/touch products in-store
Figure 35: Europe: people who would feel uncomfortable handling/touching products in-store, November 2020*
 SPENDING INTENTIONS
Beauty sector sees planned spending decrease
Figure 36: Net balance* of expected spending on selected items in the next month, January 2021**
German consumers the only group planning to spend more on beauty 
Figure 37: Europe: net balance* of expected spending on beauty products and toiletries in the next month, January 2021**
 HOW THE CRISIS IS IMPACTING ON KEY CONSUMER SEGMENTS
Women and older people most concerned about the pandemic
Figure 38: Europe: those extremely worried about the risk of being exposed to COVID-19, by gender and age, January 2021*
Women and older age groups also trying to limit time in-store
Figure 39: Europe: consumers trying to limit the time they spend in-store, by gender and age, January 2021*
Online shopping boom is relatively uniform
Figure 40: Europe: consumers shopping more online, by gender and age, January 2021*
Younger and middle-aged consumers more likely to be cutting back on non-essential spend
Figure 41: Europe: consumers cutting back on non-essential spending, by gender and age, January 2021*
 COVID-19: MARKET CONTEXT
UK
France
Germany
Italy
Spain
FRANCE
Overview
Key issues covered in this Report
Areas covered in this Report
 EXECUTIVE SUMMARY
The market
Consumer spending 
Figure 42: France: consumer spending on beauty and personal care (including VAT), 2015-20
Sector size and forecast 
Figure 43: France: health & beauty specialists’ sales (excluding VAT), 2015-20
Channels of distribution 
Companies and brands
Market shares
Figure 44: France: leading beauty specialists: shares of all beauty specialists’ sales, 2019
Online vs in-store
Retailer trends
Online
The consumer
Beauty and personal care products purchased
Figure 45: France: beauty and personal care products purchased in the last 12 months by gender, October 2020
Online and in-store shopping for beauty and personal care products 
Figure 46: France: in-store and online buyers of beauty and personal care products, by gender, October 2020
Where beauty and personal care products are purchased
Figure 47: France: where beauty and personal care products were purchased, October 2020
Attitudes to innovations in BPC 
Figure 48: France: interest in in-store BPC shopping innovations, October 2020
Figure 49: France: interest in online BPC shopping innovations, October 2020
 ISSUES AND INSIGHTS
COVID-19 brings BPC online retailing to the fore 
An opportunity in DIY beauty
 THE MARKET – KEY TAKEAWAYS
COVID-19 impacts economic growth
Weak growth in BPC market spending 
BPC specialists have been relatively resilient
Channels of spending vary by category
 CONSUMER SPENDING
French economy hit hard by COVID-19
Drop in spending less severe
Spending on beauty was already weak
Figure 50: France: consumer spending on beauty and personal care (including VAT), 2015-20
 SECTOR SIZE AND FORECAST
Figure 51: France: health & beauty specialists’ sales (excluding VAT), 2015-20
Figure 52: France: health & beauty specialists’ sales, Forecasts (excluding VAT), 2021-25
 CHANNELS OF DISTRIBUTION
 INFLATION
Figure 53: France: consumer prices * of personal care items, annual % change, 2015-19
Figure 54: France: consumer price inflation (HICP *) on personal care products and services, annual % change, January 2019-November 20
 COMPANIES AND BRANDS – KEY TAKEAWAYS
Sephora dominates a fragmented market
COVID-19 decimates in-store sales
Retailers find new ways to connect with customers
Retailers tapping into interest in sustainability and natural products 
Enormous growth in online sales
 LEADING PLAYERS
2020, a terrible year for all
An overview of the key players
How are retailers responding to the COVID-19 crisis?
Reaching customers online
Sustainability and clean beauty
Keeping stores safe and customers shopping
A choice of delivery options
Figure 55: France: leading beauty specialists, sales, 2015-19
Figure 56: France: leading beauty specialists, outlets, 2015-19
 MARKET SHARES
Figure 57: France: leading beauty specialists: shares of all beauty retailers’ sales, 2015-19
 ONLINE
Online activity 
Figure 58: France: online buyers of beauty and personal care products, by age and gender, October 2020
Online BPC sales
Leading online players 
Figure 59: France: search interest on Google, selected BPC retailers, last 12 months, January 2020-January 2021
 THE CONSUMER – KEY TAKEAWAYS
Consumption increases with age and remains highest among women
Huge increase in online shopping for BPC during COVID-19 pandemic
Stores remain the main point of sale
Usage of Amazon surged over the last year 
Safe shopping and sustainability are high priorities
 BEAUTY AND PERSONAL CARE PRODUCTS PURCHASED
Almost everyone buys beauty and personal care items
Figure 60: France: beauty and personal care products purchased in the last 12 months, October 2020
Haircare, beauty and skincare predominantly bought by women
Figure 61: France: beauty and personal care products purchased in the last 12 months by gender, October 2020
Age plays an important role for beauty and personal care products
Figure 62: France: beauty and personal care products purchased in the last 12 months by age group, October 2020
 ONLINE AND IN-STORE SHOPPING FOR BPC PRODUCTS 
Enormous boost to online resulting from COVID-19 lockdowns
The store-experience will need to be even better
Figure 63: France: in-store and online buyers of beauty and personal care products, October 2020
Women remain the predominant online shoppers
Figure 64: France: in-store and online buyers of beauty and personal care products, by gender, October 2020
Figure 65: France: online buyers of beauty and personal care products, by generation, October 2020
 WHERE BEAUTY AND PERSONAL CARE PRODUCTS ARE PURCHASED
Supermarkets/hypermarkets used by three quarters of consumers
Almost 60% shopped at a specialist retailer
Department stores less popular than Spain, Italy or UK
Figure 66: France: where beauty and personal care products were purchased, October 2020
Figure 67: France: where beauty and personal care products were purchased, October 2020 vs November 2019
Figure 68: France: demographics of shoppers at selected retailers of BPC products, specialists, October 2020
Figure 69: France: demographics of shoppers at selected retailers of BPC products, non-specialists, October 2020
Figure 70: France: demographics of shoppers at selected retailers of BPC products, by gender and age group, October 2020
Where people shopped and what they bought
Figure 71: France: beauty and personal care products purchased by retailer used, October 2020
 ATTITUDES TO INNOVATIONS IN BPC
In-store
Clean and green 
Safety issues
Figure 72: France: interest in in-store BPC shopping innovations, October 2020
Online 
Potential for digital tools
Excess packaging a concern
Figure 73: France: interest in online BPC shopping innovations, October 2020
Figure 74: France: interest in online BPC shopping innovations, by age and gender, October 2020
Interest in innovations by retailer shopped
Figure 75: France: interest in in-store BPC shopping innovations by retailer used, October 2020
Figure 76: France: interest in online BPC shopping innovations by retailer used, October 2020
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations 
Data sources 
ITALY
 OVERVIEW
Key issues covered in this Report
Areas covered in this Report
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 77: Italy: Annual % change in total consumer spending on beauty and personal care and total consumer spending, 2015-20
Sector size and forecast 
Figure 78: Italy: annual % change in retail sales, 2015-20
Channels of distribution 
Companies and brands
Key metrics
Market shares
Figure 79: Italy: leading BPC specialists’ estimated share of all spending on beauty and personal care, 2019
Online
The consumer
Beauty and personal care products purchased
Figure 80: ITALY: bEAUTY AND PERSONAL CARE PRODUCTS PURCHASED IN THE LAST 12 MONTHS, November 2019 and October 2020
Online and in-store shopping for beauty and personal care products
Figure 81: Italy: in-store and online buyers of beauty and personal care products, November 2019 and October 2020
Where beauty and personal care products are purchased
Figure 82: Italy: where beauty and personal care products were purchased, November 2019 and October 2020
Attitudes to innovations in BPC retailing
Figure 83: Italy: attitudes towards shopping in-store for beauty/personal care products, October 2020
Figure 84: Italy: attitudes towards shopping online for beauty/personal care products, October 2020
 ISSUES AND INSIGHTS 
COVID-19 impact on livelihoods and lifestyles will hit BPC retail
Economic impact will drive increased focus on value
Structural shifts will lead to lower store footfall and stronger online demand
A growing localism/nationalism movement
What advantages can multichannel retailers leverage over online-only rivals?
Online-only penetration is growing fast
Amazon increases its penetration of the beauty market
Expertise combined with personal and personalised service
Online can complement the offline offer
Blurring the lines between physical and digital
The ability to personalise products and offers
Multi-channel business models cover all bases but role of stores is changing
 THE MARKET – KEY TAKEAWAYS
Italian consumer spending power under pressure
Retailers are having to adjust their product mix
Sector declines by 7.1% in 2020
Pandemic reverses trend away from supermarkets
 CONSUMER SPENDING
Figure 85: Italy: consumer spending on beauty and personal care (including VAT), 2015-20
 SECTOR SIZE AND FORECAST
Figure 86: Italy: health & beauty specialists’ sales (excluding VAT), 2015-20
Figure 87: Italy: health & beauty specialists’ sales, Forecasts (excluding VAT), 2021-25
 INFLATION
Figure 88: Italy: consumer prices * of personal care items, annual % change, 2015-19
Figure 89: Italy: consumer price inflation (HICP *) on personal care products and services, annual % change, January 2019-December 2020
 CHANNELS OF DISTRIBUTION
 COMPANIES AND BRANDS – KEY TAKEAWAYS
Increased online presence should be a priority for Acqua &amp; Sapone
Douglas and Tigotà have performed the best
Other players have sought to differentiate themselves
Online
 LEADING PLAYERS
Acqua &amp; Sapone at online disadvantage…
…while Tigotà embraced the online channel
Douglas Group recognises importance of online for the future
Other players
Figure 90: Italy: leading beauty specialists, sales, 2015-19
Figure 91: Italy: Leading beauty specialists, outlets, 2015-19
 MARKET SHARES
Figure 92: Italy: leading BPC specialists’ estimated share of all spending on beauty and personal care, 2015-19
 ONLINE
Online activity 
Shopping online
Online BPC sales
Leading online players
Figure 93: Italy: search interest on Google, selected BPC retailers, last 12 months, January 2020-January 2021
 THE CONSUMER – KEY TAKEAWAYS
COVID pandemic drives strong shift to online
Online buying shifts towards m-commerce
Strong appetite for contactless technology in-store
Opportunities in trying to replicate the in-store experience online
Sustainability is high on consumer agendas
 BEAUTY AND PERSONAL CARE PRODUCTS PURCHASED
Beauty and personal care product purchasing is universal
Figure 94: Italy: beauty and personal care products purchased in the last 12 months, November 2019 vs October 2020
Women are principal buyers of haircare, skincare and beauty products
Figure 95: ITALY: bEAUTY AND PERSONAL CARE PRODUCTS PURCHASED IN THE LAST 12 MONTHS, by gender, October 2020
 ONLINE AND IN-STORE SHOPPING FOR BEAUTY AND PERSONAL CARE PRODUCTS 
Dramatic increase in online shopping in 2020
Figure 96: Italy: in-store and online buyers of beauty and personal care products, November 2019 vs October 2020
Women more likely to shop online
Figure 97: Italy: in-store and online buyers of beauty and personal care products, by gender, October 2020
Online purchasing still concentrated on younger groups
Figure 98: Italy: in-store and online buyers of beauty and personal care products, by age, October 2020
Strongest growth in online purchasing among over-55s
Figure 99: Italy: online buyers of beauty and personal care products, by age, November 2019 vs October 2020
 WHERE BEAUTY AND PERSONAL CARE PRODUCTS ARE PURCHASED
Specialists still the preferred outlet but generalists made strong gains in 2020
Figure 100: Italy: where beauty and personal care products were purchased, November 2019 vs October 2020
Where people shopped and what they bought
Figure 101: Italy: where beauty and personal care products were purchased (specialist retailers), by beauty and personal care products purchased, October 2020
Figure 102: Italy: where beauty and personal care products were purchased (non-specialist retailers), by beauty and personal care products purchased, October 2020
 ATTITUDES TO INNOVATIONS IN BPC RETAILING
In-store
Hygienic in-store testing is a key priority
Payment innovation offers customer and business benefits
Product refill stations tap into growing sustainability trend
Product information particularly important to older buyers
Figure 103: Italy: attitudes towards shopping in-store for beauty/personal care products, October 2020
Figure 104: Italy: attitudes towards shopping in-store for beauty/personal care products, by products purchased, October 2020
Online
Sustainability in online packaging is an issue
Personalisation trend continues to offer opportunities
Online tools have potential to bridge gap between stores and digital
Figure 105: Italy: attitudes towards shopping online for beauty/personal care products, October 2020
Figure 106: Italy: attitudes towards shopping online for beauty/personal care products, by products purchased, October 2020
 APPENDIX
Abbreviations
Data sources
SPAIN
 OVERVIEW
Key issues covered in this Report
Areas covered in this Report
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 107: Spain: annual % change in total consumer spending on beauty and personal care and total household spending, 2014-20
Sector size and forecast 
Figure 108: Spain: annual % change in beauty specialists’ sales and total retail sales, 2014-20
Channels of distribution
Inflation
Figure 109: Spain: consumer price inflation on personal care products and services, annual % change, 2014-20
Companies and brands
Key metrics
Market shares 
Figure 110: Spain: leading BPC specialists’ shares of all cosmetics and perfumery specialists’ sales, 2019
Online
The consumer 
Beauty and personal care products purchased
Figure 111: Spain: beauty and personal care products purchased in the last 12 months, October 2020
Online and in-store shopping for beauty and personal care products 
Figure 112: Spain: in-store and online buyers of beauty and personal care products, October 2020
Where beauty and personal care products are purchased
Figure 113: Spain: where beauty and personal care products were purchased, October 2020
Attitudes to innovations in BPC
Figure 114: Spain: in-store beauty and personal care innovations, October 2020
 ISSUES AND INSIGHTS 
COVID moves focus from appearance to hygiene
Optimising physical and digital retail spaces
 THE MARKET – KEY TAKEAWAYS
Personal care spending drops as pandemic hits
Specialist retailers see sales plummet as stores close
Inflation impacted services more than products
Lockdowns make supermarkets more dominant and drive online growth
 CONSUMER SPENDING
Figure 115: Spain: consumer spending on beauty and personal care (incl. VAT), 2014-20
 SECTOR SIZE AND FORECAST
Figure 116: Spain: health & beauty specialists, sales (excluding VAT), 2015-20
Figure 117: Spain: health & beauty specialists’ sales, forecasts, excluding VAT, 2020-25
 INFLATION
Figure 118: Spain: consumer prices* of personal care items, annual % change, 2014-20
Figure 119: Spain: consumer price inflation (HICP *) on personal care products and services, annual % change, January 2019-November 2020
 CHANNELS OF DISTRIBUTION
 COMPANIES AND BRANDS – KEY TAKEAWAYS
A fragmented market
Store sales plummet as pandemic strikes
Online experiences unprecedented growth
 LEADING PLAYERS
Douglas Group
Druni
Clarel
Other players
Figure 120: Spain: leading beauty specialists, sales, 2016-19
Figure 121: Spain: leading beauty and personal care specialists, outlets, 2016-20
 MARKET SHARES
Figure 122: Spain: leading beauty specialists: shares of all beauty specialists’ sales, 2016-19
 ONLINE
Online activity 
Figure 123: Spain: online buyers of beauty and personal care products, by age and gender, October 2020
Online BPC sales
Leading online players 
Figure 124: Spain: search interest on Google, selected BPC retailers, 12 months, January 2020-December 2020
 THE CONSUMER – KEY TAKEAWAYS
Beauty and personal care purchasing still dominated by women
Shoppers are turning away from make-up and focusing on self-care
Almost 50% of beauty and personal care shoppers shop online
Specialists and online retailers appeal to younger consumers
Hygiene is a pressing concern for consumers in 2020
 BEAUTY AND PERSONAL CARE PRODUCTS PURCHASED
Personal care products the most widely used
Figure 125: Spain: where beauty and personal care products were purchased, October 2020
Beauty and skincare products still predominantly bought by women
Figure 126: Spain: changes in beauty and personal care products purchased 2020 vs 2019, by gender, October 2020
Older consumers remain a key demographic
Figure 127: Spain: beauty and personal care products purchased in the last 12 months, by age group, October 2020
 ONLINE AND IN-STORE SHOPPING FOR BPC PRODUCTS
In-store shopping remains first choice in Spain
Figure 128: Spain: in-store and online buyers of beauty and personal care products, October 2020
Women shopping more online than men
Figure 129: Spain: in-store and online buyers of beauty and personal care products, by gender, October 2020
Older shoppers reliant on shopping in-store
Figure 130: Spain: in-store and online buyers of beauty and personal care products, by age group, October 2020
 WHERE BEAUTY AND PERSONAL CARE PRODUCTS ARE PURCHASED
Supermarkets/hypermarkets still dominate the sector
Figure 131: Spain: type of retailer used to purchase beauty and personal care products, October 2020
Younger consumers turn to specialists and online retailers
Figure 132: Spain: type of retailer used to purchase beauty and personal care products, by age, October 2020
Where people shopped and what they bought
Figure 133: Spain: specialists used and products bought, October 2020
Figure 134: Spain: non-specialists used and products bought, October 2020
 ATTITUDES TO INNOVATIONS IN BPC
In-store
Hygiene and traceability are areas of interest for consumers
Figure 135: Spain: in-store buyers of beauty and personal care products interest in innovations, October 2020
Online
Sustainability a key concern when it comes to online retail
Figure 136: Spain: online buyers of beauty and personal care products interest in innovations, October 2020
Improved sustainability, hygiene and product information have broad appeal
Figure 137: Spain: online buyers of beauty and personal care products interest in innovations, by age, October 2020
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations 
Data sources 
UK
 OVERVIEW
Key issues covered in this Report
COVID-19: market context
Economic and other assumptions
Products covered in this Report
 EXECUTIVE SUMMARY
The market
COVID-19 causes disruptions to BPC retail market
Figure 138: Short, medium and long-term impact of COVID-19 on the beauty and personal care markets, January 2021
Fall in beauty spending drives decline in market
Figure 139: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2015-25
Specialists suffer big decline
Figure 140: Health and beauty specialists’ sales (including VAT), 2015-25
COVID-19 leads to soaring demand for online
Figure 141: Estimated market size and forecast for online consumer spending on beauty and personal care products, split by beauty and personal care, 2016-20
Companies and brands
Charlotte Tilbury ramps up influencer marketing
Boots launches virtual makeup and skincare consultation service 
Boots is the most trusted BPC retailer, but could do more to stand out
Figure 142: Attitudes towards and usage of selected brands, December 2020
The consumer
Rise in personal care purchasing 
Figure 143: Beauty and personal care items purchased in the last 12 months, October 2020
Value brands most popular despite decline in purchasing
Figure 144: Beauty and personal care brand types purchased in the last 12 months, October 2020
Shift towards buying online
Figure 145: How they purchased beauty and personal care products in the last 12 months, October 2020
Supermarkets continue to dominate
Figure 146: Where they purchased beauty and personal care items in the last 12 months, October 2020
Amazon grows in popularity
Figure 147: Where they purchased beauty and personal care items in the last 12 months, October 2020
Growing importance of anti-viral products 
Figure 148: Changes in behaviour since COVID-19 outbreak, October 2020
Women most drawn to in-store innovations 
Figure 149: Interest in innovations when shopping for beauty or personal care products, October 2020
Focus on hygiene when shopping 
Figure 150: Shopping behaviour when buying beauty and personal care products, October 2020
 ISSUES AND INSIGHTS
Impact of COVID-19 on the beauty and personal care market
How can retailers use innovation to stand out and drive growth?
 THE MARKET – KEY TAKEAWAYS
COVID-19 causes disruptions to BPC retail market
Fall in beauty spending drives decline in market
Specialists suffer big decline
COVID-19 leads to soaring demand for online
 MARKET SIZE AND FORECAST
COVID-19 causes disruptions to BPC retail sector
Figure 151: Short, medium and long-term impact of COVID-19 on the beauty and personal care markets, (prepared December 2020)
UK beauty and personal care spending drops 3% in 2020
Figure 152: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2015-25
Figure 153: Market size and forecast for consumer spending on beauty and personal care products (including VAT), at current and constant prices, 2015-25
Slow recovery anticipated
UK’s exit from the EU will have a smaller impact on BPC than the pandemic
Market drivers and assumptions 
Figure 154: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 11 January 2021)
Learnings from the last recession
Figure 155: Market size and forecast for consumer spending on beauty and personal care products (including VAT), 2007-12
Forecast methodology
 MARKET SEGMENTATION
Fall in beauty spending drives decline in market
Figure 156: Market size and forecast for consumer spending on beauty products (including VAT), 2015-25
Figure 157: Market size and forecast for consumer spending on beauty products (including VAT), at current and constant prices, 2015-25
Beauty category performance 
Figure 158: Consumer spending on beauty products (incl VAT), by category, 2016-20
Colour cosmetics impacted by lack of usage occasions
Facial skincare sees increased usage routines
Fragrances hit hard by lack of social occasions
Hand, body and footcare benefits from boost to wellbeing
Personal care spend resilient
Figure 159: Market size and forecast for consumer spending on personal care products (including VAT), 2015-25
Figure 160: Market size and forecast for consumer spending on personal care products (including VAT), at current and constant prices, 2015-25
Personal care category performance
Figure 161: Consumer spending on personal care products (incl VAT), by category, 2016-20
Haircare sees reduced purchasing due to lockdowns
Oral hygiene continues in decline due to price sensitivities
Soap, bath and shower benefits from focus on hygiene
Shaving &amp; hair removal drops down list of priorities
Deodorants usage impacted by increased time at home 
Hair colourants boosted by closure of hair salons
Suncare suffers from lack of overseas holidays
Forecast methodology
 SECTOR SIZE AND FORECAST
Specialists suffer big decline 
Figure 162: Health and beauty specialists’ sales (including VAT), 2015-25
Figure 163: Health and beauty specialists’ sales (including VAT), at current and constant prices, 2015-25
Notes on Mintel’s sector size
Outlet and enterprise numbers
Figure 164: Health and beauty specialists’ outlet numbers, 2016-20
Figure 165: Health and beauty specialists’ enterprise numbers, 2016-20
Forecast methodology
 ONLINE 
COVID-19 leads to soaring demand for online
Figure 166: Estimated market size and forecast for online consumer spending on beauty and personal care products, 2015-25
Figure 167: Estimated market size and forecast for online consumer spending on beauty and personal care products, at current and constant prices, 2015-25
COVID-19 boosts online beauty engagement
Figure 168: Estimated market size and forecast for online consumer spending on beauty and personal care products, split by beauty and personal care, 2016-20
Online channels of distribution
Figure 169: Retail share of online consumer expenditure on beauty products, 2018-20
 CHANNELS TO MARKET
Grocers challenging beauty specialists’ dominance
Figure 170: Estimated distribution of spending on beauty and personal care products, 2020
Figure 171: Estimated distribution of spending on beauty and personal care products (including VAT), 2018-20
 MARKET DRIVERS
Personal care returns to inflation in 2019
Figure 172: Consumer price inflation, 2008-19
BPC category prices see sharp upturn in June 2020
Figure 173: Consumer price inflation, November 2019-November 2020
Wages outpace inflation in October
Figure 174: Real wage growth – Average weekly earnings vs inflation, 2016-20
Population trends
Figure 175: Population trends in the UK, 2020-30
COVID-19 impacts consumer financial confidence
Figure 176: Trends in how respondents would describe their financial situation, November 2019-December 2020
Concerns over future finances remain 
Figure 177: Concerns over future finance, December 2020
Consumers save more 
Figure 178: How consumers will spend extra money, December 2019 and December 2020
Consumers are shopping more online
Figure 179: COVID-19 behaviour changes, 8-16 December 2020
UK’s exit from the EU will have a smaller impact on BPC than the pandemic
 COMPANIES AND BRANDS – KEY TAKEAWAYS
Boots’ sales slip, while those at A.S. Watson grow
Sustainability remains relevant amid a pandemic 
Boots is the most trusted BPC retailer, but could do more to stand out
 LEADING SPECIALISTS
Boots’ sales slip, A.S. Watson-owned retailers’ revenue up
Figure 180: Leading specialist retailers’ net revenues (excluding VAT), 2015-19
Online beauty retailers
Figure 181: Leading online/home shopping specialist retailers’ net revenues (excl. VAT), 2015-19
Leading pharmacies by sales
Figure 182: Leading pharmacy chains’ net revenues (excl. VAT), 2015-19
Outlet numbers and sales per outlet
Figure 183: Leading specialist retailers’ outlet numbers, 2015-19
Figure 184: Leading specialists retailers’ estimated sales per outlet, 2015-19
Operating profits and margins
Figure 185: Leading specialist retailers’ operating profits, 2015-19
Figure 186: Leading specialist retailers’ operating margins, 2015-19
Figure 187: Leading specialist online/home shopping retailers’ operating profits, 2015-19
Figure 188: Leading specialist online/home shopping retailers’ operating margins, 2015-19
 LEADING NON-SPECIALISTS
Mainstream and discount grocers sector BPC sales grow
Department store sector BPC sales faltering
Figure 189: Leading non-specialist retailers’ estimated sales growth, by segment, 2019
Amazon BPC sales surge
Figure 190: Leading non-specialist retailers’ estimated beauty and personal care goods sales (excluding VAT), 2017-19
 MARKET SHARES
Competitive and fragmented market
Figure 191: Leading specialist and non-specialist retailers’ estimated market shares, 2019
Figure 192: Leading specialist and non-specialist retailers’ estimated share of all spending on BPC products, 2017-19
Note on market shares
 LAUNCH ACTIVITY AND INNOVATION
BPC brands ramp up virtual reality services amid store closures
Boots launches virtual makeup and skincare consultation service 
Pinterest launches virtual makeup ‘Try on’ feature, starting with lipstick
Figure 193: Pinterest AR tool, 2020
L’Oréal Paris launches a virtual makeup line that works on live video
Figure 194: L'Oréal AR makeup filter, 2020
Debenhams launches a virtual beauty room 
Boots to unveil first ever exclusively digital product launch
Brands work to support customers during pandemic
Lush offers free hand washes and delivery
Figure 195: Lush invited customers in for free hand washes, 2020
Superdrug fast tracks its same-day delivery service for urgent orders
Lush launches letterbox soap kits
Figure 196: Lush letterbox kits, 2020
Sustainability remains relevant amid a pandemic 
Boots launches new in-store product recycling scheme
Figure 197: Boots recycle scheme, 2020
L’Oréal launches makeup recycling initiative with TerraCycle across UK shops
Beauty brands repurpose factories
Jo Loves launches scented hand sanitiser
Medik8 reveals pocket-sized hand sanitisers for the vulnerable
Tan-Luxe stops production of tanning products to launch hand sanitisers
L'Occitane
Product launches 
Lush reveals first ever subscription box 
Figure 198: Lush subscription box, 2020
L’Oréal to launch AI personalised cosmetics device 
Figure 199: L’Oréal’s Perso device, 2020
 ADVERTISING AND MARKETING ACTIVITY
Total adspend declines in 2019
Figure 200: Recorded above-the-line advertising expenditure on beauty and personal care, total market, 2016-20
Boots top advertising spender in 2019
Charlotte Tilbury ramps up influencer marketing
Debenhams launches virtual beauty rooms to help customers in lockdown
Figure 201: Recorded above-the-line, online, display and direct mail total advertising expenditure on beauty and personal care, by top leading retailers, 2015-20
TV still dominates adspend in 2019, but digital growing
Figure 202: Recorded above-the-line advertising expenditure percentage on beauty and personal care, by media type, total market, 2019
Nielsen Ad Intel coverage
 BRAND RESEARCH
Brand map
Figure 203: Attitudes towards and usage of selected brands, December 2020
Key brand metrics
Figure 204: Key metrics for selected brands, December 2020
Brand attitudes: Superdrug offers good value
Figure 205: Attitudes, by brand, December 2020
Brand personality: Lush is seen as fun
Figure 206: Brand personality – Macro image, December 2020
Space NK seen as stylish
Figure 207: Brand personality – Micro image, December 2020
Brand analysis
Boots remains a popular and trusted BPC retailer
Figure 208: User profile of Boots, December 2020
Superdrug seen to offer good value
Figure 209: User profile of Superdrug, December 2020
L’Occitane seen as ethical
Figure 210: User profile of L’Occitane, December 2020
Lush is innovative
Figure 211: User profile of Lush, December 2020
Lookfantastic needs to do more to connect with customers
Figure 212: User profile of Lookfantastic, December 2020
Bobbi Brown seen as stylish
Figure 213: User profile of Bobbi Brown, December 2020
Space NK seen as cutting edge
Figure 214: User profile of Space NK, December 2020
 THE CONSUMER – KEY TAKEAWAYS
Shift in product purchasing reflects lifestyle changes
Shift towards buying online
Growing importance of anti-viral products 
Demand for diversity among Gen Z
 COVID-19’S IMPACT ON BPC CONSUMERS
Consumers spend more on healthcare products during lockdown
Figure 215: Consumer purchasing on healthcare and beauty products, 8-16 December 2020
People need alternatives for beauty services to look good for Zoom calls
Figure 216: Behaviours impacted by COVID-19, 8-16 December 2020
COVID-19 accelerates online shopping…
Figure 217: Changes in consumer behaviours due to COVID-19, 8-16 December 2020
…forcing brands to engage with consumers in a different way amid lockdowns
Figure 218: Use of top 5 social media networks in the last 3 months, 2017-20
Consumers worry about exposure to the virus
Figure 219: How worried consumers are about being exposed to COVID-19, 8-16 December 2020
 WHAT THEY BUY
Rise in personal care purchasing 
Figure 220: Beauty and personal care items purchased in the last 12 months, October 2020
Shift in product purchasing reflects lifestyle changes
Figure 221: Beauty and personal care items purchased in the last 12 months, October 2019 and October 2020
Rise in beauty purchasing among young women 
Figure 222: Beauty buyers, by gender and age, October 2019 and October 2020
Increase in repertoire of products purchased
Figure 223: Repertoire of beauty and personal care items purchased in the last 12 months, October 2019 and October 2020
 BRAND TYPES PURCHASED
Value brands most popular despite decline in purchasing
Figure 224: Beauty and personal care brand types purchased in the last 12 months, October 2020
Decline in prestige fragrance purchasing
Premium own-label and brands bought online
Figure 225: Beauty and personal care brand types purchased in the last 12 months, by how they were purchased, October 2020
 HOW THEY SHOP 
Shift towards buying online
Figure 226: How they purchased beauty and personal care products in the last 12 months, October 2019 and October 2020
Women aged 45+ embrace online channel
Figure 227: How they purchased beauty and personal care products in the last 12 months, by age and gender, October 2020
Only a fifth purchased via a smartphone
Figure 228: How they purchased beauty and personal care products in the last 12 months, October 2020
Makeup most likely to be bought online
Figure 229: Beauty and personal care products purchased in the last 12 months, by how they shopped, October 2020
 WHERE THEY SHOP
Supermarkets continue to dominate
Figure 230: Where they purchased beauty and personal care items in the last 12 months, October 2020
Amazon grows in popularity…
…but Boots remains most used retailer 
Figure 231: Where they purchased beauty and personal care items in the last 12 months, October 2020
Women aged 45+ most loyal
Figure 232: Repertoire of where they purchased beauty and personal care items in the last 12 months, October 2019 and October 2020
 CHANGES IN BEHAVIOUR SINCE COVID-19 
Growing importance of anti-viral products 
Figure 233: Changes in behaviour since COVID-19 outbreak, October 2020
Young men invest in DIY BPC products
Figure 234: Agreement with statements about changes in behaviour since COVID-19 outbreak, by age and gender, October 2020
 INTEREST IN INNOVATIONS
Wide demand for letterbox-sized packages
Figure 235: Interest in innovations when shopping for beauty or personal care products, October 2020
Women most drawn to in-store innovations 
Figure 236: Interest in innovations when shopping for beauty or personal care products, by gender, October 2020
Highest earners keen on transparency of origin of products
Figure 237: Interest in innovations when shopping for beauty or personal care products, by generation, October 2020
Young drawn to online beauty consultations
 BEAUTY AND PERSONAL CARE SHOPPING BEHAVIOUR
Focus on hygiene when shopping 
Figure 238: Shopping behaviour when buying beauty and personal care products, October 2020
Affluent look for products to treat themselves
Figure 239: Agreement with statement ‘I look out for products to treat/pamper myself’, by annual household income, October 2020
Demand for diversity among Gen Z
Figure 240: Agreement with statement ‘I prefer to buy from brands/retailers that support diversity’, by generation, October 2020
Facial skincare buyers prefer to buy from brands that support diversity
Figure 241: Beauty and personal care retailing – CHAID – Tree output, October 2020
Methodology
Figure 242: Beauty and personal care retailing – CHAID – Table output, October 2020
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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