Health and beauty will see its largest growth in a decade this year, according to a new report by Verdict Research.
The UK Health & Beauty Retailers 2008 report found that, despite a predicted slow in retail growth generally, consumer expenditure on health and beauty - which rose by 4.7% to £15.6bn in 2007 - looks set to make it the UK’s fastest growing retail sector in 2008
.A decrease in disposable income means that consumers are holding back from big purchases, leaving more money for smaller luxury purchases. As a result, people are trading up to more expensive products in categories like skincare. “If you’re holding back from buying expensive items, there is more scope for smaller indulgences. Health and beauty products are ideal for this: it doesn’t cost much to treat yourself and even premium brands are relatively accessible,” said the report’s author Carol Ratcliffe.
Another factor is the men’s market, which is predicted to grow by 7.7% in 2008 as wider availability encourages more men to try out new products.
According to the report, price inflation will not put consumers off buying health and beauty products. “Most of these products are seen as essential, so the majority of people will be spending more this year on health and beauty,” added Ratcliffe.