Although the UK is not immune to economic troubles, the beauty industry is benefiting from the British culture of recreational shopping. And new brands on the scene are keen to exploit this, says Julia Wray
Although still in the midst of a slow if sustained recovery, the UK economy is in a position of relative strength. And for the most part the beauty and personal care market reflected this in 2012. Commenting on prestige beauty, Anna Lukic, Business Analyst – Beauty at information and advisory services provider The NPD Group, says: “The market is usually related to the economy of a country and compared with Spain or Italy the UK economy is relatively strong. The prestige beauty market in France is growing too, but unlike the UK this is largely through price inflation.”
Figures provided by Euromonitor International show the UK beauty and personal care market grew 2.8% year on year to reach nearly £10.6bn. While this is not exactly a stratospheric increase, it is worth noting that UK beauty and personal care growth statistics for 2012 have been impacted by the lack of a tax hike in 2012.