Is inflation driving up demand for affordable makeup products and dupes?

The beauty industry has long been a domain where premium and affordable brands coexist, each catering to different customer segments. However, recent research from Mintel suggests that in the US, there is a subtle and evolving perception of value among beauty consumers.

This shift in consumer preferences is not only affecting the industry’s dynamic but also has implications for mental health and gender inclusivity. 

According to Mintel research, 74 per cent of makeup consumers now agree that affordable makeup products work just as well as their premium counterparts. This belief in the efficacy of affordable options indicates a shift away from the traditional view that higher-priced products are inherently superior.

This trend is more evident among younger consumers, with 33 per cent of those aged 18-24 and 35 per cent of those aged 25-34 stating that they have purchased makeup dupes due to being influenced by social media. 

While the rise of duplicates might seem like a threat to premium beauty brands, it’s not necessarily the case. Surprisingly, 41 per cent of those who believe in the comparable effectiveness of affordable and premium products still prefer to buy premium makeup, regardless of the price. This reflects a nuanced concept of value, where makeup users are willing to invest in higher-priced products for various reasons, including brand reputation, premium packaging, and the overall customer experience. 

Social media platforms, particularly Instagram, YouTube, and TikTok, have become influential in shaping beauty trends worldwide. Makeup enthusiasts, beauty influencers, and content creators regularly share their makeup routines and reviews of affordable products that perform similarly to their high-end counterparts. This has led to a growing approval of dupes and a shift in consumer spending habits.

Impact of inflation on makeup sales

The US color cosmetics market has been experiencing strong growth, with a 9 per cent increase in retail sales in 2022. This growth has been driven, in part, by inflation. However, it’s important to note that by the end of 2023, total retail sales in the US color cosmetics market are expected to increase by 10 per cent, surpassing US$13.6 million. This growth is largely attributed to consumers resuming pre-pandemic, in-person activities, which led to an increase in the demand for makeup, especially the face and lip subcategories.

The potential impact of inflation on makeup consumers is reflected in their willingness to spend serious money. Mintel research shows that more makeup customers reports a higher-than-average willingness to spend on makeup than a lower-than-average willingness to spend. This indicates that while inflation has influenced retail prices, makeup consumers are still keen to invest in products they value. 

Trends to watch out for: health and wellness

Joan Li, senior beauty and personal care analyst at Mintel highlights the evolving cosmetic landscape, where cost-conscious shopping behaviours, the popularity of dupes, and the influence of social media play a significant role. Li stresses the importance of catering to younger consumer groups who are more likely to be influenced by, and take inspiration from social media. 

An important trend is the increase in makeup usage among those who identify as men, particularly those aged 18-44. Male-identifying customers represent a primary growth area, with 43 per cent of men reporting that they use makeup more than they did a year ago. Some men are drawn to make-up for the emotional and mental health benefits, making note of relaxation and stress relief whilst applying makeup.

Male beauty concerns have focused specifically on complexion and blemishes, leading men to prefer cosmetics for the face over other subcategories. Makeup’s emotional and mental health appeal for men suggests that brands should consider balancing external benefits, such as an improved appearance, with internal benefits, like self-care. 

Younger consumers, especially women aged 18-34, are more focused on skin health and wellness. This group is paying more attention to the ingredients used in makeup products and wearing makeup less often due to skin health concerns. Their approach to makeup is minimalist, with makeup being used on an every-other-day or weekly basis, which is seen as a convenient and healthier approach for their skin. 

As the health and wellness industry expands to encompass emotional well-being and skin health, consumers are continuing to seek transparency from beauty brands about the ingredients they use. This growing awareness among consumers, challenges beauty brands to clearly communicate their roles within the industry. 

How to navigate a changing landscape

The beauty industry is witnessing a significant shift in consumer preferences, with a growing belief in the efficacy of affordable makeup products. The rise of dupes driven by social media influence and an evolving concept of value, has reshaped the beauty landscape. While the makeup market continues to experience growth, it faces challenges from inflation, trade-down behaviours, and the influence of categories such as ingestibles and skincare. The industry is also adapting to a changing consumer base, including a growing number of men embracing makeup and younger consumers prioritizing skin health. 

So, as the beauty industry evolves, makeup brands take note: your brand must remain flexible and responsive to changing consumer expectations, offering both premium and affordable options. 

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