The recent dip in European makeup sales may have been a blip as the category has recorded stronger growth in 2013, according to Datamonitor. However, performances have varied by country. The UK leads the way as it has done for some years, while Italy and Spain have struggled to post positive sales growth. Datamonitor’s Consumer Global Survey 2014 confirms that consumers still remain price sensitive with only one quarter of Europeans agreeing that their disposable income is increasing. It is clear that many European consumers remain strapped for cash during this prolonged recession and even the temptation of a relatively cheap makeup item has not been enough to maintain the so-called Lipstick Effect.

Makeup sales in Europe increased 2.9% to $14.6 billion in 2013, according to Datamonitor. The biggest gains came from the UK, up 4.8%, closely followed by Russia, up 4.5%, while Germany also performed above the European average with a 3.8% increase in 2013. Russia is now the fourth largest European makeup market; furthermore, it is the lipstick leader in the region, with sales totaling $549 million. 

Overall, face makeup commands the largest share of makeup in Europe at $4.9 billion, although nail makeup, the smallest category at $1.7 billion, is showing the strongest growth at 5.0% year-on-year. This illustrates the on-going love affair European women have with nail color which has become the ultimate fashion accessory capable of transforming a woman’s look at a very low price.

According to Kantar Worldpanel, two out of three European women use makeup, although usage of nail polish is much lower at just one in 10 women. Nearly half of all women put on makeup first thing in the morning when getting ready for work or school.
French women are most likely to “put on their face” before leaving in the morning (50.4%), while UK women are least likely to do so (41%). This is probably due to the widespread practice of applying makeup while commuting to work on the bus or train, with 21% of British women saying they apply makeup while on the go. French and Spanish women wouldn’t dream of doing this; just 0.4% and 1.9% respectively put on their makeup when on the move.

The Rise of Designer Makeup
Designer makeup is a relatively new category; successful brands include Burberry, Tom Ford, Giorgio Armani and Dolce & Gabbana. Classic fashion brands such as Chanel, Christian Dior, Givenchy and Yves Saint Laurent have also benefited from the trend toward luxury fashion makeup. According to NPD Group Inc., the launch of Gucci’s makeup collection has raised the stakes in the UK prestige beauty market, with sales of designer makeup reaching nearly $80 million (at current exchange rates) for the period January to June 2014. Although a small category at just 7% of total prestige makeup, its importance to the beauty sector should not be underestimated.

“Designer makeup sets the standard for color cosmetics around the world,” explained June Jenson, director UK beauty for The NPD Group. “It has a strong association with luxury brands and A-list celebrities. The launch of a high-end cosmetic line by Gucci represents a significant development in the designer makeup market.”

The 200-piece Gucci makeup line, created by in-house creative director Frida Giannini, comes in elegant black and gold packaging embossed with the Guccissima pattern and stamped with the iconic interlocking letters in a design statement that says it’s as much about the packaging as the makeup colors and formulations.

Another newcomer is Christian Louboutin, whose high-priced nail polish reflects the brand’s shoe design with its stiletto-style sculpted cap and bright red shades reflecting the trademark soles of the shoes. At $50 a pop, it is raising eyebrows in more ways than one.

Crossovers
Technology found in other categories, such as skin care, is crossing over into makeup.

“As consumers are searching for more effective non-invasive solutions with which to improve their appearance, they are now searching for cosmetics which go beyond concealing imperfections and creating short term aesthetic solutions to those which have a long-term impact and contain similar active ingredients to those seen in skin care,” commented Mills.

Crossover examples include DreamWeave & Co’s Mix Up the Voltage Collagen Lip Plumper which uses a non-injectable peptide combined with nano-technology to fill and volumize the lips. Another example is Eveline Cosmetics SOS Lash Booster Eyelash Serum, launched in Poland, that reportedly combines the properties of a regenerative serum, hair growth activator and mascara base to double the volume of lashes, extend, strengthen and encourage growth, while preventing eyelash loss.

New to the UK makeup market in October is Zelens Active Colour by consultant plastic and reconstructive surgeon and skin aging expert, Dr. Marko Lens, who wanted to create a range of beneficial makeup products that not only provide color but effectively trigger cellular processes necessary for skin regeneration and repair. Each product contains a complex of active ingredients, such as green shiso leaf to shield against environmental damage and soothe sensitive skin, and a sesame-derived protein to provide an instant tightening effect and a noticeable reduction in the appearance of wrinkles. Lip Enhancer is an innovative lip treatment that reacts with the pH of the lips and visibly enhances their natural color, volume and definition. 

Meanwhile, the trend for at-home salon products has arrived in the makeup category with the emergence of devices offering a high potential innovation opportunity. An example of this is the Airbase High Definition Airbrush Make-Up System launched in the UK, which has traditionally been used by beauty professionals and is now available to consumers in an accessible and easy-to-use format. The kit consists of a high definition airbrush and compressor to be used with a choice of seven foundations, two blushers or a bronzing product.

The European makeup market is alive with innovative concepts and technologies, designed to appeal to the aspirational consumer. Now all that is needed is more disposable income to ensure that category sales keep up with product launches.

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Imogen Matthews
Headington, Oxford UK
Tel: +44 1865 764918

Imogen Matthews is a respected consultant, journalist and researcher focusing on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles. Every year in April, she publishes The Premium Market Report, focusing on trends in the UK premium beauty markets.
www.thepremiummarketreport.com