The European makeup market took a turn for the worse in 2020. Faced with widespread lockdown restrictions across the region and retail shops shuttered from March until June, consumers had limited opportunity to buy makeup in person. Although a move to online purchasing helped prevent greater decline, the consensus is that consumers have been purchasing less makeup than pre-pandemic. And as the European economies began opening, it is clear that brands needed to adapt to the new normality and reflect a shift in consumer purchasing behavior, as well as tap into opportunities for entrepreneurial innovation.

Euromonitor International’s assessment of European makeup sales for 2020 does not make for easy reading: total yearly sales are expected to decline by 8.4% in Western Europe, to about $12.3 billion; it’s worse in Eastern Europe, where a sharp, 15.0% drop is expected to about $3 billion.

As Europe went into lockdown, women had fewer reasons to wear makeup on a daily basis. Without the imperative to go out to work and socialize with friends and colleagues, many lost the habit of applying color to face the world. According to Mintel’s latest global consumer statistics, 31% of Irish women are wearing less makeup and/or coverage products since the COVID-19 outbreak, compared with 28% of Spanish, 27% of British and 24% of Polish consumers.

Despite such uncertain times, 40% of European consumers are purchasing the same amount of makeup as they were pre-COVID-19, reports GlobalData in its COVID-19 2020 Recovery Survey Tracker, published in September. However, 17% of Europeans are purchasing less makeup and 5% have stopped purchasing it altogether. The decline in makeup purchasing is most marked among UK consumers (-24%), compared to a 14% drop in Sweden and a 13% decline in Germany. Furthermore, GlobalData reports a notable switch toward products in the mid-range, which is believed will continue for the foreseeable future. Again, it is UK consumers who are most likely to turn to mid-priced brands, such as Boots No7 and L’Oreal Paris.

Above the Mask
Naturally, the trend for wearing less makeup has impacted makeup purchasing, with lipsticks proving a notable casualty; according to NPD Group, UK sales of prestige lip products declined pre- and post-lockdown.

“As consumers are required to wear face coverings in shops, on public transport and other public spaces, the lip segment has declined in share…as the lip area is no longer visible when wearing a mask,” affirms Emma Fishwick, account manager, NPD UK Beauty.

However, there have been some bright spots. NPD Group noted that in the UK, eye makeup increased its share of the prestige makeup category by 3% during and after lockdown, while sales of online prestige nail products recorded double-digit growth during the UK’s first weeks of lockdown. The focus on eyes, the area of the face most visible above a mask, has benefited sales of mascara, eyeshadow and brow products. New launches include Pat McGrath’s Dark Star mascara launch, a gel-hybrid formula adding texture and definition that tapped into the trend for volumized lashes. And Gucci chose March 2020 to debut its first-ever mascara, L’Obscur, which promises 12-hour hold.

Meanwhile, the closure of nail salons meant that consumers had to look after their nails at home, with UK prestige sales of colored polish growing 18% during the early weeks of lockdown.

“The increase in sales of nail products online, particularly intense shades, indicates that nail care could be the “Covid-19 Lipstick Effect,” muses Fishwick.

Chanel, for example, has channeled darker shades for its fall/winter 2020 collection, including Vamp, a burgundy red with hints of silver.

Try-on Technology
Makeup is the most tactile and visual of all beauty categories and physical stores traditionally dominate sales. The ability to pick up and touch products, and determine texture and color can never be replicated online, but brands such as Beauty Pie, Kylie Cosmetics and Il Makiage are leading the way in proving that a D2C makeup model can be successful. However, it remains to be seen if they can continue with a single-retail strategy or expand their reach by partnering with physical stores.

The speed at which try-on technology is developing means consumers can buy makeup online with greater confidence.

“A number of brands were already using virtual testing methods to help women ‘try’ products without physically touching them, even before the pandemic,” states Roshida Khanom, head of beauty and personal care, Mintel, “but prior to the outbreak usage of these tools was low.”

Everything changed when physical trial became impossible and women began to turn to digital alternatives, such as Charlotte Tilbury’s Magic Mirror, Benefit’s Brow and MAC’s virtual try-on tools and Icon.AI’s Smart Makeup Mirror, a multifunctional makeup mirror, powered by voice assistant Alexa. Meanwhile, AI and AR beauty tech firm Perfect Corp’s virtual app YouCam Makeup, has experienced a boost in demand from beauty brands since the pandemic.

Lia Neophytou, analyst, GlobalData, argues that physical testers at point of sale will never be completely replaced.

“Virtual try-on technology is not yet mainstream and consumers may hesitate before trusting that virtual demonstrations of products accurately match their physical counterparts,” she says, pointing out that the challenge facing retailers will be to provide consumers with the ability to test products in-store both safely and hygienically. She further highlights an initiative by Boots UK which introduced touch-free consultations as well as offering disposable applicators dispensed by a beauty consultant.

Virtual testers offer a more hygienic and practical approach at point of sale for consumers who remain reluctant to shop in physical stores. Mintel’s data from June 2020 shows that 59% of women are more concerned about how hygienic it is to test beauty products in-store since the pandemic. A further 49% are worried about maintaining social distancing when purchasing beauty products in-store.

“With makeup purchase driven by trial and often on impulse, brands and retailers will need to innovate alternative trial methods to continue to drive experimentation,” concludes Khanom.

As a result, much work must be done by both brands and retailers in order to persuade consumers back into store. Makeup has always been a resilient category and there’s every reason to expect that it will bounce back.

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Imogen Matthews
Headington, Oxford UK
+44 1865 764918
www.imogenmatthews.co.uk

Imogen Matthews is a respected consultant, journalist and researcher who commentates on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles, has served on the Board of Cosmetic Executive Women (CEW UK) and won the prestigious Cosmetic Executive (UK) Achiever Award. Founded by Imogen in 1993, The Premium Market Report remains the only in-depth report to examine trends in the premium cosmetics, skincare and fragrance industry.