The 2020 Lipstick Effect

Glossier’s Generation G lipsticks

The lipstick effect seems to be making its way back into society as consumers are starting to spend more on small luxury items – like lipstick - even with the looming recession and economic downturn. Because of this, online sales for beauty brands are rising. People seem to have more time on their hands to splurge on cosmetics. Even during the pandemic, there is an upward trend for beauty sales.

According to the NPD group, the prestige beauty category sales increased by 47% on the week of March 28. As consumers are done splurging on necessities, they seem to be looking for products that will make them “feel sane” while in-home quarantine. Experts say that consumers are using cosmetics to keep their daily routines in check and help lift their moods in a time of social distancing. Though beauty sales dropped at the beginning of March, they are now 13.5% higher.

High growth categories include the hair, eye, and skincare categories. As people can no longer go out to have their hair treated, consumers are spending on home hair color and treatments. The demand for eye products such as eyelashes and eyeliners is also on the rise as consumers are concerned with looking alive and awake during Zoom calls. They are also turning their attention to skincare products now that they do not need to wear makeup for days or nights out. Additionally, the fashion trend of wearing masks, scarves, and bandanas for protection seems to be fueling the trend of focus on the face.

Though these product categories have been driving beauty e-commerce and the 2020 lipstick effect, it is still questionable whether brands will be able to make up for the lost brick-and-mortar sales. Because of this buyers now need to update their trend forecasts and look into buying products that are high in demand to bring in profit.