As consumers re-emerge to face the world, with lots of celebrations to catch up on and offices to  work in,  sales of beauty products are expected to increase.

Like many other categories, beauty is benefitting from the re-opening of businesses of every stripe and the resumption of in-person events. Sales also received a boost when the Centers for Disease Control announced in May that fully vaccinated people could stop wearing masks in most places – masks that previously covered up half of the face.

Lipstick, For Example
Categories that suffered as meetings turned virtual last year are expected to benefit the most. U.S.  sales of lipstick declined sharply during the early weeks of the pandemic, but this year, for example,  increased 80% in the month ended April 18 to $34.2 million, according to the research firm IRI Worldwide.

In contrast, U.S. sales of beauty products declined 19% to $16.1 billion in 2020 with a 34% decline in sales at physical stores partially offset by a 46% increase in ecommerce, says Larissa Jensen, VP and Industry Advice for Beauty at NPD  U.S. online sales of beauty products increased 33% year on year  in the first quarter ended in March  while those in brick and mortar retail also rose 3%, says Larissa Jensen, VP and Industry Advisor for Beauty at NPD.

Nearly 6% Increase This Year
Overall, global sales of beauty products are expected to increase 5.8% this year to $511 billion, before posting 4.75% annual growth through 2027 to reach $784.6 billion, according to consultant Common Threads . The U.S. (24%) and Asia Pacific (46%) accounted for 70% of beauty product sales in 2020, followed by Western Europe (18%), Latin America (8%) and Eastern Europe (4%).

“Makeup is very highly tied, and beauty is as well, to usage occasions,” says Jensen. “So without going to work, going out to eat, going to events, there were no usage occasions.”

Not surprisingly, cosmetics for “usage occasions” are increasingly being purchased online, which is expected to account for more than 37% of sales this year, says Tara James, VP and Group Director at Nielsen.  Ecommerce sales of beauty products are forecast to increase 5.3% this year, a slightly lower  growth rate than last year’s 5.6% increase, while brick and mortar will have a 12% decline this year on top of the same decrease in 2020.

Increases will be tempered by consumers trained by the pandemic to consolidate shopping trips and seek value. Between a third and half of shoppers polled by the research firm WSL Strategic Retail planned  to cut how much they spend on beauty products by switching to less expensive brands or retailers, or simply by buying less. The cheaper prices will likely be found on the Internet, but some purchases also will shift to mass retailers, which also carry less expensive items, says James.

Recent licensing activity in beauty and adjacent categories includes:

• Revolution Beauty launched 12 SKUs with MGA Entertainment’s Bratz brand at beauty retailer Ulta ranging from eye liner and lip crayon ($10) to a “limitless” makeup palette ($28)
• Beauty influencer and TikTok star Mikayla Nogueira, who rose to fame during the pandemic last year and has since amassed 5.7 million followers, introduced a cosmetics collection with licensee Glamlite on June 13 that quickly sold out. The entire collection – 30-pan palette, highlights, lip gloss and faux lashes — retails for $89.
• A summer staple of outdoor barbeques – beer – is being mixed with sunscreen. AB Inbev licensed its Stella Artois brand to Soleil Toujours for sunscreen created as an homage to the Stella Artois Solstice Lager.
• Newell Brands’ Chi hair care label launched a limited edition co-branded Barbie line in April consisting of curling and flat irons, volume booster and conditioner.
• Floral Street will launch the first Vincent van Gogh fragrance and scented home products in August with packaging that features the artist’s works.