Economic shifts changing how US shoppers spend on beauty and hair care
Using data from its new American Lifestyles: Balance or Bust US 2016 report, the company has observed some noteworthy changes in how consumers buy personal care products as of late.
The full report tracks spending across a spectrum of consumer markets: tourism, transportation, dining, entertainment, tech and communications, clothing, finance, and more.
Mintel reports that shoppers are striving to balance out their spending between what’s practical and what’s a luxury worth splurging on. And, this impacts spending across sectors. “Some Americans are still struggling to find a balanced approach to spending,” affirms Dana Macke, senior lifestyles and leisure analyst at Mintel, in a press release about the data.
“In an attempt to spend prudently while still enjoying whatever extra they have, consumers are trading down in categories like household care and seeking out lower priced options for basic beauty and personal care needs, while allowing themselves modest luxuries like a nice dinner out,” she says.
The company notes that beauty basics like shaving products and sun care are likely places where consumers will spend less. But that shoppers are inclined to spend more on multifunction products or those that offer other added advantages. “A notable 17% of consumers report spending more in 2015, reflecting a willingness to spend on products with added benefits,” according to the press release.
Mintel’s data shows that 67% of consumers spent about the same on beauty and personal care in 2015 as in 2014, and that, from year to year, industry sales grew by 2.9% amounting to $124.5bn in sales last year.
Healthy and natural hair
The market researcher says that the “natural haircare trend reveals a bright spot for [the] beauty and personal care market.”
Both the shift toward products made without so-called chemicals of concern and the trend for more natural beauty and natural hair looks seem to be having a positive effect on industry sales.
A fair number of consumers are trading up and spending more on products that suit their expectations. “This is especially true of grooming staples like haircare as natural hairstyles are trending, driving consumers to seek healthy-looking hair and boosting sales of conditioners as well as products touting smoothing and moisturizing claims,” according to Mintel.