Consumer Edge Reports Ongoing Softness in Q3 2024 Direct-to-Consumer Beauty Product Sales in the U.S. and UK

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Oct 29, 2024, 08:00 ET

Year-Over-Year, D2C Beauty Product Sales Declined 10 Percent in the U.S. and 7 Percent in the UK

U.S. Omnichannel Beauty Retailers Experienced 2 Percent Sales Decline, While Those in the UK Saw 4 Percent Growth

Despite Decreasing Sales Industry-Wide, TikTok Fueled Growth in Fragrance Purchases, with Independent Brands Phlur, Oakcha and Alt Fragrance Capturing Consumer Interest

NEW YORK, Oct. 29, 2024 /PRNewswire/ -- Consumer Edge ("CE" or the "Company"), the leading provider of global consumer data-driven insights, today announced findings from its Q3 2024 Global Beauty Digest, which revealed a slowdown in direct-to-consumer ("DTC") beauty product sales across the U.S. and Europe, largely due to lingering inflation impacting consumer spending. However, a surge in spending among consumers aged 18 to 44 in the UK, as well as positive sales trends in the fragrance category, offer hope for the industry.

In the U.S., DTC beauty product sales declined 10 percent year-over-year, while beauty retailers experienced a more moderate 2 percent decline. Similarly, in the UK, DTC beauty product sales declined 7 percent year-over-year. Conversely, beauty retailers in the UK showed positive momentum, experiencing 4 percent sales growth, spurred by increased spending among consumers aged 18 to 44 and strong sales from retailers including Sephora, allbeauty and Notino.

Key trends and insights from the Q3 2024 Global Beauty Digest:

Fragrance dominates growth: In both the U.S. and UK, fragrance brands are leading the way for sales. Independent fragrance brand Phlur saw notable growth, likely due to the viral success of the brand on TikTok. Similarly, brands such as Oakcha and Alt Fragrance are expanding consumer access to affordable luxury fragrances, further driving sales.
Young UK consumers drive the beauty market: While global beauty sales remain weak, younger consumers in the UK offer a bright spot. Both single-brand beauty merchants and large beauty retailers experienced increased spending among this demographic, signaling an opportunity for brands that cater to younger, trend-driven audiences.
Clean, natural beauty brands thrive: Across the U.S. and UK, clean beauty and body care brands continue to gain traction. U.S. brands, including Primally Pure, Salt & Stone, Rhode and Jones Road Beauty, saw steady growth as consumers remain invested in natural, wellness products.
UK beauty retailers see solid growth: Beauty-specific retailers such as Sephora, allbeauty and Notino experienced robust growth, capitalizing on the shift away from DTC channels. Meanwhile, international cosmetic brands including Huda Beauty, KIKO and Charlotte Tilbury have succeeded in capturing DTC audiences, finding a balance between e-commerce and omnichannel beauty retailers.

"While global beauty spending remains challenged, innovation and strong consumer engagement –especially in fragrances and with younger shoppers – are fueling pockets of growth," said Michael Gunther, Vice President and Head of Insights at Consumer Edge. "Brands that successfully align with shifting consumer preferences and deliver value without sacrificing quality are succeeding in this changing market."

To read the full Q3 2024 Global Beauty Digest, please click here.

About Consumer Edge
Consumer Edge ("CE") provides data-driven insights focused on the global consumer. Founded in 2009 by CEO Bill Pecoriello, CE is a data and insights as a service (IaaS) company delivering unparalleled views into global consumer spending behavior coupled with deep industry knowledge and analytical expertise. CE solutions provide key stakeholders across the corporate and investment landscapes with best-in-class tools to enable enhanced strategic decision-making. CE's unique capabilities allow for actionable insights driven by near-real-time market intelligence and benchmarking at the product, brand, sub-industry and industry levels. For more information, visit consumeredge.com.

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SOURCE Consumer Edge