U.S. beauty shopping declined in 2014 to the lowest level of shoppers since 2008, according to a report from NPD Group.
The Annual Beauty Consumer Economic Indicator saw a 4% drop in U.S. beauty purchasing, which it attributed to increased competition among beauty brands and retailers, and more competition between beauty and other products, services, and even experiences (such as vacations, entertainment and dining).
NPD reported that consumers still want to use beauty products to feel confident and sexy, but half of women would cut back on their beauty spend if money got tight. Similarly, nearly half of women indicate they usually shop for beauty products that are on sale, while the other half reports that price is not the most important factor when shopping for beauty products.
So, where are these women willing to cut beauty spending? According to NPD, those cuts are occurring in makeup and fragrance, which are often seen as “for special occasions.” However, if women were given an extra $100 of disposable income to spend on beauty, most would purchase makeup or fragrance products.