The average sales prices of prestige skincare in the UK increased 7% in the period Oct-Dec 21 compared to the same period in 2020, according to The NPD Group. Many sectors of the beauty and personal care markets have been affected by higher retail prices and Prestige skincare has reported a marked increase in average sales price which is due to international and local issues.
Emma Fishwick, Account Manager, NPD UK Beauty explains: “The price rises we have seen in the prestige skincare market are due to a number of factors. The cost of shipping, packaging and raw materials are on the rise and thereby brands have little choice but to increase the price of their products to ensure that their business is sustainable.”
The average sales price of prestige skincare in the period Oct-Dec 21 rose from £34.80 to £37.38. In the period Oct-Dec 21, a decline in demand (-4%) was behind a -10% value sales decline in the overall market.
Prestige Skincare Sub Segments recorded the most significant price increases include Face Masks (+11%), Body Creams (+11%) and Eye Treatments (+8%) whereas core skincare products such as Face Creams record a more modest average sale price growth, increasing 3% in the period Oct-Dec 21, compared to the same period in 2020.
Mid-Range Brands are typically priced around 60% less expensive than Prestige Brands which is having an effect on the balance of the market as consumer shift their spending habits. Mid-Range Brands have increased their share of the skincare market from 17% in Q4 2018 to 25% share in Q4 2021.
Emma Fishwick, account manager, NPD UK Beauty, explains: “Whilst consumers feel the squeeze, as the cost-of-living increases, there is an opportunity for prestige beauty brands to sharpen their marketing communications to highlight the multiple benefits of products. For example, make-up with skincare benefits, skincare with SPF and men’s grooming products that soothe razor rash and protect the skin at the same time. Prestige beauty is renowned for its cutting-edge scientific research and this is another way that brands can truly differentiate their offering from other players in the market.”