According to McKinsey Consulting, the beauty industry has seen about a 50% drop in peak sales year over year and especially low numbers of lipstick purchases. The firm predicts global revenue will fall by up to 30% in 2020.
Consumers are still purchasing items like skincare products, but for a different purpose than usual.
According to Estee Lauder’s fourth-quarter earnings, skincare sales were up 25% while makeup sales was down 61%. Retail Market Watcher Erin Sykes told Fox Business that this purchasing pattern could stick around for a while.
“Women have become less concerned about the makeup and more concerned about beauty as a whole, radiating from the inside out, wellness, etc.,” she said. “So as we move forward, I think that that is going to continue and that the makeup sales are going to be soft for the foreseeable future.”
Other self-care products like bath and body products are continuing to sell, as well as do-it-yourself products like nail kits.