25th May 2026
That pattern actually shows up quite consistently in retail downturns, and it comes down to a mix of psychology, affordability, and product type.
Health and beauty products tend to behave more like “everyday essentials with emotional value” than discretionary luxury items.
Even when households are cutting back on big-ticket spending (clothes, electronics, dining out), they often keep buying skincare, toiletries, and basic cosmetics because they’re relatively low-cost per item but feel important for daily routine, confidence, and well-being.
A few key reasons are usually behind the resilience:
“Affordable indulgence” effect
When money is tight, people often still allow themselves small treats. A £10–£30 skincare item or lipstick is much easier to justify than a £200 shopping trip or restaurant meal. This is sometimes called the lipstick effect—not just lipstick, but small luxury-consumer goods in general.
They are semi-essential goods
Shampoo, toothpaste, deodorant, moisturiser—these don’t get cut easily. Even “beauty” items often shift from luxury to “maintenance spending” rather than being eliminated.
Trade-down behaviour instead of stopping
Consumers often don’t stop buying—they switch brands or formats:
salon products → high-street brands
premium skincare → mid-range or own-label
So sales value can hold up even if consumers are more price-sensitive.
Strong promotion and discounting in retail
Supermarkets and pharmacies (like Boots-style retailers in the UK) frequently discount health & beauty lines. That keeps volumes stable even when overall spending is weaker elsewhere.
Habit and routine resilience
These products are tied to daily routines. People are reluctant to disrupt skincare or hygiene routines even during financial pressure.
Growth in “self-care” and wellness culture
Social media has reinforced skincare, grooming, and wellness routines (e.g., multi-step skincare, SPF use, haircare regimes). That structural trend can offset short-term economic weakness.
Demographics matter
Ageing populations in many countries increase baseline demand for health-related and personal care products, especially dermatological and “anti-ageing” categories.
Online retail and subscription effects
Auto-replenishment (repeat purchases, subscriptions, online bundles) smooths demand even when other retail categories fluctuate.
So in short: people do cut back, but they cut back hardest on big discretionary purchases first. Health and beauty sits in that “small but emotionally important” middle zone, which makes it unusually resilient even in weaker consumer environments.
Toiletries (strongest and most resilient)
This category usually holds up the best: shampoo, soap, toothpaste, deodorant, razors, household personal care.
Why it performs well:
Non-discretionary essentials: people cannot really stop buying them.
Trading down instead of stopping: consumers switch from premium brands to supermarket own-labels rather than reducing usage.
Private label growth: retailers like supermarkets and pharmacy chains benefit because own-brand products gain share in downturns.
Stable usage rates: demand is “biological”—it doesn’t fall much even in recessions.
Result:
Sales volumes stay fairly steady, but brand mix shifts downward (premium → value).
Skincare (very strong, often growing)
Skincare has been one of the most resilient and even growth-leading categories in recent years.
Why it performs well:
“Self-care essential” perception: moisturisers, SPF, cleansers are seen as health-related, not luxury.
Routine-driven purchasing: people stick to skincare routines even when cutting other spending.
Trade-up and trade-down coexist:
Some consumers trade down to cheaper brands
Others trade up to “treat themselves at home” instead of going out
Social media influence: TikTok/Instagram skincare culture keeps demand structurally high
Key drivers: SPF, dermocosmetics, anti-ageing, and “skin barrier” products.
Result:
One of the fastest-growing beauty segments overall, even in weaker economies.
Fragrance (mixed but surprisingly resilient at the premium end)
Fragrance behaves differently from toiletries and skincare.
Why it holds up:
“Small luxury” effect (lipstick effect): perfume is an emotional purchase rather than a necessity.
Gift-driven demand: strong seasonal spikes (Christmas, Mother’s Day).
Premiumisation trend: high-end fragrances often grow even when mass-market stagnates.
Why it can weaken:
Mid-market perfumes get squeezed when budgets tighten.
Consumers may delay repurchase because fragrance lasts longer than other products.
Result:
Luxury fragrances remain strong
Mass-market is more volatile
Companies like L'Oréal and Estée Lauder Companies benefit heavily from premium fragrance resilience.
Supplements & vitamins (volatile but structurally growing)
This is the most “mixed” category.
Why it can grow:
Health consciousness post-pandemic
Ageing population and wellness trends
“Preventative health” mindset (immune support, gut health, sleep aids)
Why it is volatile:
Seen as non-essential discretionary spending
Consumers cut back during financial pressure
Highly sensitive to marketing trends (e.g., collagen, magnesium waves)
Result:
Long-term growth trend
Short-term demand can dip in downturns
Retailers like Boots often see supplements as higher-margin but more cyclical than toiletries/skincare.
Overall hierarchy in weak consumer markets
From most resilient to most volatile:
Toiletries (strongest stability)
Skincare (growth even in downturns)
Fragrance (polarised: luxury strong, mid-tier weak)
Supplements (trend-driven and cyclical)
The big picture
What you’re really seeing is a split between:
“Must-use daily hygiene” (toiletries)
“Self-care identity spending” (skincare)
“Affordable luxury/emotion” (fragrance)
“Optional wellness optimisation” (supplements)
That’s why the sector as a whole can look strong even when wider retail is slowing—the mix is heavily weighted toward either essentials or emotionally anchored spending.