The “lipstick index” describes how, during times of financial crisis, consumers tend to spend more money on small luxuries – like high-end lipsticks – to bring them comfort. While investigating this effect, price comparison site Idealo noted that demand for lipsticks has risen by 1,006% since the cost of living crisis in the UK.
 
In light of this, they set out to discover which small luxuries Brits are spending the most money on during this difficult time, using ONS data to dig into our spending habits and predict future patterns.

Brits Spend $8.3 Billion per Year on Cosmetics

The UK currently spends an average of £6.4 billion ($8.3 billion) per year on cosmetics. This is actually 7% less than in 2020 when spending hit £6.9 billion ($8.9 billion) – perhaps due to the pandemic leading people to find joy in small indulgences while stuck at home.
 
Londoners are currently spending the most on beauty products ($1,269 million per year), followed by households in the South East ($1,266.9 million) and the West Midlands ($843.1 million). Meanwhile, Northern Ireland spends the least on cosmetics at just $221.77 million per year on average ($1,047.2 million less than in London).
 
The top 10 UK regions spending the most on cosmetics:

 
Analyzing internal data for product demand, Idealo has also revealed that interest for lipsticks has risen by 1,006% since September 2021. Other beauty products have also seen an increase in interest from consumers with demand for lip gloss increasing by 1,154%, mascara by 1,229%, and lip liner by 1,667%.

The West Midlands Are Set to Spend an Extra £260 Million on Cosmetics by 2030

Based on current spending patterns, the UK is predicted to spend 11% ($924.8 million) less on cosmetics by 2030. However, some regions of the country are actually set to increase their spending on beauty products, with the West Midlands predicted to spend an additional $335.4 million on cosmetics by 2030, an increase of 40%.
 
Those in the South East, Yorkshire, South West and East of the country are also expected to increase their spending.
 
Read the full report from Idealo.

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