Report Summary

Period covered: 01 March - 04 April 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Health & Beauty - Retail Economics Sales Index

Health and beauty sales rose by xx% year-on-year, outperforming all other non-food categories and comfortably ahead of the xx% increase recorded a year earlier.

The category continues to demonstrate strong resilience, maintaining momentum despite broader discretionary spend softening.

While some moderation emerged later in March, the category held its position as the most consistent non-food performer.

Key trading themes and drivers

Demand remained robust across much of the month, supported by a combination of habitual purchasing, wellness trends and the continued appeal of accessible indulgences.

The first half of March benefited from seasonal drivers, including Mother’s Day gifting and increased focus on personal care as weather conditions improved. These factors supported both in-store and online engagement, particularly across skincare, fragrance and cosmetics.

As the month progressed, the broader shift in consumer sentiment became more visible. The escalation of conflict in the Middle East introduced greater caution across discretionary categories.

However, health and beauty proved more resilient than most, with consumers continuing to prioritise smaller, feel-good purchases even as they reduced spend elsewhere.

This behaviour aligns with the long-observed ‘lipstick effect’, where households maintain or increase spend on affordable luxuries during periods of uncertainty. 

Macroeconomic backdrop

The macroeconomic backdrop became more challenging as March progressed, but its impact on health and beauty was less pronounced than in other discretionary sectors.

Inflation rose to xx% year-on-year, driven by higher fuel, transport and food costs. These pressures continue to weigh on household budgets, increasing sensitivity to pricing across retail.

The escalation of conflict in the Middle East has heightened uncertainty, particularly through its impact on energy markets. Rising oil and gas prices are expected to feed through into broader inflation, sustaining pressure on real incomes over the coming months.

Monetary policy expectations have shifted, with interest rates held at xx% and expectations for near-term cuts pushed out. Higher borrowing costs are beginning to weigh on consumer sentiment, particularly for larger purchases.

Consumer confidence declined during the month, with households becoming more cautious about the wider economic outlook. This has led to a rise in precautionary saving and a more defensive approach to spending.

The labour market continues to ease gradually, with slower wage growth limiting real income gains. However, the relatively lower price point and habitual nature of health and beauty purchases provide insulation from these pressures.

Outlook

Health and beauty remains one of the most resilient areas of retail heading into the second quarter.

While some moderation is possible as consumer caution increases, the category is well positioned to sustain growth. Demand is supported by repeat purchasing, strong brand engagement and the continued appeal of affordable indulgences.

In a market where discretionary spending is under pressure, health and beauty is set to remain a relative outperformer, supported by its unique position within consumer priorities.

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Confidence fell four points to -25 in April