Report Summary

Period covered: 30 November - 03 January 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 in December, marking the strongest performance among non-food categories.

• This followed a particularly strong November, bringing the two month growth rate to xx%.

• Although this was slightly below the xx% rise recorded over the same period in 2024, the category maintained a consistent position of strength across the peak trading season.

Key trading themes and drivers

• Performance was supported by gifting, seasonal self care spending and consistent demand for personal care staples.

• Fragrance, cosmetics and bath gifting lines remained central to December trading, with a solid uptake in both value and mid tier ranges.

• Own brand gift sets and exclusive seasonal promotions proved popular, particularly in the week leading up to Christmas.

• Skincare and wellness continued to see engagement, aided by colder weather and a consumer focus on self care.

• While price sensitivity remained a factor, the category benefited from relatively low inflation compared with other discretionary areas.

• Retailers were able to drive volume through selective offers rather than broad based discounting.

Macroeconomic backdrop

• The economic environment remained tight but stable through December.

• Consumer sentiment was little changed on the year, with the GfK index at xx as households continued to navigate elevated costs.

• Inflation ticked higher to xx%, driven by seasonal factors and a rise in tobacco and air travel prices.

• The Bank of England cut the base rate by xx% to xx% in December, its fourth reduction of the year, offering modest relief to borrowers.

• Household finances remained divided. Some consumers leaned heavily on unsecured credit to finance festive spending. Bank of England data showed credit card balances rose over xx% year-on-year, the fastest pace since January 2024.

• At the same time, others added to savings, contributing to uneven patterns of discretionary spending.

Closing outlook

• Health and beauty retailers can enter the new year with optimism.

• While December marked a seasonal high point, early 2026 trading is likely to see a reset, with gifting demand falling away and shoppers focusing more on core health, wellness and personal care needs.

• Promotional activity will remain central to sustaining engagement, particularly as households rebalance after Christmas spending.

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Confidence rises in December