UK Health, Beauty & Cosmetics Sector Report

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UK Health & Beauty Sector Report summary

January 2026

Period covered: 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