UK Health & Beauty Sector Report summary
October 2021
Period covered: Period covered: 29 August – 2 October 2021
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 sales stepped up by 0.00% YoY in September, against a soft 0.00% decline a year earlier.
The start of September saw some return to normality, which had a positive impact on beauty regimes. Children and teenagers returned to schools in the month, and adults were encouraged back into offices.
Greater mixing of people saw the need for cold and flu remedies ramp up. ONS’s retail sales data suggests health-related sales picked up, with sales of pharmaceutical, medical, cosmetic and toilet goods up 0.00% in September from a strong base on 0.00% a year earlier.
But a sense of normality didn’t last though. Fuel and food shortages, a jump in inflation, the prospect of rising national insurance, and Covid cases on the rise has seen confidence decline further. GfK’s consumer confidence index decreased by a substantial five points to -13 in September, and slipped by a further four points to -17 in October.
Greater competition online from multichannel players since the pandemic is piling on more pressure for online-only players.
The intense nature of online – including price sensitivity and competitiveness – means online players are less able to absorb rising supply costs.
Health & Beauty giant Procter & Gamble (P&G) has warned of price rises across grooming, oral and skin care products to counter rising commodity and freight costs. P&G has raised its expected commodity and freight costs by more than a fifth for its current fiscal year, as it now does not anticipate any easing in cost pressures over the year.
Retail Economics forecasts Health & Beauty sales to rebound over 2021, growing by 0.00% YoY to reach just under £0.00, returning close to 2019’s pre-pandemic levels.
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Supply chain pressure is pushing up PPI
Source: Source: ONS, Retail Economics analysis
