Report Summary

Period covered 05 April – 02 May 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 remained the strongest non-food category in April, with sales rising xx% year-on-year despite softer discretionary spending.

Easter timing distorted the comparison, with some seasonal spending shifting into March. On a combined March-April basis, sales rose xx%, only slightly below the xx% increase recorded a year earlier.

Demand for personal care, wellness and affordable indulgences continued to support performance despite wider economic uncertainty.

Key trading themes and drivers

Easter timing distorted April’s headline performance, particularly where gifting and seasonal purchases shifted into March. However, the combined March-April figures indicate underlying demand remained strong, with the category continuing to outperform wider non-food retail.

The category also continues to benefit from the lipstick effect. While households have become more cautious around larger purchases, cosmetics, skincare, fragrances and affordable wellbeing products have held up more strongly than many discretionary categories.

Wellness remains an important driver of demand across skincare, supplements, beauty treatments and pharmacy-led products. This has broadened the category beyond traditional cosmetics and reduced exposure to more discretionary spending patterns.

Consumer behaviour is becoming more selective as inflation concerns returned in April. Value sensitivity has increased, although consumers continue to spend on premium skincare and wellness products.

Promotions and value ranges continue to support accessibility, while digital engagement, subscriptions and loyalty programmes remain important in sustaining repeat spend.

Macroeconomic backdrop

The wider economic backdrop became more challenging during April, although health and beauty remains less exposed than many discretionary retail categories.

Rising fuel and energy prices linked to conflict in the Middle East brought inflation concerns back into focus, increasing caution across household spending. Categories linked to affordable treats and personal wellbeing have historically held up more steadily during periods of uncertainty, partly because purchases are lower cost and more habitual.

Expectations for monetary policy also shifted. Markets moved further away from near term interest rate cuts as policymakers responded cautiously to renewed inflation risks.

Consumer confidence around major purchases remained subdued, though health and beauty continues to benefit from repeat purchasing behaviour and frequent spending patterns. Beauty, personal care and wellness products sit closer to habitual spending than discretionary one-off purchases, reducing exposure to sudden shifts in sentiment.

The labour market continues to provide some support. Employment remains relatively stable and wage growth, while easing, continues to support everyday spending. This should help sustain routine health and beauty purchases, even as households become more selective elsewhere.

Spending growth may ease from recent highs, although the category continues to benefit from structural demand drivers that remain supportive relative to wider non-food retail.

Outlook

April highlighted health and beauty’s position as one of the stronger performing retail categories. The easing in growth should be viewed in the context of a strong prior-year comparison and Easter timing effects, with the combined March-April figures showing demand remained firm.

Near-term conditions remain supportive. Wellness trends, repeat purchasing and demand for affordable indulgences continue to support spending, particularly as households look for lower-cost ways to maintain quality of life during a period of greater economic uncertainty.

Consumer caution may increase trading down and promotion sensitivity in parts of the market, predominantly within premium cosmetics and more discretionary beauty spending. However, demand across skincare, pharmacy, personal care and wellness categories should remain firmer than in many discretionary retail sectors.

Inflation pressures linked to energy and fuel costs remain a risk to wider consumer demand, although health and beauty is less exposed than most non-food categories if household budgets tighten further. Consumers may delay larger purchases elsewhere, while routine purchases and lower-ticket indulgences are typically more resilient.

We expect health and beauty to continue to outperform wider non-food retail over the summer, supported by repeat purchasing patterns and sustained demand linked to wellbeing and self-care.

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Consumer confidence edges up in May