Brexit vote and pound’s plunge boost UK prestige beauty sales says NPD

By

Sandra Halliday

Published
Nov 28, 2016

The UK market for prestige beauty products reported impressive growth post-Brexit vote, according to the NPD Group.

Sales of prestige beauty products grew twice as fast, at 6%, in the three months following the UK referendum to leave the EU (July to September 2016) compared with just 3% growth from January to June 2016.

The greatest growth post-vote was for products at the highest price levels, specifically in the sale of niche fragrances (costing £125+) and super premium skincare (£200+), both of which reported a double-digit upsurge.  

Prestige beauty plays a vital role in the cosmetics market in the UK, and sales of such products there reached a massive £2.446bn in 2015.

Teresa Fisher, senior account manager, NPD UK Beauty, said the post-Brexit vote sales rise is impressive, especially given the economic uncertainty in the market after the surprise vote for Britain to leave the EU.

She feels that much of the boost came from the fact that shopping in the UK became less expensive for overseas tourists due to the drop in the value of the pound. That was supported by the fact that the largest growth in the market has been in London and online.

A number of luxury fashion retailers have also said that stores in London have been boosted since the pound’s near-20% plunge with UK tourism officials also pointing to a sharp rise in overseas visits in late summer and early autumn.