How Experts Say Brexit is Boosting the Beauty Industry

Following the Brexit vote, sales of beauty and personal care are continuing to rise when compared to previous years. This is attributed to "The Lipstick Effect" where, during periods of economic downturn, consumers tend to purchase more "little luxuries" such as a lipstick, beauty treatments and cosmetics; this leads to a rise in clients in beauty salons and spas.

The link between make-up and economic times is an old one. When an executive at Estée Lauder noted that sales of expensive lipsticks soared in the wake of the 9/11 terror attacks, he dubbed it the Lipstick Index – an alternative economic indicator that sees make-up sales rise in a downturn. In the four years from 1929 to 1933, industrial production in the US halved, but sales of cosmetics rose.

“It’s not always lipstick that benefits,” said Toby Clark at Mintel. “In the last recession premium fragrances did really well. Beauty is just a really good example of an indulgent purchase that is relatively affordable so you can treat yourself without breaking the bank.”

With a massive 40% employment rise in beauty therapy, it is undeniable that the beauty business is booming. This large scale boost is related to many factors, from the development of technology to an increase in consumer awareness but experts are now saying that Brexit also has a positive effect on the beauty industry, with what they call "The Lipstick Effect".