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In 2021, demand for lipstick in the US notably improved as COVID-19 mask restriction requirements and lockdowns relaxed. The momentum behind lip products is expected to be bolstered by consumers looking to refresh their existing lip inventory after years of limited use and new trends. Following a 27% decline in retail sales in 2020, sales in 2021 grew by 16% and in 2022 are expected to grow by 14% to reach USD2.8 billion or near to 2019 pre-pandemic levels. With increased cost-push and demand-pull inflationary drivers in lipstick alongside all beauty goods, lipstick suppliers’ pricing strategies and functional benefit claims are critical for standing out in a highly competitive field. Using Via, Euromonitor International’s e-commerce tracking tool, online prices and product availability of stock keeping units (SKUs) for the category and leading players (including private label) can be easily tracked and compared to understand:
Online lipstick product availability and prices in flux throughout 2021
Leading brands in lipstick see prices rise
Functional benefits support rise in lipstick
Price positioning and consumer reaction vary greatly across brands
With lipstick being a well- regarded “affordable luxury” during challenging economic times, identifying which claims are well-received by customers alongside their price points provides important strategic information moving forward.
As consumers and companies struggle to adjust to new inflationary pressures, monitoring online prices, availability and ratings for select categories and baskets of goods provides key insights into how price increases are manifesting themselves across categories, companies and pack sizes and how consumers are reacting to these changes. Companies need to closely track these changing online metrics from a variety of perspectives in order to track competition and identify pricing advantages and opportunities.
Learn more about how Via can support your business and help you unlock key strategic and tactical insights with its standardised online product coverage across 80 countries, 2,000 online retailers and 11 consumer goods industries.
Note: Sample based on SKU prices found in Euromonitor International’s e-commerce tracking tool Via with data extracted in August 2022. Please note that due to ongoing improvements to the AI-led product matching of SKUs to categories, supplier, and brands, data and SKU counts can be revised based on system updates. SKU counts used for the analysis include: Total US Lipstick SKUs (January = 35,589, December 30,844). SKU information extracted from the following e-commerce retailers: Amazon, ASOS, Birchbox, Bloomingdale's, Blue Mercury, Boohoo Chanel, CVS, Dillard's, Dior, Estée Lauder, Feel Unique, Harris Teeter, Hy-Vee, iHerb, JC Penney, Kmart, lookfantastic, MAC Cosmetics, Macy's, Maybelline, Net-A-Porter, NYX Cosmetics, Safeway, Saks Fifth, Avenue, Sally Beauty, Sephora, SkinStore, Target, TJ Maxx, Ulta, Walgreens, Walmart, W
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