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Beauty Growth Forecast Flat To 2.5% In Q1 As Consumers Trade Down In Select Categories
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Economic uncertainty is driving beauty consumers to shift spending patterns, with higher-income shoppers trading down to value retailers while lower-income consumers pull back selectively, according to an article featuring Alvarez & Marsal's Consumer and Retail Group.
“Higher-income consumers will continue spending but optimize and engage in high-low behavior, while lower-income consumers pull back selectively,” said Manola Soler, managing director at Alvarez & Marsal’s Consumer and Retail Group. “It will reinforce a polarized market and put pressure on the middle.” Despite consumer confidence falling to its lowest level in over 10 years, Americans aren’t dramatically pulling back on beauty spending—they’re making sharper choices about where and how they spend, with higher-income shoppers switching to cheaper retailers rather than cheaper brands.