Insights Flash: How Economic Jitters Are Shaping Shopper Behavior
As inflation-wary consumers navigate ongoing economic uncertainty, CE’s Basketview purchase data—delivered with just a four-day lag for near real-time insights—is revealing fresh signs of trade-down behavior in the Beauty category. Shoppers at mass retailers like Walmart, Target, and Walgreens are increasingly opting for lower-priced brands, while premium players are losing share. The shift signals growing consumer caution, especially in routine-based categories where value is becoming a key decision driver.
In this analysis, we examine volume share changes since the beginning of the year and see how those relate to price points in key categories – Cleansers & Toners, Face Makeup and Eye Makeup. While there are some exceptions, the overall takeaway is that value-oriented brands are benefitting in recent weeks from the cautious consumer environment.
In Cleansers & Toners, the data revealed a very clear inverse relationship between price point and market share gain/losses since the beginning of the year, suggesting that shoppers are making a concerted effort to cut down costs while still maintaining their routines. Garnier was the biggest beneficiary, likely supported by its broad shelf presence at mass retailers. In contrast, La Roche-Posay – positioned as a dermatologist-recommended brand – may be losing share due to its price point sitting between mass and prestige, leaving it more exposed in a cautious environment.
In Face Makeup, lower priced players Coty and E.L.F picked up share since the beginning of the year, benefitting from both affordability and relevance among younger consumers. Revlon, which remains challenged by limited innovation and a weaker brand presence, ceded the most share. Maybelline lost volume share despite the attractive price point, while L’Oreal’s was only slightly negative even though it is the most expensive among the larger players.
In Eye Makeup, where demand tends to be sticker given the low price-per-use, mid-tier Coty improved its position the most, while NYX and E.L.F. also gained. Consumers shied away from L’Oreal’s high price point.
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About the Authors
Alex Breslin-Johnson is a Senior Insights Analyst for the CEIC. Follow him on LinkedIn.
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