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Beauty industry flourishing amid inflation

Mood to Spend
Posted at 1:11 PM, Sep 12, 2022
and last updated 2022-09-12 13:11:54-04

As Americans face rising prices, beauty products are still flying off shelves.

"People are excited to be able to express themselves in a way that doesn't cost as much money as a new Dior bag or like a pair of Louboutin boots or something like that," said beauty editor Khalea Underwood. "I do believe a $28 lipstick is an attainable luxury."

Underwood has named the phenomenon "The Lipstick Effect."

She says it happens when people still spend money on small luxuries when the economy is suffering.

"A great pigmented lipstick could easily work on your cheeks or eyelids," she said. "You’re getting more bang for your buck and the buck is not as much as like a big luxury.”

Many beauty companies have also found success through social media.

Popular platforms like TikTok have turned many brands into household names. They typically partner with influencers to tout products and provide tutorials.

The marketing strategy is working. Recent data shows the beauty industry is worth more than $500 million worldwide. It's estimated to reach roughly $800 billion by 2025.

"With all of these resources like TikTok, YouTube, Instagram Reels, you have all of this access to knowledge of how to execute that look of your dreams too," Underwood said.

Underwood said she wouldn't be surprised if inflation catches up to the industry eventually. However, she said loyal customers likely won't give up their favorite products.