Sales of prestige lip products in the UK have surged by 16 per cent year-on-year to £80.4 million in the six months to June, as cash-strapped consumers turn to small luxuries to lift their mood — a classic example of the so-called “lipstick effect.”
The term, coined by Leonard Lauder, former chairman of Estée Lauder, describes how sales of cosmetics and affordable indulgences tend to rise during economic downturns as consumers forgo big-ticket items but still seek moments of emotional reward.
New data from market research firm Circana suggests the trend is alive and well in 2025. Lip product sales grew at nearly double the rate of the broader make-up category, and more than three times the pace of eye make-up sales, highlighting the growing demand for portable, feel-good beauty items.
“While 2025 has been a challenging year and many consumers have become selective in their spending, they are still splashing out on affordable luxuries like lipstick and beauty buys to boost their mood,” said June Jensen, vice-president of Circana’s UK prestige beauty division.
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