UK beauty and personal luxury advertising set for sluggish recovery, says Zenith

UK beauty and personal luxury advertising set for sluggish recovery, says Zenith

Zenith predicts that advertising spend by UK beauty and personal luxury brands will increase by 3.1% this year from £587 million to £605 million.

However, this is still below the 4.4% growth rate forecast across all categories in these markets in 2021, and also below the 10.9% growth rate forecast for the market as a whole.

According to Zenith’s Business Intelligence – Beauty and Personal Luxury report, technologies like video-on-demand and connected TV, plus social platforms like Instagram and TikTok, are creating new premium environments that showcase beauty and personal luxury brands effectively.

Brands have also greatly stepped-up investment in their e-commerce offerings since the start of the pandemic as a matter of necessity, as bricks-and-mortar retail sales shrank.

In the UK, beauty and personal luxury brands spent 52% of their budgets on digital in 2020, compared to 34% across all other markets.

Tim Payne, group strategy director at Zenith UK said: “Whilst growth will remain subdued in the beauty category, we cannot underestimate the transformative power of beauty to uplift and energise the consumer’s mood during these tumultuous times.

“The beauty category’s return to growth will undoubtedly be slow and sluggish, but the seismic shift to digital sales and the marked increase in digital consumption offers brands as many opportunities as it does challenges.

“2021 will see a renewed focus on first-party data (especially with the decline in third-party tracking), an every-impression-counts approach to e-commerce, as well as, delivering tech solutions that are both easy-to-use and genuinely useful at the point-of-need for beauty lovers.”

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