Sales in the first quarter increased by 48%! The lipstick consumption craze in the United States is back

It is learned that according to the latest research from NPD, the lipstick consumption craze in the United States is making a comeback after experiencing a decline in sales during the epidemic.

The term "lipstick effect" was coined by economist Leonard Lauder in the early 2000s, referring to the economic phenomenon that lipstick sales increase during economic downturns. This phenomenon was also noticed during the Great Depression when cosmetic sales increased between 1929 and 1933.

This phenomenon is explained by the fact that when disposable income is limited, consumers have no choice but to buy expensive non-essential items, and lipstick, which is significantly cheaper than designer accessories, clothing or jewelry, plays the role of "affordable luxury."

According to NPD's Color Cosmetics Consumer Report, lipstick is one of the most impulse-purchased products, second only to lip gloss.

As the COVID-19 pandemic hit in 2020, economic sentiment was far from optimistic. However, the cosmetics market recorded a significant decline in sales. Due to mask requirements, lipstick has gone from a "must have" to a "don't need". The "perfume effect" has replaced the "lipstick effect" and become a new social symbol.

The fragrance category has experienced unprecedented growth during the pandemic. Its popularity is not only visible in sales figures, according to the NPD Composite Survey.

As mask requirements lift and socializing becomes more common again, makeup has been seeing a resurgence. Lip gloss is now the fastest-growing product in the category, with sales revenue increasing 48% in the first quarter of 2022 compared to last year. However, this growth is not just the market resizing itself and trying to recover lost sales.

Consumer sentiment has been declining over the past year, with confidence in personal finances and major purchases falling to all-time lows in March compared with the previous year, according to CivicScience. But lipstick sales are growing every week. Lipstick has once again become an “affordable luxury” that consumers seek emotional comfort from.

Editor✎ Ashley/

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