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.
It’s not just about colour anymore. Consumers are increasingly gravitating towards multi-functional products, particularly lip items that combine colour with skincare benefits. Sales of hydrating balms and lip oils surged by 21 per cent year-on-year, with shoppers seeking out formulas that moisturise, tint, and protect, often with added SPF or anti-ageing ingredients.
“These are moments of private indulgence and pleasure that offer refuge from a chaotic world,” Jensen added.
The trend has also been amplified by social media and influencer marketing, with platforms like TikTok and Instagram driving interest in new textures and hybrid formulations. Products like overnight lip masks, tinted balms, and skincare-infused glosses have seen a particular rise.
One standout brand is Laneige, whose products gained popularity through singer Charli XCX’s online endorsements and ambassador work, tapping into a younger demographic eager for accessible but aspirational beauty buys.
While lip products are leading the charge, Circana suggests the lipstick effect is expanding into other categories as consumers look for multi-purpose, mood-boosting beauty staples. Items such as tinted moisturisers, concealers, setting sprays, and powders with skincare benefits are showing early signs of similar growth.
“The lipstick effect is likely to continue flourishing in this economic climate,” said Jensen. “But it’s not just about lipstick anymore — it’s about affordable confidence in all forms.”
In an era of economic caution, the success of prestige beauty suggests that emotional uplift remains a priority — and that even a swipe of balm can offer a powerful form of escapism.
