Cosmetics market in recovery

Cosmetics sales are said to be showing signs of recovery a year after plummeting due to the pandemic, which forced some industry players out of business and others back to the drawing board in a scurry to revive market share.

Beauty products were among the items bumped off the shopping list, as disposable income slumped in the near two years since the pandemic.

However, some segments of the cosmetics market kept afloat and have even recorded robust sales amid the general decline, while others have been responding to rising consumer demand for more mask-friendly products.

Lipsticks and lip gloss, among other facial cosmetics, had fallen into the slow-moving category.

Instead, consumers spent on products that would enhance the skin’s natural beauty, Maxie Department Store, which carries both make-up and skincare products, told the Financial Gleaner.

Maxie did not provide data to support its assessment, but CEO of Fontana Pharmacy Anne Chang has confirmed the changes in cosmetics consumption.

“I would say the most impacted was lipstick, due to mask wearing, but people are more focused on skincare than make-up. We saw large growth in the skincare market, as people wanted to take better care of themselves. Masks were making people break out, so we had record skincare sales,” Chang said.

Peta-Gaye Samuda-Palmer, CEO of Jencare Skin Farm, similarly noted that her company has seen an “explosion” in the demand for skincare products over the past year.

“Many of our customers shifted to our e-commerce option and we have observed year-over-year increase in skincare products. We are trying to keep up with the demand and have a lot of exciting things in store for the new year,” Samuda-Palmer said.

The size of the cosmetics market and the number of establishments that populate it are unknown, but as a proxy for the market fallout, the Yellow Pages presents a stark picture. The directory had 18 listings for cosmetics operators in 2019, but only nine as of 2021. And, the newly released 2022 directory only lists six cosmetic stores, suggesting the market is still in general decline.

True Shade, an organic make-up store that is owned and operated by skincare engineer Dianne Plummer, has managed to survive the pandemic, but it required an overhaul of the company.

“When the pandemic came, sales declined and I had to restructure my business. Most of my sales were coming from the United States and the diaspora, and so I changed the business model. I no longer sell products in Jamaica unless it’s purchased from our new website,” Plummer told the Financial Gleaner.

Plummer entered the beauty industry in 2014 with the launch of her locally manufactured products. Today, only a few Your True Shade-branded products are manufactured in Jamaica, she said.

“The main sellers for my business were face masks and matte lipstick, because that doesn’t stain the masks,” she said.

The renewed interest in cosmetics is said to be driven by the increasing COVID-19 vaccination rate, which allows for some to ditch masks, and sees more people returning to the office for work.

For others, a swipe of lipstick or a dab of make-up powder still lifts the spirit, even when veiled under a mask, beauty industry watchers and cosmetic companies say.

Cosmetic products such as eye highlights, foundation, and matte and glossy lipsticks are said to be on the rebound.

“Nowadays, even those wearing masks will adorn themselves in make-up. Psychologically, make-up builds confidence although nobody can see it,” said a representative at MAC Cosmetics, who gave her name as Kimberly.

“Additionally, consumers unveil their masks at the office desk or for online meetings. So it does get shown,” she said.

Currently, sales at the MAC Jamaica store in Kingston are holding their own, although not at the level of 2019, Kimberly said.

Fontana Limited, which operates a chain of six pharmacies with dedicated cosmetics sections, is reporting a 40 per cent increase in cosmetic sales relative to 2020, but a fall-off by similar levels when compared to the pre-pandemic period in 2019.

“We are seeing an uptake because of digital meetings via Zoom, Google Meet, and so on, and even small gatherings,” said Chang.

“Also, COVID-19 fatigue is setting in and people want to start feeling a sense of ‘normalcy’, as well as feeling good about themselves,” said the pharmacy CEO.

But while cosmetics sales numbers are trending up, there are still challenges that could impact the level of recovery.

“Our suppliers have been impacted by the supply chain issues, and this affects our inventory,” Chang said.

Samuda-Palmer of Jencare also confirmed the challenges in the supply chain since 2020, but said the experience gained after years in business has helped the company manoeuvre them.

“We are hopeful that we will move past those issues in the new year,” she said.

karena.bennett@gleanerjm.comsteven.jackson@gleanerjm.com