Consumers in the UK are becoming increasingly conscious of the impact their purchasing decisions have on the environment and animal welfare. However, during periods of economic uncertainty, consumers are far less likely to prioritise ethical environmentally conscious and cruelty-free products. Due to financial constraints; the ability to purchase ethically is ostensibly a luxury that few can afford. This is especially concerning in the saturated cosmetics market. Where an estimated 88% of leading skincare and makeup brands can offer cheaper prices as a result of forgoing costly sustainable and ethical ingredients and testing practices. Nevertheless, the rise of “masstige” (mass-market prestige) cosmetic products could put a stop to consumers having to choose between price and personal values.

According to research conducted by Deloitte in 2021, a third of consumers look for brands with strong sustainable (34%) and ethical (30%) credentials. However, Mintel reported that 44% of consumers are less likely to pay a premium for environmentally friendly products during periods of economic uncertainty. So how does this play out given that more than 70% of people in the UK don’t expect their financial situation to improve in the next six months? Will we buy cheaper cosmetics at the expense of deserting our values, or will we continue paying for our preferred sustainable and ethical brands, even if prices soar? 

In fact, during periods of economic uncertainty, consumers tend to prioritise affordability over other factors, such as environmental and animal welfare. This shift in priorities can be seen in many markets, including the UK. The perception that environmentally conscious and cruelty-free products are more expensive than traditional products can also impact consumers’ choices during economic uncertainty. But consumer behaviour is known to be irrational, so it’s of little surprise that when it comes to treating ourselves with cosmetics. Almost 70% of people would still be willing to pay slightly more for products produced by companies known for ethical practices, if the price was right.

However, we may not have to pay a premium to get ethical products at all. Currently, there is a growing trend towards “masstige” cosmetics, which offer high quality, ethical formulations at an affordable price. These products allow consumers to balance their budgets and their values, without having to compromise on quality. They might also help prevent the decline of environmentally conscious and cruelty-free product purchases during economic uncertainty by making them more accessible to the general public at competitive price points.

Market research shows that the demand for masstige cosmetics is growing rapidly. According to a report by Allied Market Research, the global masstige cosmetics market size was valued at $9.1 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.3% from now until 2028. The report attributes this growth to a rising demand for high-quality, affordable cosmetics that are sustainable and cruelty-free, especially among younger consumers for whom the cost of living crisis is affecting the worst. 

However, in tough financial times, sales of less costly luxury goods are actually known to rise. This is known as the lipstick effect, and it’s great news for masstige cosmetics companies. But in this space, who is winning? One example of a successful masstige cosmetics company riding the lipstick effect wave is The Ordinary, a Canadian brand that offers affordable, science-backed skincare products. The Ordinary’s products are formulated with high-quality cruelty-free ingredients containing zero common skincare irritants, yet their products start from the affordable price of just £5. The company’s minimalist packaging and direct-to-consumer business model help keep costs low, making their products accessible to a wider audience.

Another successful masstige cosmetics company is Glossier, a US-based brand that has gained a cult following for its minimalist skincare and makeup products. Glossier’s products are designed to enhance natural beauty and are formulated with gentle, skin-loving ingredients. The company’s millennial-friendly branding and social media strategy have helped it build a loyal customer base. Last year, Glossier was valued at $1.8 billion, making it one of the most valuable privately held beauty companies in the world, and it is expected to grow further as it expands its D2C model to encompass part of Sephora’s brand offerings.

At their core, the success of masstige brands like The Ordinary and Glossier is a testament to the growing demand for high-quality, affordable, and sustainable cosmetics. Masstige brands offer consumers a way to make responsible purchasing decisions without sacrificing quality, style, or ethics. Moreover, as consumers become aware of the impact their purchasing decisions have on the planet, we can expect to see the masstige cosmetics market continue to grow in the coming years.

D2C masstige companies, such as The Ordinary and Glossier, are particularly well situated to take advantage of discrete market shifts such as the lipstick effect because they have the advantage of owning their narratives. Unlike traditional brick-and-mortar stores, D2C companies have more control over their messaging and can create a direct connection with their customers through social media and other channels. This allows them to communicate their values, such as sustainability and ethical sourcing, more effectively to build a loyal customer base that sticks around through financial turmoil. 

Reports show that D2C masstige cosmetics are growing in popularity, with sales expected to reach $22.5 billion by 2028. While this trend can be attributed to a growing awareness among consumers about the impact of their purchasing decisions on the environment and animal welfare, it tells us something important about the way consumers behave in a financial downturn, as well as what beliefs are important enough to stick by even when funds are running low. 

In the UK, where the cost of living crisis has put a strain on consumers’ budgets, D2C masstige cosmetics could provide a viable method for consumers who want to make conscious choices without breaking the bank. D2C masstige cosmetics companies, who can quickly adapt their messaging to external stimuli, are likely to continue growing in popularity throughout these unpredictable times. As consumers understand the impact of their purchases on environmental and animal welfare, masstige cosmetics allows us to put the little money we may have where our mouths are.