Within beauty circles, the Lipstick Effect has become a pervasive theory, proven time and time again. It states that despite facing economic uncertainty, such as during a recession or rise in inflation, consumers spending focuses more on smaller luxury items — such as lipstick — as opposed to bigger purchases like purses or jewelry.
Julian Reis, founder and chief executive officer of SuperOrdinary and a global growth partner and marketplace expert, told WWD he has seen a steady rise in the market recently for men’s personal care. Reis has labeled this phenomenon the “Chapstick Effect.”
Here, Reis speaks with WWD about influencers and celebrities affect on the recent rise, consumer trends within the emerging market and why the male demographic is turning to personal care.
WWD: What is the Chapstick Effect? And what does this mean for beauty brands and retailers?
Julian Reis: The Chapstick Effect is a play on the economic phenomena referred to as the Lipstick Effect or Lipstick Index. It theorizes that when consumer trust in the economy dwindles, consumers will buy luxury goods that have less impact on their available funds, like premium fragrances, cosmetics or personal care products. The Chapstick Effect specifically looks at how this theory works with men’s products.
WWD: What have been the recent consumer spending trends in the men’s personal care market?
J.R.: The men’s personal care category is certainly gaining traction. According to a market research study published by Custom Market Insights, the global male grooming market was valued at approximately $55 billion in 2021. By 2030, that’s expected to reach $110 billion. We’re also seeing men adopt “shelfie” and “get ready with me” trends that brands like Glossier made famous for women in the last decade.
TikTok has seen real growth in male grooming routine content, with #GRWM [get ready with me] videos by male creators reaching more than 83.2 billion views overall.
WWD: In what ways have influencers or celebrities who have gotten into the market changed the perception of personal care for men?
J.R.: Celebrities like Pharrell Williams and Brad Pitt are normalizing the three-step routine for men, which is a departure from the one-product-does-it-all trend that has been pervasive in the men’s category until now, opening new growth opportunities.
WWD: Why are men turning more to the personal care market now?
J.R.: There are a couple of trends that could be the source of this category awakening. Men seem to be embracing the view that personal care is an integral piece to their overall health and wellness routine more than ever before. The growth of the self care industry across all genders is a factor, as is the increasing destigmatization of gender norms by brands and consumers.
TikTok trends reflect this growing interest in skin care for Millennials and Generation Z men versus older cohorts the #mensskincare hashtag draws up approximately 350,000 results on Instagram while on TikTok, the same hashtag has over 295 million views.
WWD: How is the recent increase in inflation affecting this? What are predictions for the market moving forward?
J.R.: Consistently in down-markets, we see purchases of small luxuries in personal care, cosmetics and fragrances stay steady or increase due to consumers having less money for frivolous spending and a psychological need to lift spirits. Moving forward, we expect this to continue as independent brands may need to pull back on influencer marketing spend, leading to a surge of content around lower price-range products and mass brands.
WWD: How are manufacturers, the supply chain, retailers and start-up companies viewing this growth in interest and adapting to them currently?
J.R.: Branding is becoming more gender inclusive, appealing to all genders as opposed to marketing to just one. We are seeing more personal care in the men’s aisles than ever before, both in mass and premium retailers.