With inflation on the rise it seems like everything is costing more at the shops, retailers say it’s impacting what we’re buying, but also where we’re buying from.
New Zealand’s leading supermarkets report a growth in their beauty sales, with more people picking up mascara alongside their macaroni.
A spokesperson for Foodstuffs, the grocery co-operative behind New World, Pak’nSave, and Four Square told the Herald while the grocery category remains flat year on year across both North and South co-ops, it has seen slight growth in the beauty and personal care category of its North Island co-op over the past year, driven mainly by sales from Pak’nSave stores.
Their purchasing patterns show shoppers are actively seeking out value, “buying in bulk, opting for mainstream brands, and using unit pricing to stretch their budgets further”.
A Woolworths spokesperson said to meet demand for its beauty products the supermarket chain is “bringing more variety into our stores, offering customers more choice in our personal and beauty care categories”.
The retailer says economic pressures are driving this change in shopping habits, citing “a definite trend towards value brands and private label offerings as customers tighten their spend”.
Both retailers say stocking decisions are also being influenced by the digital reputation of their brands. Last week Woolworths introduced viral US razor brand Billie on to shelves. Alongside a growing digital fanbase, Woolworths said Billie’s presence “offers customers an affordable hair removal choice known for its aesthetic design, high-performance blades and inclusive brand ethos”.
Foodstuffs is also seeing shoppers shift from straight beauty products to health and wellness-driven skincare. “Globally and locally, skincare is moving from a cosmetic to a more health-centred focus.”
Younger customers are especially embracing ingredient-led routines, influenced by social media. Foodstuffs say products such as serums and sunscreens with skincare benefits are proving popular.
At Woolworths, beauty supplements and collagen drinks have seen a significant increase in demand. It says brands like Swisse and Me Today are at the forefront. “We are strategically placing these products alongside our skincare offerings, observing that customers are cross-shopping as they seek holistic beauty solutions.”
MCoBeauty was one brand name-checked by Woolworths as luring shoppers who may have previously purchased beauty items elsewhere. “MCoBeauty continues to drive strong sales, leading us to expand its range within Woolworths New Zealand.”
Alongside cosmetics, Woolworths stocks fragrance mists, skincare, and on-trend fashion accessories from the brand that focuses on a luxe-for-less approach. This expansion aligns with a wider surge in demand for “dupes” - affordable alternatives to popular, often luxury, cosmetic products.
MCoBeauty is also stocked at The Warehouse, which has been refreshing its beauty offering, prioritising lines which are “on trend”. Last year the low-cost retailer launched its first private bodycare line, Good One, and a teen-focused beauty range called Poppi.
The burgeoning beauty market isn’t just being leveraged by the grocery sector. Last year Green Cross Health, the parent company of Unichem and Life Pharmacies, launched a new store concept, Beauty by Life, which offers beauty brands spanning cosmetics, fragrance, skincare, haircare and wellbeing at a variety of price points alongside a full-service pharmacy.
In 2024 Monday Haircare founder Jaimee Lupton launched two bodycare brands in the span of eight weeks and shared that she had 15 new brands in development, spanning personal care, deodorant, clinical haircare and personal fragrance. Delivering premium body care en masse is a focus for Lupton, who at the time told Viva, “We’re constantly asking ourselves how we can make beauty products for less than $10″.
Discretionary spending across the country remains generally soft with households prioritising essentials during a period of increased costs, but the beauty and personal care market in New Zealand is expected to grow at an annual rate of 4.9% between 2025 and 2030.