The reflection of consumer preferences on the cosmetics sector during periods of economic contraction
As economic uncertainties increase, consumers postponing major purchases are turning to accessible small luxuries such as cosmetics and personal care products.
During periods of economic uncertainty, while major expenditures are postponed, consumers turning to small luxuries such as cosmetics, skin care, and perfume is defined as the lipstick effect; however, today this concept has evolved from a single product into selective and value-driven consumption behavior under budget constraints.
Economic Uncertainty and Small Luxuries
During periods of economic uncertainty, while major expenditures are postponed, consumers turning to smaller purchases that make them feel good is defined as the lipstick effect. This behavior, once read solely through lipstick sales, today extends to cosmetics, skin care, perfume, and affordable luxury products.
The Birth of the Lipstick Index Concept
The popularization of the lipstick effect concept is based on Estée Lauder executive Leonard Lauder's observations in 2001 following the September 11 attacks. Lauder stated that consumers were turning to accessible luxuries instead of expensive products and named this the Lipstick Index. Today, however, the consumer redistributes the same budget among categories.
Sectoral Research and Data
A beauty survey published by McKinsey in 2025 shows that consumers consider beauty products among accessible expenditures. In Turkey, according to Euromonitor data, retail sales of the beauty and personal care sector increased by 39 percent in 2025.
Value-Driven Selective Consumption
Today, the contemporary equivalent of the lipstick effect needs to be read not merely as small luxury consumption, but as selective consumption with a limited budget. The consumer postpones the major expenditure, but expects the small product they buy to truly create value and establish a balance of price, performance, and functionality.