Glossd

The world today feels like a constant balancing act. From geopolitical shifts to the lingering squeeze of global inflation, “current events” are no longer something we just read about—they’re shaping how we budget, shop, and define our personal style.

If your scroll feed has shifted from luxury hauls to smart shopping hacks, you’re not alone. The question is: in an economy where every dollar counts, are we still treating ourselves? And how are our non-negotiable values, like sustainability, holding up under the pressure?

Here is a breakdown of how the current economic landscape is truly redefining the contents of the modern beauty and style cabinet.

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1. The Resilience of the “Lipstick Effect”

It’s been a remarkable year for the health and beauty industry, which has proven itself surprisingly resilient to broader retail downturns. While sectors like apparel and accessories have faced headwinds, consumer spending in the health and beauty space was reportedly up by 7.3% year-on-year as of August 2024, according to data from Barclays [1].

This phenomenon is often called the “lipstick effect”—the theory that during economic slumps, consumers trade down on big-ticket items (like vacations or new cars) but continue to splurge on smaller, affordable luxuries, like a new fragrance, high-quality skincare, or a signature lipstick. Management consulting firm McKinsey & Company confirmed that beauty is still viewed as a coveted, yet “affordable discretionary item,” sustaining its growth, even as executives anticipate “restricted spending” as a top industry risk [2].

2. The Reign of the “Dupe” Economy

While we are still spending on beauty, we are doing so with vastly increased scrutiny on value, leading to one of the biggest trends of the current economic cycle: the rise of the “dupe” (or duplication) product.

Faced with the rising cost of living, nearly one-third of consumers surveyed (32%) reported actively buying cheaper alternatives—or “dupes”—for items such as makeup, fragrance, and beauty products to save money [1]. Further analysis by McKinsey showed that roughly 24% of consumers traded down to cheaper beauty products in the last 12 months [3].

This trend has driven innovation in the mass-market sector and forced high-end brands to work harder than ever to justify their price tags. The age of uncritical loyalty is over, as a large majority of consumers now feel that premium products are not necessarily higher-performing than their mass-market counterparts [3]. For the savvy consumer, this means the focus has shifted from brand name to efficacy and value.

3. Sustainability: A Non-Negotiable Priority

Another major current event shaping consumption is the climate crisis, and the data suggests that for many consumers, sustainability remains a priority despite the financial strain.

A 2024 global survey by PwC found a significant trend: consumers are willing to pay a premium for goods that align with their values [4]. Specifically, consumers expressed a willingness to spend an average of 9.7% more for products that are sustainably sourced or produced [4].

For a generation experiencing the impacts of climate change firsthand, prioritizing conscious consumption is about more than luxury; it’s a commitment. However, affordability remains the single biggest challenge. A separate Simon-Kucher study noted that the high price perception of sustainable goods is the biggest hurdle for 38% of consumers [5], showing the delicate balance brands must strike between environmental responsibility and making products accessible.

What This Means for Your Shopping List

The current events of 2024 and 2025 haven’t stopped us from buying beauty products—they have simply made us smarter shoppers.

• Audit Your Essentials: Focus your premium spending on the products that truly deliver superior results (like specialized skincare or quality haircare) and trade down on categories where “dupes” offer high performance (like many color cosmetics).
• Demand Transparency: If a brand claims to be sustainable, look beyond the eco-friendly packaging. The modern consumer must act like an investigator, demanding transparency and proof before paying a premium [5].
• Prioritize Value Over Volume: The ultimate smart shopping move is to buy less, but buy better, focusing on products that offer long-lasting wear or superior efficacy, justifying their cost over time [1].

In today’s climate, the best beauty investment is the one that gives you maximum value, supports your personal values, and brings you a little bit of affordable luxury, no matter what the news headlines say.

1. Barclays. The beauty boom: redefining consumer ‘essentials’. Barclays Insights, September 2024.
2. McKinsey & Company. State of Beauty 2025: Solving a shifting growth puzzle. McKinsey Insights, June 2025.
3. McKinsey & Company / Business of Fashion. High-End Beauty Brands Will Need to Work Harder Than Ever to Justify Their Prices. Fashionista (referencing McKinsey/BoF report), June 2025.
4. PwC. Consumers willing to pay 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh: PwC 2024 Voice of the Consumer Survey. PwC News Room, May 2024.
5. Simon-Kucher. Sustainability’s new normal: What 2024 consumers expect. Simon-Kucher Insights, June 2024.