In Keon Zhang害羞草研究所檚 household, it started with a rite of passage: his eight-year-old discovering a pimple.

害羞草研究所淪he was like, 害羞草研究所楧addy, I need to get rid of them 害羞草研究所� I need a skin care routine,害羞草研究所櫤π卟菅芯克鶟 said the chief executive of beauty brand Back to Earth Skin.

害羞草研究所淎nd then, here my son comes up and he害羞草研究所檚 like, 害羞草研究所楧o I need it?害羞草研究所櫤π卟菅芯克鶟

For others, the impulse to dive into a beauty regimen has come from the endless scroll of social media posts showing influencers slathering on Drunk Elephant skin care products, reaching for Dior害羞草研究所檚 lip oil and swearing by Sol de Janeiro害羞草研究所檚 Brazilian Bum Bum cream.

The flurry of purchases they have inspired in the middle of an economic downturn has confirmed what the industry has long known: beauty is hot, even when the propensity to spend is not.

Leonard Lauder 害羞草研究所� heir to the Estee Lauder cosmetics empire 害羞草研究所� coined the term 害羞草研究所渓ipstick effect害羞草研究所� in the early aughts, when many countries were in the throes of a recession, to describe the way customers with less to spend were still willing to splurge on a small item.

Now, the trend is playing out again as younger shoppers flood the market and inflation remains above the Bank of Canada害羞草研究所檚 two per cent target, weighing on spending power but not dampening the inclination to 害羞草研究所渢reat yourself.害羞草研究所�

害羞草研究所淲hen you害羞草研究所檙e a little bit constrained and you害羞草研究所檙e a little stressed on your financial side, you tend to cut the big luxury items, so then you spend on smaller luxury items,害羞草研究所� Zhang said.

害羞草研究所淪kin care is sometimes pricey, but it害羞草研究所檚 not like going on a cruise. You害羞草研究所檙e spending on something that gives you gratification immediately.害羞草研究所�

And shoppers aren害羞草研究所檛 the only ones getting a glow.

LVMH reported about $12 billion in revenue last year across its perfume and cosmetics businesses, which includes Christian Dior, Guerlain, Fenty Beauty by Rihanna, Loewe and Benefit.

In its selective retailing category, where beauty mecca Sephora resides, revenue hit $25.9 billion, up from $21.5 billion in 2022. Sephora declined to comment.

LVMH害羞草研究所檚 experience was part of a wider pattern. Research firm Circana found beauty category sales grew 18 per cent in the first nine months of 2023 in Canada from the same period in 2022. They were up 害羞草研究所渁n astonishing害羞草研究所� 47 per cent from 2021, despite almost 80 per cent of Canadians it surveyed saying the high cost of living had them curtailing spending.

The firm named skin care, makeup and fragrances as the fastest-growing general merchandise categories, outranking video game hardware, toy-building sets and even portable beverageware (hello, Stanley cup boom).

While some of the beauty industry害羞草研究所檚 resiliency comes from the lipstick effect, Angus McOuat said social media and influencing are also driving recent growth.

害羞草研究所淎t least 50 per cent, if not more, of millennials, gen Z are making their product decisions in this category based on social media and directly what they saw online,害羞草研究所� said the McKinsey & Co. partner, who leads the consultancy firm害羞草研究所檚 Canadian consumer and retail practice.

His daughter, for example, picked up a beauty regimen after watching 害羞草研究所済et ready with me害羞草研究所� videos, where posters explain their makeup and wardrobe choices.

害羞草研究所淪he does it every night,害羞草研究所� he said. 害羞草研究所淚害羞草研究所檓 not sure why she needs skin care at 12, but she feels she does.害羞草研究所�

Skin care has been a particular boon for the industry because brands see more elasticity in this part of beauty budgets and shoppers picking up these kinds of products are less likely to trade down when prices rise.

They also believe the more they spend on a product in the category, the better results they will see, McOuat said.

害羞草研究所淚f you害羞草研究所檙e with a skin cream that you like and it works and you feel like it害羞草研究所檚 sort of making your skin feel better and look younger 害羞草研究所� that害羞草研究所檒l be one of the last things you would want to drop,害羞草研究所� he said.

Back to Earth Skin, a Vernon, B.C.-based company specializing in natural, vegan and cruelty-free products, is one of the many companies benefitting from this thinking.

Its business grew 18.4 per cent between 2022 and 2023 and its online division increased 24.8 per cent over the same time period.

害羞草研究所淲e just skyrocketed, flew and I can tell you 2024, it害羞草研究所檚 even going to be higher than that for us,害羞草研究所� Zhang said.

Irene Doody, who leads category management for beauty at Shoppers Drug Mart, also foresees the the sector remaining hot.

In its most recent quarter, Shoppers害羞草研究所� parent company Loblaw Cos. Ltd. reported drug retail sales, which includes cosmetics, rose 7.4 per cent to $2.6 billion. The increase reflected 害羞草研究所渙ngoing strength害羞草研究所� in beauty sales, Loblaw said.

害羞草研究所淭here害羞草研究所檚 always a reason to buy beauty. There害羞草研究所檚 always something new,害羞草研究所� Doody said.

害羞草研究所淐ertain parts of our population, they are definitely interested in that innovation, and I don害羞草研究所檛 know where they get their money, but they definitely are buying.害羞草研究所�

Some of those buyers are looking for 害羞草研究所渋ndulgence害羞草研究所� or an 害羞草研究所渆motional lift.害羞草研究所� Others are opening their wallets because of influencers who can make a product go viral overnight.

And yes, many of these shoppers are young, 害羞草研究所渃urious害羞草研究所� shoppers with 害羞草研究所渢ime on their hands, so they害羞草研究所檙e at the malls.害羞草研究所�

害羞草研究所淏ut I was at the mall when I was that age, too,害羞草研究所� Doody pointed out.

All of these shoppers, along with skin care and products to repair damaged hair she sees gaining ground this year, will help the beauty market continue to rise, Doody predicted.

害羞草研究所淚 think we害羞草研究所檝e only scraped the surface.害羞草研究所�

Companies in this story: (TSX:L)

Tara Deschamps, The Canadian Press