Recession Glam drives consumers to demand cheaper beauty

Asia-Pacific shoppers are cutting costs but still expect premium experiences.

Asia-Pacific beauty brands are under pressure as consumers seek premium products at lower prices, a shift Euromonitor International identified as “Recession Glam.”

“Globally, consumers become more mindful of their spending, replacing the impulse purchases with more cautious and value driven choices,” said Yang Hu, Asia Pacific Insight Manager, Health and Beauty, Euromonitor. He added that shoppers are now comparing products with similar ingredients to identify the best value, often opting for smaller sizes or trading down to more affordable brands.

In Indonesia, the phenomenon has not diminished appetite for beauty but altered how consumers approach it. “Recession in Indonesia is not about abandoning beauty. It's more about downsizing smartly,” said Anastasia Gracia, Progressive Insight Division Head, at Kadence International Indonesia. She pointed to innovations such as refillable premium packaging from L’Oréal and Somethinc’s mini skincare kits that give consumers access to luxury experiences at a lower entry price.

Trade-offs are central to the new spending landscape. “Consumers are most willing to trade down on size and some non essential features while maintaining the expectations around quality and efficacy in beauty,” Hu explained. He cited Euromonitor data showing that in 2024, 10% of Asia Pacific consumers purchased cosmetics because they were cheaper.

Gracia highlighted that Indonesian buyers are highly pragmatic. “Price is the first lever. Most consumers compare across platforms, wait for discounts or switch to local brands if they can get similar results,” she said. Mini or trial sizes are popular among younger shoppers, while features such as fragrance or added steps are skipped. “Indonesians will trade prices. They will shrink the size. They will even skip extras. But Indonesians won't give up safety or that flawless finish, the glow and premium feel always stay.”

To sustain quality under cost pressures, Hu said brands should streamline portfolios and concentrate on top performers. Gracia added that simplifying formulations, optimising Instagram-worthy yet affordable packaging, and creating multifunctional products can help.