Despite recent record highs for the stock market, inflation remains sticky. How are consumers responding to this persistent threat? Recent findings from McKinsey & Co. indicate that consumers intend to reduce spending on makeup and skincare due to perceived high pricing in these categories.In a recent webinar, Alexis Wolfer, Associate Partner at McKinsey, shared insights from a survey conducted by the consulting firm. McKinsey found that 30% of consumers surveyed reported buying fewer “bonus” beauty and personal care items this year to date. Consumers prioritized purchasing essential items, leading to a decrease in the number of beauty products bought per shopping trip. In the same survey, consumers noted that they stocked up on beauty products during sales and promotional events.“There was this notion, particularly when we spoke to this most recent panel of consumers at the end of December [2023], that ‘I reduced because I had purchased previously,’” says Wolfer.For consumers who want to reduce their spending, beauty is the first category they're cutting. According to McKinsey, makeup and skincare exhibit the highest consumer intent to reduce spending among all merchandise categories, surpassing household goods, toys, pet food, vitamins, and fitness.Data indicates that consumers began to scale back spending in specific personal care, beauty, and wellness categories during the fourth quarter of last year. According to McKinsey, sales in categories such as bath and shower products, vitamins and supplements, first aid items, haircare, and pain relief products decreased by 4% to 6% compared to the same period in the previous year.