In the face of a global cost-of-living crisis, and with inflation rates and rising costs of essentials squeezing into the budget of consumers, it is not out of place to expect the luxury beauty industry to suffer significant setbacks. However, the luxury beauty sector has historically proven itself resistant to economic downturns, and the current global economic pressures seem no different. L’Oréal, the largest beauty company globally, reported a 12% rise in sales for the first half of 2023, and an 11% increase for the whole of 2023, exceeding market expectations even as inflation surges in key regions like Europe and North America. Similarly, companies like LVMH and Chanel have noted that their premium beauty lines continue to perform well, despite the growing financial challenges facing their consumers.As it seems, consumers are not just sticking with their preferred premium products—they are continuing to indulge in these luxuries, despite financial pressures. A report by KPMG International reveals that luxury consumers are often less price-sensitive than mass-market shoppers, and tend to see beauty as an affordable indulgence so long as there is sustenance, longevity, and long-term benefits. This is also because mass-market shoppers are getting hit harder by the cost of living crisis, as inflation in the US for example is running at 7.2% for the lowest-income households, as against the highest-income families whose rate sat at 6.6% in 2022.This means that even if they cut back on larger purchases like fashion or travel, they may still treat themselves to a high-end lipstick or skincare product—a phenomenon experts have referred to as the “lipstick effect.