"With their household budgets under pressure, consumers are looking for bargains. Private-label cosmetics and toiletries are well placed to cater to this demand. Supermarket own-label toiletries and haircare lines have been particularly successful at convincing consumers that their quality levels have improved. With product investment and savvy PR, other categories could look forward to similar levels of positive feedback and an increase in penetration."

• Brid Costello, Senior Beauty Analyst

For more information, see Mintel's report Private Label Beauty Products and Toiletries

What we've seen

• A vintage year for private-label beauty and personal care, 2010 saw a 70% year-on-year increase in own-brand launches, according to Mintel GNPD. This upswing in activity is reflected in consumer purchasing habits. Almost one in five adults, for instance, picked up own-label products in the 12 months to March because they felt a greater choice was on offer than in the past.

• In August 2011, Boots launched the "Ta-Dah" campaign for its No 7 make-up line. The campaign aimed to underscore the effectiveness of the line's products by eschewing airbrushing and featuring models that had not had cosmetic surgery.

• The hoopla surrounding positive scientific feedback on the effectiveness of Boots No 7's Protect & Perfect serum in 2007 has had a long-term impact on the private-label category. The performance of own-label lines is now relatively frequently compared with their branded counterparts. In June 2011, for instance, the News of the World ran an article about a £3.99 Lidl fragrance, which reportedly outperformed Chanel's Coco Mademoiselle in a blind test. Meanwhile, in August 2010, the Daily Mail touted the launch of Superdrug's £9.99 Optimum cream, which contains apple stem cells. The article pointed out that the ingredient had previously been restricted to much pricier products.

Buying habits, beauty and personal care, March 2011

Launch Activity

Among private-label beauty and personal care categories, toiletries are the most attractive to consumers, with over half opting to purchase own-label items such as shower gel and body lotion. This may be explained, in part, by the fact that soap, bath and shower products quite literally go down the drain as they are being used, so shoppers may feel unwilling to invest significant sums in the category. Reflecting this notion, almost six in ten adults who have bought more own-label products in the year to March 2011 because they are cheaper than branded products opted for supermarket value toiletries and haircare. These items are generally extremely competitively priced. On Mysupermarket.co.uk, for instance, a 300-ml. bottle of Sainsbury's Basic Shower Gel sells for 30p (or 10p per 100 ml). In contrast, a 250-ml. Radox Shower Therapy - Relax sells for £1.74 (or 70p per 100 ml).

For more information, see Mintel's report Private Label Beauty Products and Toiletries