The boom times live on for the health and beauty sector, according to the latest research by Verdict Research, which provides research and consultancy services covering UK and European retail markets. UK Health & Beauty Retailers 2008 shows that consumer spending on health and beauty products in 2007 rose 4.7 per cent to £15.6 billion in 2007, outperforming total UK retail, as it has since 2003.

The report points to a significant driver of this record growth – the development of men as significant consumers of these products. Total sales of men’s toiletries are forecast to grow by 7.7 per cent in 2008 as a wider availability of brands and products encourages men to try out new products with increased confidence.

Verdict has forecast that this trend for health and beauty products will continue well into 2008. It says consumers will not only carry on buying these products in greater amounts, but also increasingly upgrade to more luxury brands as such purchases are seen to be easier to justify than large big-ticket items.

Total retail growth is forecast at just 2.8 per cent for 2008 due to shaken consumer confidence as mortgage costs, utility prices and transport costs increase, further compounded by a weak property market.

The big four grocers dominate by sales, holding a solid 40.6 per cent or £6.3 billion worth of the health and beauty sector. The research points however to the move to niche brands that offer luxury and ethical goods creating opportunities for premium operators such as Space NK and Molton Brown to grow market share quickly in this glittering sphere.