Find our most loved picks Shop now Find our most loved picks Shop now Free gift with 75$ orders! Shop all Free standard shipping with $50 US orders Shop all Find our most loved picks Shop all
  • SHOP
  • EXPLORE
Everything You Need to Know About the “Lipstick Effect”

Canceled Netflix subscriptions. Less Doordash orders. Fewer vacations. These are some of the first things to go when personal budgets start to tighten. One might also think that, during an economic recession, beauty products wouldn’t be in high demand either. But in fact, the opposite is so true that there’s even a name for it: The Lipstick Effect. The trend was first identified in 1998 by economist Juliet Schor, but it was Leonard Lauder who coined it following Estée Lauder’s announcement that its lipstick sales had skyrocketed in 2001, despite economic recession.

This spending habit, during difficult times, is likely the case because beauty products, such as lipsticks, “make us feel good and happy,” Tufts University associate economics professor, Edward Kutsoati tells Rose Inc. “There are clearly strong emotional ties to the makeup category that stretch beyond physical appearance,” says Natalia Bambiza, director and beauty category analyst at NPD Market Research Group. In comparison to people who use makeup to just enhance their appearance, “64% of consumers ages 13 to 25 say they wear makeup for a confidence boost,” she says. Meanwhile, “30% of all makeup wearers say that makeup brings them joy.”

To better understand these spending habits, the meaning of the Lipstick Effect and its significance — and why you might feel compelled to give your own makeup kit a few upgrades when the economy takes a nosedive — we break down everything you need to know.

“There are clearly strong emotional ties to the makeup category that stretch beyond physical appearance.”

Your Bag 0

Choose Your Free Gift


Select 1 free gift
You're $ 65 away from choosing your free gift.

Order total must be 65 to select gift.

White Gold Shimmer

Light gold with pearl

Satin Copper

Rich red copper

Last Chance

Besotted

Beige pink

Recommended


Liquid error (snippets/mini-cart line 314): invalid url input

Hydrangea

Light cool pink

Original price: $32 Current price: $32

Cream Blush Refillable Cheek & Lip Color

A hydrating cream that brightens and blurs with a radiant...

Current price: $32
Liquid error (snippets/mini-cart line 314): invalid url input

Current price: $18

Travel Size Solar Power Luminous SPF 30 Serum

A non-comedogenic, daily sunscreen with the benefits of a brightening...

Current price: $18
Liquid error (snippets/mini-cart line 314): invalid url input

Besotted

Beige pink

Original price: $28 Current price: $28

Satin Lip Color Rich Refillable Lipstick

Creamy lipstick that plumps the lips while drenching delicate skin...

Current price: $28
Liquid error (snippets/mini-cart line 314): invalid url input

Current price: $26

Travel Size Radiant Reveal Brightening Serum

A powerful hydrating serum that instantly brightens the complexion with...

Current price: $26
Liquid error (snippets/mini-cart line 314): invalid url input

Original price: $27 Current price: $19

The Satin Lip Trio

Two mini versions of our bestselling shades and one limited...

Original price: $27 Current price: $19
Liquid error (snippets/mini-cart line 314): invalid url input

Current price: $26

Brow Renew Enriched Clear Shaping Gel

A conditioning pomade-serum hybrid that volumizes and grooms for expertly shaped brows.

Current price: $26
Liquid error (snippets/mini-cart line 314): invalid url input

Current price: $32

Number 3 Foundation Brush

An angled brush designed for control and seamless blending along...

Current price: $32
Liquid error (snippets/mini-cart line 314): invalid url input

Clear

Lip Treatment Hydrating Lip Balm

Current price: $22

Lip Treatment Hydrating Lip Balm

A clean beauty essential for nourished, healthy lips. Powered by...

Current price: $22
$0.00
or 4 interest-free installments of $0.00 by Continue shopping
}