The Black Pound Report: The £2.7billion Missed Opportunity

Feb 3, 2022

The Black Pound Report 2022 has unveiled the untapped economic power of the UK’s Multi-Ethnic consumer, with the health and beauty market being valued at £2.7billion. The British Beauty Council’s Value of Beauty Report valued total consumer spend in the industry at £27.2billion, meaning that a staggering 10% of consumer spending is being missed.

Every month, Multi-Ethnic consumers are spending £230million on health and beauty, however nearly 4 in 10 Black female shoppers state that it’s not easy to find cosmetics and skincare. On average, Multi-Ethnic consumers spend 25% more on health and beauty products than other consumers, due in part to 22% of all Multi-Ethnic consumers needing to use specialist shops to purchase their health and beauty products (this increases to 30% for Black women).

 

“When there is an audience spending £2.7 billion every year on Health and Beauty products, demonstrating that they want to spend their money with businesses on their high street, why on Earth would brands not want a slice of that pie? The Black Pound Report is helping businesses to understand the value of inclusion in the products they create, stock and market.”

– Lydia Amoah, Founder and CEO of BACKLIGHT, who creates and published the Black Pound Report

 

The Black Pound Report reveals how brands can appeal to Black, Asian and Multi-Ethnic consumers through being more inclusive, and thinking about diversity throughout their product creation and in their advertising. 93% of Multi-Ethnic consumers think that brands have a responsibility to approach diversity and inclusivity. Furthermore, the Report found that Multi-Ethnic consumers are around twice as likely than White consumers to favour and trust brands that are: representative of different communities, have considered ethnic diversity in the creation of their products and services, and have diverse employees from the shop floors to the boardroom.

 

8 in 10 Multi-Ethnic consumers would make a point of telling their friends about it if a company or brand impressed them in some way. Additionally, 59% of Black, Asian and Multi-Ethnic people say they are more likely to purchase products from a brand with an inclusive product range.

 

One of the more concerning findings from the Black Pound Report is the frequency to which Multi-Ethnic consumers employ ‘Psychological Passing’, especially in retail environments. The Report explains that ‘Psychological Passing’ is felt by all ethnicities, but there is a higher propensity amongst Multi-Ethnic consumers; this is where consumers feel they need to adjust and adapt their appearance or behaviour to ‘fit in’, to mitigate against profiling by security staff and shop workers. 13% of Multi-Ethnic respondents admit they have consciously changed the way they dress, and 12% changed the way they spoke to be socially accepted. Multi-Ethnic consumers who are LGBTQIA+ or have a disability are 10% more likely to have adjusted their behaviour when in a store, highlighting the impact of intersectionality shopping experiences

 

The Black Pound Report has been created to evolve and change the way businesses treat their consumers so that everyone is treated with respect and served equally.

 

“Congratulations to Lydia and the team behind the Black Pound Report for their work. There has been so much positive movement for Black and Multi-Ethnic consumers in the fashion and beauty sector in recent years, and it is brilliant to see the continued push for change happening in our industry.”

Edward Enninful OBE, British Vogue’s editor-in-chief and European editorial director

 

Conducted by Opinium, the Black Pound Report surveyed 3,500 participants about their purchasing experiences and decisions. The report provides new insights for businesses keen to reach, engage and understand the Multi-Ethnic consumer. It includes an in-depth look at attitudes and behaviours, spending patterns and buying decisions, all analysed through the lens of cultural identity, consumer motivation, and career and entrepreneurial ambition. The report is sponsored by News UK, and supported by Channel 4 and the IPA.

 

It is available to download here.

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