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Why Beauty Wins in Uncertain Economies: The e.l.f. Playbook for Smart Self-Care

When the economy gets uncertain, consumers don't stop spending... they get selective. The brands that "win" aren't always flashy or have the biggest advertising

IEIrene ElliottApril 9, 20262 min read

Key Takeaways

  • Brands that position their products as justified self-care — not guilty indulgence — capture market share while competitors fight over shrinking budgets.
  • What Mid-Sized CPG Brands Should Learn This is the playbook mid-sized CPG brands should study.
  • When the economy gets uncertain, consumers don't stop spending...

When the economy gets uncertain, consumers don't stop spending... they get selective. The brands that "win" aren't always flashy or have the biggest advertising budgets — they're the ones that make people feel better in small, repeatable ways.

The Psychology of Selective Spending When people have to cut back, they still want to feel like they can indulge. They want upgrades that don't feel irresponsible. Value becomes emotional, not just financial.

Beauty is the perfect small indulgence. And e. l.

f. is the perfect example. The e.

l. f. Playbook In fiscal 2025, e.

l. f. reported 28% net sales growth and gained 190 basis points of U.

S. market share. That didn't happen by accident.

e. l. f.

built growth around a simple consumer truth: "Self-care feels like a smart decision when budgets are tight. " e. l.

f. built strong positioning — a brand that makes self-care feel justified, not indulgent. What Mid-Sized CPG Brands Should Learn This is the playbook mid-sized CPG brands should study.

In tough cycles, you don't win by shouting louder. You win by making your product easier to choose. Clear value.

The consumer immediately understands what they're getting and why it's worth it. Clear purpose. The product serves a specific emotional need beyond its functional use.

Clear reason it belongs in someone's routine. It's not a splurge — it's a smart decision. Summary When economic uncertainty drives consumers to cut back on major luxuries, the desire for indulgence migrates to small, repeatable rituals.

Brands that position their products as justified self-care — not guilty indulgence — capture market share while competitors fight over shrinking budgets. e. l.

f. 's 28% growth proves that clear value, clear purpose, and clear routine-fit are the winning formula in uncertain economies. --- Is your brand positioned as a smart choice or a guilty pleasure?

Let's find your leverage.

Frequently Asked Questions

Why is it that beauty wins in uncertain economies: the e.l.f. playbook for smart self-care?
When the economy gets uncertain, consumers don't stop spending...
What's the root cause behind this?
What Mid-Sized CPG Brands Should Learn This is the playbook mid-sized CPG brands should study.
What's the cost of ignoring this?
Brands that position their products as justified self-care — not guilty indulgence — capture market share while competitors fight over shrinking budgets.

If this resonated, we help growth-stage companies turn strategy into execution. Learn how a fractional CMO works or start a conversation.

IE
Irene Elliott

Irene Elliott is the founder and fractional CMO at i.e. With 15+ years scaling brands internationally and 200+ campaigns delivered, she brings senior marketing leadership to growth-stage companies without the full-time cost.