UK health & beauty specialists are struggling to compete with low-priced discounters, as consumers are not recognizing the additional value for money that comes from their better ranges, product quality, and service. With personal finances still recovering from the impact of inflationary pressure, consumers still prefer to shop at discounters for essentials, according to GlobalData, a leading data and analytics company.

GlobalData’s latest monthly UK consumer survey for June 2025* reveals that 88% of Savers’ shoppers ranked the discounter between seven and 10 in value for money, and 86% stated the same for Home Bargains. Only 73% of Boots’ shoppers rated the specialist the same, highlighting the health & beauty specialist’s weaker value for money credentials.

Tash Van Boxel, Retail Analyst at GlobalData, comments: “The lower price points on essentials elevate consumers’ perceptions of value retailers, as consumers see less worth in splashing out on categories such as dentalcare and toiletries. Consumers are stocking up on necessities at discounters as they are less concerned about having a wide range of products to choose from and instead prioritise low prices.”

Boots is the clear market leader in the sector, holding a 20% share of the UK health & beauty market in 2024, according to GlobalData. The health & beauty specialist’s dominance is driven by its expansive store estate, boasting approximately 1,800 stores across the UK. However, despite its popularity, Boots is not rated highly for value for money, ranking 20^th among health & beauty retailers.

Van Boxel continues: “Fewer shoppers rate Boots as being good value for money, indicating that other factors are driving sales. Broad product ranges and convenience will be Boots’ saving grace. However, the health & beauty specialist should focus on improving its value for money perceptions, given that inflation is anticipated to peak soon and consumers will remain price sensitive into the next year. For Boots, highlighting its members’ pricing and permanent 10% discount on its brand labels available through its loyalty scheme will be key in improving shopper’s perceptions.”

Gen-Z consumers buck the trend when it comes to assessing value for money, with half of this generation perceiving high-quality ingredients as the most significant indicator of value. As consumers educate themselves about the efficacy of ingredients, brands and retailers must be more transparent about product’s ingredient composition.

Van Boxel concludes: “Health & beauty specialists must target younger shoppers who prioritise high-quality ingredients over price. Younger consumers are willing to invest in health & beauty items that contain high concentrations of ingredients they desire, such as niacinamide and retinol. This focus will allow the specialists to retain their pricing architectures and compete with discounters based on product ranges rather than price points.”

*GlobalData’s June 2025 monthly consumer survey consisted of 2,000 respondents in the UK