The concept that food is the new protagonist of the “Lipstick Effect”
The concept that food is the new protagonist of the “Lipstick Effect” represents one of the most interesting developments in modern consumer psychology.
What is the “Lipstick Effect”?
Traditionally, this economic theory suggests that, during periods of recession or financial uncertainty, consumers forgo large investments (houses, cars, luxury vacations) but increase spending on small, affordable luxuries.
Lipstick: In the 1930s and after 9/11, cosmetics sales skyrocketed. It was an affordable way to feel good without breaking the bank.
The New Era: Today, lipstick has given way to “Premium Food”.
Why is Food the new “Lipstick”?
Today, seeking a small respite from the daily grind and mounting worries about the future, more and more people treat themselves to a taste experience. Food has become the fastest, most affordable, and most effective way to purchase a moment of happiness.
Food has thus ceased to be pure nutrition and has become a form of entertainment and social status. Here are the pillars of this transformation:
1. Democratic Luxury
While buying a luxury handbag or a premium watch is prohibitively expensive, purchasing an €8 single-origin chocolate bar, an award-winning extra virgin olive oil, or a signature cocktail is a possible luxury. Consumers perceive a high experiential value at a reasonable price.
This effect can also be found within the food industry itself: if dining at Cracco is prohibitively expensive, having a coffee at his place in the Galleria Vittorio Emanuele offers a taste of that experience that is affordable and rewarding, so the value of that coffee is beyond comparison with the one you get at the bar down the street.
2. Emotional Comfort and Self-Care
In times of stress, food activates instant gratification circuits. Preparing a gourmet dish at home or treating yourself to the “hottest brunch of the moment” is seen as an act of self-care, a brief escape from everyday reality, a sign of belonging to a certain community.
3. Social Currency (Instagrammability)
Food has become the primary vehicle for communicating one’s identity and taste. A photo of a cappuccino at the counter of a famous café, a beautifully crafted dish—or sometimes intentionally “overdone” because it was just eaten—or a rare ingredient just purchased—are gratifying shots that can be instantly shared with thousands of people.
Implications for Marketing
Companies that want to ride this trend will need to move from selling simple foods/ingredients to offering true “minimal experiences.” There are three strategic levers:
Premiumization
Elevate everyday products (e.g., chips, coffee, butter) through refined packaging and ingredient storytelling.
Limited Edition
Creating a sense of urgency and rarity (like the streetwear “drop” – the limited, scheduled release of new versions of products at fixed times).
Origin Narrative
Focus on ethics, sustainability, and craftsmanship to justify the premium price.
1. When did the phenomenon begin?
The growth of food’s role as a “lipstick effect” did not happen in a single day, but followed three fundamental stages:
2008-2010 (The Transition)
During the Great Recession, the artisanal food sector began to grow. It was the era of the birth of the “foodie”: high-quality coffee and sourdough bread became the first symbols of accessible status.
2020-2022 (The Acceleration)
The pandemic has been a watershed moment. Consumers have shifted their luxury budgets almost entirely to premium home shopping: truffles, rare oils, and DIY Michelin-starred dinner kits. Food has become the primary form of psychological escape.
2023-Today (The Consolidation)
With post-pandemic inflation and the cost of living crisis, owning a luxury home or car has become utopian for many Millennials and Gen Z. As a result, “Food-Luxxing” (indulging in luxury food) has become the norm: you save on rent or clothing, but you don’t give up that €8 matcha latte or €12 chocolate bar.
2. Future Evolution: What awaits us?
“Food-Status” becomes Functional
It will no longer be enough for food to be “expensive” or “good.” The new affordable luxury will be linked to longevity and cognitive well-being. The phenomenon is already underway, but we will see an explosion of “bio-hacking” products (e.g., drinks with adaptogens or medicinal mushrooms) sold as luxury goods. The message will be: “I can’t afford a golden private health insurance plan, but I can afford the superfood that makes me live better.”
Hyper-personalization through AI
Marketing will use artificial intelligence to create “tailored luxury experiences.” We’ll see subscriptions to snacks or rare ingredients tailored to one’s genetic or biological profile. A “little luxury” will become a curated, almost scientific experience.
The return to “Nostalgia Premium”
In an increasingly uncertain and digitalized world, the future will see the triumph of reinterpreted classics. We will see humble products (like bread, butter, or preserves) transformed into objects of extreme design. Luxury will be “perfect simplicity”: a return to origins, but with a narrative and packaging worthy of fine jewelry.
“Phygital” Experientiality
Food will evolve into mini-physical experiences. Brands will open more and more micro-boutiques (not restaurants, but small temples of a single product) where the purchase of a single piece of chocolate or a coffee becomes a sacred ritual, similar to purchasing a piece of jewelry on Via Condotti or Via Montenapoleone.
In short: Premium food today serves to make us feel good internally, to gratify us, and to communicate our values to the outside world. In the future, food will be less about nutrition and more about self-care.
Possible Margins and Potential for some categories
Finally, what is the secret to success in these sectors?
Packaging. In the new “Food-Lipstick Effect,” packaging must match the intangible value sought in the product: if so, consumers stop comparing price per kilo and start evaluating the value of the experience.
