Imagine you’re at the store looking for hand lotion. You spot two products side by side on the shelf. One is priced at $10, and the other is $8. They seem nearly identical — same brand and size — but there’s one noticeable difference: the more expensive product is pink and clearly labeled “for women,” while the other is in a neutral-colored bottle. The question that comes to mind is: Why is there a price difference?
What is the “Pink Tax”?
The pink tax refers to the extra amount of money that women often pay on products and services that are identical, or nearly identical, to products and services marketed to men. The “pink” in “pink tax” refers to the color scheme often used on products marketed towards women. This phenomenon has roots dating back to the 1920s.
While many readers may be familiar with the pink tax and how it impacts consumer goods, this pricing disparity also extends to services.
Is the Pink Tax Actually Real?
In 2015, the New York City Department of Consumer Affairs (DCA) shared its study analyzing gender pricing. Researchers analyzed 794 products across 35 categories, 91 brands, 24 stores, and five industries. Here’s what they found:
- Women’s products cost more 42% of the time, while men’s products cost more 18% of the time.
- In 30 of the 35 categories, products for women were priced higher than those for men.
- Women’s personal care products cost more 56% of the time, while men’s products cost more 13% of the time.
- Women were effectively paying a “gender tax” of approximately $1,351 per year for the same services as men.
So, fast forward to today. Has anything changed?
In a 2024 study analyzing the personal care industry, researchers found that the pink tax continues to be a “pervasive issue” and contributes to economic disparities and reinforced gender stereotypes.
In a more recent 2020 study, the California Senate Committee on Judiciary and Senate Select Committee on Women, Work & Families found that women in California pay, on average, $2,381 more per year for the same products and services.
There are other ways the pink tax impacts women, not just with higher-priced products. Consider this passage from the 2022 study, “The Pink Tax on Mobility: Opportunities for Innovation”:
“Women are three times as likely to be concerned for their safety on shared modes of transit, and as a result, choose longer, more costly, or less efficient transportation options. The physical and psychological impact of gender-based trauma can result in lifelong preferences for cars or taxis instead of transit or bikes. Moreover, 61% of caregivers are women; escorting children or the elderly further reduces travel options and adds costs.”
How the Pink Tax Impacts Women’s Health
While the term “pink tax” may make most consumers think about razors, shampoos, and clothing, its influence extends to health-related products and services.
In one study, Deloitte found that out-of-pocket healthcare costs for employed women in the U.S. were estimated to be $15 billion (yes, billion) higher than the cost for employed men. Some of the reasoning behind this was that women, in general, tend to seek medical advice more frequently than men, which contributes to higher costs. Certain procedures, like gynecological exams or breast cancer screening, tend to be more expensive than other examinations. The team behind Deloitte’s study also looked into how benefits were designed, stating,
“Our findings suggest that health insurance products may inadvertently create an income gap for working women, compounding the effects of the well-documented gender wage disparity, where women earn approximately $0.82 for every dollar earned by men…This dual burden of elevated health care expenditures and the gender wage gap may force employed women into difficult choices between necessary care and affordability.”
Why Does the Pink Tax Exist?
Part of the reason why the pink tax exists is due to the differentiation in tariffs for men’s versus women’s products. Dubbed the “pink tariff,” U.S. tariffs on women’s clothes are around 3% higher than the average tariff on men’s clothes, for example. This additional cost trickles down to the end consumer.
When it comes to personal products and toiletries, one thought is that the higher cost of marketing towards women results in higher product costs. Given the many different products and intense competition in the industry, part of the pink tax may be because the higher marketing spend is built into the price.
Then there’s the concept of price elasticity, or how demand for a product changes when the price changes. If a product or service is considered to be more “elastic,” this means consumers will continue to purchase regardless of whether the price goes up or down. Research suggests that women are willing to pay more for certain products, such as personal care.
Of course, we also need to consider whether the two products — the one geared towards women and the one for men — are exactly the same. In some cases, there may be differences in ingredients, size, and benefits.
Can We Ever Get Rid of the Pink Tax?
Ultimately, like many other systemic issues, solving the “pink tax” issue is complex, as there are a number of factors mentioned above — tariffs, demand, product differentiation, and so on. As researchers in the 2024 study point out, “Collaboration among policymakers, businesses, and consumers is essential to rectify the economic disparities caused by the Pink Tax.”
The Pink Tax Repeal Act, a 2016 bill in the U.S., aimed to outlaw the pink tax on consumer products and services. While it failed to go through Congress, it shed light on the need for gender-equal pricing. A new version of the bill was announced in 2018 which, again, did not pass. Recently, the bipartisan bill was reintroduced again in 2021, but at the time of writing, The Pink Tax Repeal Act has yet to be approved. However, individual states have taken action. For instance, California’s Gender Tax Repeal Act focused less on the pink tax and more on gender-based price discrimination. It was passed in 2001.
Consumer awareness is another major factor. With public platforms like social media, speaking out against the pink tax can help promote more equitable pricing. Another solution is to vote with your wallet. It’s not uncommon to come across social media users ditching subpar women’s products in favor of cheaper, higher-quality men’s products. Take this Reddit thread where users discussed women’s versus men’s razors.
Although the pink tax remains an ongoing issue, every effort — whether through advocacy, legislation, or mindful consumer choices — contributes to a broader push for gender equity.