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The NPD Group, Inc., a leading market research company, presents the U.S. and global beauty industry's first look at 2010 year-end results for skin care, makeup, and fragrance at their annual "Hot off the Press" event at the Plaza Hotel in New York City this week. According to NPD, the total U.S. prestige beauty* industry showed an increase of 4% in dollar sales in 2010 vs. 2009, after two consecutive years of decline.
In 2010, all the U.S. prestige beauty categories experienced dollar growth as opposed to 2009, where all the categories, including the total prestige industry declined. Prestige skin care posted the biggest increase, followed by prestige makeup, and prestige fragrance.
"What a difference a year makes! If there were any doubts of the continued appeal of prestige beauty products and the tenacity of the beauty industry after the declines of 2009, then 2010 provided a loud, clear, and most encouraging answer," says Karen Grant, vice president and senior global industry analyst, The NPD Group. "Prestige beauty saw the quick recovery of skin care, which by June, had surpassed pre-recession levels. This was followed by the gradual upturn in makeup, and finally, a late year rally in fragrance. Prestige beauty is well positioned for a positive year in 2011," ended Grant.
It was a good year for the Food/Drug/Mass** channel as well. The channel experienced a 3% sales growth in 2010, versus a flat 2009. Makeup sales posted the biggest increase, followed by skin care, while fragrance sales declined slightly by -1%. Fragrance sales in the National Chain*** chain, declined by -1% in dollar sales as well.