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Report Shows Prestige Beauty Products Hit By Economy
Posted: September 2, 2009
A new report on the first half of 2009 from the NPD Group shows the toll the recesion has taken on prestige beauty products, breaking out information on skin care, fragrance and makeup sales.
The NPD Group, Inc., a leading market research company, reports first half—January through June—2009 retail sales of U.S. prestige beauty industry, which consisted mostly of products sold in U.S deparment stores, equaled $3.7 billion, an overall dollar decline of 7% versus first half 2008. June 2009 brought the 11th consecutive month of negative prestige beauty performance. Fragrance, makeup and skin care contributed to the dollar decline. While sales struggled overall, there were some positives in each category.
Prestige fragrances in the U.S. posted the steepest loss in first half 2009, declining 10% in dollars versus first half 2008. Women’s and men’s prestige fragrances both posted 10% declines from a year ago.
New fragrance launch sales generated $57 million in first half 2009, but dropped 17% from the prior year, due to the decline in women’s new launch activity (-31%) when compared to the performance of 2008 launches. On the other hand, men’s new launch activity was up 23%.