According to NPD, a global information company, the total U.S. prestige beauty* industry showed an increase of 7% in dollar sales in 2012 vs. 2011.
“Coming off the wave of 2011, one of the most robust sales periods in over a decade for the beauty industry, 2012 has shown some great highs, along with some modest lows,” says Karen Grant, vice president and senior global industry analyst, The NPD Group.
All of the U.S. prestige beauty categories posted healthy growth. Prestige skin care sold in U.S. department stores generated the largest growth at 10%, followed by makeup at 7% and fragrance at 5%, compared to 2011.
“Even though consumer confidence continues to waver, there is momentum at both ends of the price and product spectrum. In 2012, along with smaller categories in beauty, we are seeing investment spending on premium-priced makeup, skin care, fragrance, as well as premium-priced sets, which lead in growth once again. Even in Europe, where the economic environment is more challenging, the major premium-priced category, fragrance, was positive. Premium-priced products remain one of the brightest spots in beauty and will continue to carve out market share across all categories and geographies in the New Year,” says Grant.
“In the U.S., although we have seen some tempering in sales performance, compared to 2011, growth remains positive for both the prestige and mass channels. The trend of prestige beauty outpacing mass beauty continues to be evident since the recessionary period of 2009 and will likely continue into 2013,” ended Grant.
*Prestige Beauty: Products sold mainly in U.S. department stores.