In 2010, prestige beauty saw a quick recovery in skincare, followed by a gradual upturn in makeup, and finally, a late-year rally in fragrance.
Port Washington, New York (Vocus/PRWEB) March 01, 2011
According to beauty market research conducted by The NPD Group, Inc., a leading market research company, in 2010, total U.S. prestige beauty generated $8.4 billion, an increase of 4 percent in dollars, compared to $8.19 billion in 2009.
U.S. 2010 Prestige Beauty* Industry
Categories 2010 Dollars % Change 2010
vs. 2009 % Change 2009 vs. 2008
Total Beauty $8.4 Billion 4% -6%
Total Fragrance $2.5 Billion 1% -10%
Total Skincare $2.7 Billion 8% -4%
Total Makeup $3.2 Billion 3% -5%
Source: The NPD Group / BeautyTrends®
Prestige fragrances experienced dollar sales that posted their first annual gain since 2006, dollars grew +1 percent, versus 2009. Juices** grew 4 percent for both men and women, which helped drive the overall performance of +1 percent for both. Fragrances launches were up +3 percent, driven by men’s fragrance launches, which grew +10 percent. Gift sets, which have traditionally been the better performing segment in prestige fragrance, declined in both the women’s (-1%) and men’s (-5%) market.
Prestige skincare proved yet again to be the strongest performer among the three prestige beauty categories. Skincare not only gained back what it had lost during the recession, but the category also surpassed pre-recession levels.
*Prestige Beauty: fragrance, makeup, and skincare products sold mainly in U.S. Dept. stores.
**Juices: excludes fragrance ancillary or gift set items.
Launches, which grew +30 percent were a major contributor to the total prestige skincare increases, as well as anti-aging products, which grew +12 percent. Premium face products, ($75 and above), experienced a +7 percent dollar increase from 2009.
It was the first time in two years that prestige makeup experienced category growth. Fueled by the double-digit growth of offerings from primers to anti-aging face products, to rich color options in lip and nail, five of the six segments within makeup posted growth. Three segments either met or outpaced category growth: Face (+3%), Lip (+3%), Nail (+39%). Eye (+2%) and Other Color (+1%) grew, but slightly behind the category. Gift sets declined in dollars, but had a unit growth of +3 percent.
“In 2010, prestige beauty saw a quick recovery in skincare, followed by a gradual upturn in makeup, and finally, a late-year rally in fragrance,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “Individually and collectively, as an industry, we saw adroitly and strategically deployed initiatives in product, placement, and pricing that worked to re-engage consumers in prestige, both in stores and online. It is the type of multi-pronged and multi-faceted action that will be key to driving the prestige beauty market in 2011”, ended Grant.
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