The NPD Group Presents 2011 Overview of U.S. and Global Beauty Sales at “Hot off the Press” Event in New York City

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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 2011 year-end results for skincare, makeup, and fragrance at their annual “Hot off the Press” event at the Plaza Hotel in New York City today.

“In the U.S., U.K., and China, prestige beauty is enjoying one of the most robust sales periods ever,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.

According to NPD, the total U.S. prestige beauty* industry showed an increase of 11 percent in dollar sales in 2011 vs. 2010.

Prestige Beauty Growth by Country: 2011 vs. 2010
Country    Dollar Percent Change
U.S.    +11%
France    +3%
U.K.    +9%
Italy     +1%
Spain    -1%
China    +22%
Mexico    +15%
Argentina    +33%
Sources: U.S., France, U.K., Italy, Spain: The NPD Group, Inc.
China: Based on Leader Panels in 10 Cities, 12 months ending Nov. ‘11
Mexico: Segmenta Projected Sell In/Sell Out
Argentina: Segmenta Projected Sell In/Sell Out

In 2011, skincare and fragrance sold in U.S. department stores both posted double-digit dollar growths of 14 and 11 percent respectively, while makeup grew a healthy nine percent, compared to 2010.

“In the U.S., U.K., and China, prestige beauty is enjoying one of the most robust sales periods ever,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “In the U.S., for example, beauty sales in both the mass and prestige channels were positive month after month in 2011. And while both channels were positive, prestige beauty reigned supreme. From the stellar increases in prestige skincare to the continued gains in makeup, to the double-digit rebound of fragrance, prestige beauty is experiencing a time of unprecedented growth.”

“In continental Europe,” Grant continued, “where the prestige market is more mature, growth is more tempered, and performance among the categories has not been as dynamic as in the U.S. or U.K., but nonetheless, prestige beauty managed to flourish thanks to brand media investment, bigger in-store animation, and price promotions.”

In addition, the U.S. Food/Drug/Mass** channel experienced a four percent increase in sales for total beauty in 2011, versus 2010. Makeup sales posted the biggest increase at eight percent, followed by skincare at three percent, while fragrance sales declined five percent in dollar sales, compared to 2010. In National Chain*** stores, fragrance sales grew five percent.

*Prestige Beauty: Products sold mainly in U.S. Department Stores.
**Food/Drug/Mass: SymphonyIRI Group, Inc.; Total U.S. FDM (excluding Walmart).
***National Chain: NPD BeautyTrends National Chain Fragrance.

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