NPD Reports on Holiday Beauty Gift Sets: It’s Not Just About Fragrance Anymore Makeup, Skincare, and Fragrance All Head into Holiday with Double-Digit Growth

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The NPD Group, Inc., a leading market research company, released results on the total prestige beauty gift set industry. In the U.S., overall gift set sales within prestige department stores year-to-date (January to October 2012), posted a +16 percent increase in dollar sales, versus the same time last year. The $871 million beauty gift set industry includes women’s and men’s fragrance gift sets, as well as skincare and makeup gift sets.

"Gift sets have often provided a somewhat stress-free purchase for the shopper to get in and out of the madness that surrounds shopping during the holiday season,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.

“Gift sets have often provided a somewhat stress-free purchase for the shopper to get in and out of the madness that surrounds shopping during the holiday season,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “And it’s not just fragrance anymore, sets are now among the hottest areas in makeup and skincare too,” added Grant.

Fragrance sets continue to be the ‘go-to’ gift set for the holiday season, and represent over one third (34%) of total prestige fragrance sales annually. While men’s and women’s fragrance gift sets both posted healthy growth, the category was strongly driven by men’s fragrance gift sets (+14%), double the dollar growth of women’s (7%) during year-to-date 2012.

Heading into this holiday, makeup and skincare gift sets have already outpaced the overall gift set market in the first ten months of the year. NPD consumer studies indicate there is some shift in the preference amongst ethnic and younger consumers (18-24 years old) in makeup towards shopping in stores that offer kits. Makeup artists and alternative brands, especially those associated with younger consumers, are experiencing tremendous growth in makeup sets.

Consumers continue to take advantage of the gift set season, especially in skincare. “High-priced, anti-aging skincare gift sets are not the only option anymore, consumers today are looking to treat themselves with innovative forms of skincare more so than in recent years. This season the skincare gift set arena is again being dominated by new sonic technology,” said Grant.

“Today sets are not just about value. They are treasures that are hard to resist and worth the investment. Whatever the category, gift sets look quite promising this holiday season – offering one-stop shopping, all-in-one, for that special person – whether that is you or someone in your life – who wants it all - to look good, feel great and smell wonderful.”

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