Port Washington, NY (PRWEB) February 04, 2015
The U.S. prestige beauty* industry reached $11.2 billion and grew 3 percent in dollar sales in 2014, compared to 2013, according to global information company The NPD Group, Inc. Makeup experienced the healthiest gain, 6 percent, while fragrance dollars grew 2 percent and skincare increased by 1 percent.
The NPD Group presented the beauty industry’s first look at 2014 global year-end results for makeup, fragrance, and skincare at their 18th annual “Hot Off The Press” event at the Union League Club in New York on January 29. Cosmetic Executive Women Inc., (CEW), a leading professional organization in the beauty, cosmetics, fragrance and related industries, partnered to host the event for the third consecutive year.
“The beauty industry had a solid annual performance in a somewhat difficult retail environment, but there’s still plenty of room for improvement and development,” said Karen Grant, global beauty industry analyst, The NPD Group. “We saw that fewer consumers, especially beauty shoppers, cut spending in 2014. At the same time, 2014 reported the fewest number shopping for beauty in six years. This tells me that beauty shoppers are happy, but some may be seeking happiness elsewhere. This ‘elsewhere’ is in other products and services, as well as experiences; consumers today are not just pursuing ‘products for me,’ so much as they are seeking ‘experiences for us.’ The challenge for the beauty industry, therefore, doesn’t lie solely in the products, but in fulfilling this sense of experience, and having both play together in harmony.”
The prestige market outpaced the U.S. mass** channel, where sales remained flat for total beauty in 2014, versus 2013, as per Nielsen. The skincare category, with 2 percent growth, buoyed the overall market, while fragrance and makeup experienced dollar declines, by 4 percent and 1 percent, respectively.
“Beauty today is all about the base,” said Grant. “Understanding how the consumer base has changed in population and lifestyle. Each category reflects this dynamic. Before consumers apply their makeup, they want a soft, unblemished, anti-aging face. They want to feel confident about their ‘I woke up like this’ look, and are being proactive rather than reactive about their beauty choices. There continues to be growing popularity in products that are more organic and offer advanced benefits, from natural, clinical, and alternative brands to artisanal scents. While consumers look at craftsmanship and point of difference, they continue to seek instant gratification, from facial masks and bronzers that offer radiance, to bold lips and a mood-boosting scent.”
Prestige makeup, skincare, and fragrance in the U.S. all experienced 2 to 4 percent growth in average price. The lip segment was key to makeup’s growth, driven by lip color. Of the top 100 new shades on counter in 2014, pink surpassed red as the leading color, bringing in 23 percent more dollars. Sets and kits drove the growth for skincare, with anti-aging sets serving as the catalyst. Juices experienced the largest increase for women’s fragrance, while for men it was gift sets.
“Beauty is an industry where consumers are willing to spend, and where the majority of them—more than 80 percent of U.S. women alone—invest,” added Grant. “While there is brand loyalty, consumers at the same time are always on the hunt for products that will perform better, and are willing to add to their routine if a product proves worthwhile. The industry is at an advantage in the U.S., a crossroads, where world beauty comes together in one place, and the innovation and types of products that connect with consumers, and satisfy their needs and desires, show themselves in a natural light.”
Source: The NPD Group, Inc. / BeautyTrends®
*Prestige Beauty: Products sold mainly in U.S. Department Stores
**Source: Nielsen, Food/Drug/Mass
About The NPD Group, Inc.
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter:@npdgroup and @NPDstyle