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The Canadian Beauty Industry Takes the Lead as the Country's Fastest Growing Industry in the First Half of 2022


News provided by

The NPD Group

Sep 23, 2022, 19:45 ET

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According to The NPD Group, which recently merged with Information Resources, Inc. (IRI®), to create a leading global technology, analytics and data provider, the Canadian Beauty industry was Canada's fastest growing industry in the first half of 2022 with sales fully recovering back to 2019 levels. According to NPD, Beauty products sold within prestige beauty retail channels increased +32% or +$351M to $1.4B for January – June 2022 vs. LY. Unit sales increased +29% and the average selling price increased by 2% vs. last year.

TORONTO, Sept. 23, 2022 /PRNewswire-PRWeb/ -- According to The NPD Group, which recently merged with Information Resources, Inc. (IRI®), to create a leading global technology, analytics and data provider, the Canadian Beauty industry was Canada's fastest growing industry in the first half of 2022 with sales fully recovering back to 2019 levels. According to NPD, Beauty products sold within prestige beauty retail channels increased +32% or +$351M to $1.4B for January – June 2022 vs. LY. Unit sales increased +29% and the average selling price increased by 2% vs. last year.

"Consumer lifestyle shifts continue to impact beauty spending behavior," said Alecsandra Hancas, Canadian Beauty Industry Analyst at The NPD Group. "In the first half of 2022, fragrance eau de parfum, hair and makeup foundation were among the top dollar gainers, as consumers began to resume activities, travel and events, and shopping shifted from online back to in-store."

“Consumer lifestyle shifts continue to impact beauty spending behavior,” said Alecsandra Hancas, Canadian Beauty Industry Analyst at The NPD Group.

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Brick and mortar sales grew +52% for January – June 2022 and accounted for 100% of total gains in the first half of 2022. Growth was driven by makeup which was the fastest growing category contributing nearly half (or 42%) of total gains in the first half vs. last year.

Prestige makeup was the most challenged category during the first half of 2022 and has yet to reach recovery vs. 2019. However, as consumer needs continue to change, so too does their makeup routines. "We are seeing positive momentum with segments such as mascara, blush, tinted moisturizer and concealer," says Hancas. "Each of these segments have now fully recovered vs. 2019 and are driving growth YTD."

Despite the shift to in-store, online sales remain elevated compared to pre-pandemic levels. As we approach the key holiday shopping season, the Canadian beauty industry will undoubtedly be positively impacted by a more developed e-commerce channel. Categories that have traditionally fared well online are expected to continue to drive growth for the industry. For example, hair product sales grew +36% year over year, making the category 3x more important than it was pre-pandemic. The hair category alone has driven $25M in incremental online sales YTD. Digital and social media will continue to drive this trend as consumers are enticed to explore new brands and test new products to get the best results at home and in-between salon visits.

Source: *The NPD Group/Canada Beauty Trends, dollar sales, January – June 2022

Media Contact

Erick Bauer, The NPD Group, 416-587-4185, [email protected]

SOURCE The NPD Group

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