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U.S. Prestige Beauty Industry Generates $18.8 Billion in Sales for 2019, Driven by Skincare, Reports The NPD Group
  • USA - English

Makeup usage declined as skincare held the spotlight, but the next pendulum swing may be on the horizon


News provided by

The NPD Group

Feb 03, 2020, 15:55 ET

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PORT WASHINGTON, N.Y., Feb. 3, 2020 /PRNewswire-PRWeb/ -- The U.S. prestige beauty industry generated $18.8 billion in sales during 2019, according to The NPD Group. Total sales remained flat over 2018 on account of a 7% decline in makeup, while skincare (+5%), fragrance (+2%), and hair (+16%) all experienced growth.

The $7.6 billion makeup category still represents the largest share of beauty sales, but as skincare continues to grow the share gap between the two categories is narrowing. A key factor contributing to makeup's annual performance is the overall decline in makeup usage. According to The Changing Face of Makeup, NPD's latest report in conjunction with CivicScience, nearly one-quarter of women in the U.S. are using much/somewhat less makeup today. The findings show that casualization is factoring into this, with more women working from home and also embracing a more natural look.

"'Natural' is a big buzz word in many industries, especially beauty – in terms of product ingredients as well as consumers looking to achieve a more natural look. How makeup responds to this movement will be key to its revival," said Larissa Jensen, vice president and beauty industry advisor, The NPD Group. "Historically, NPD data has detected a shift between makeup and skincare every four to five years. Based on this, and the slowdown in makeup that began to take hold in 2017, I anticipate we'll see makeup rebound in the next one to two years."

Skincare brought in $5.9 billion for the year, and natural was the top growth contributor. Natural brands represented 30% of total skincare and sales grew by 14% over 2018. Looking at specific segments of the market, staples such as cleansers and moisturizers grew and more targeted treatments were among the top performers, including acne treatments, brighteners, exfoliators, and lip treatments.

Fragrance sales totaled $4.5 billion and this was propelled by the growth in stronger concentrations – perfumes (+49%) and eau de parfums (+9%). While artisanal fragrances continued to grow at the fastest rate, it is the success of top ranked designer brands that captured the largest share of category sales, which has driven the sales performance.

"My one word to characterize the beauty industry in 2019 was 'disruption;' my word for 2020 is 'connection' – not in terms of technology and devices, but the human connection we have to each other, to brands, and to the environment," said Jensen. "As topics such as transparency and sustainability become more mainstream, consumers are putting the social and environmental impacts of their purchase decisions front and center, and brands will need to act accordingly."

Source: The NPD Group / U.S. Prestige Beauty Total Measured Market, January-December 2019

***
About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 29 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, video games, and watches. For more information, visit npd.com. Follow us on Twitter: @npdbeauty.

SOURCE The NPD Group

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