The NPD Group released its tally on Thursday for 2011 sales in the U.S. prestige beauty market. As expected, the news was good.
American department stores generated a volume of $9.5 billion, an increase of 11 percent from 2010’s $8.6 billion figure.
“In the 15 years that NPD has been tracking the prestige beauty industry, we have never seen growth like this — especially across all categories,” said Karen Grant, vice president and senior global industry analyst at The NPD Group.
According to NPD, total prestige fragrance sales for 2011 generated $2.8 billion, up 11 percent from the year before. This represents the category’s strongest growth in both dollars and units in 15 years. Prestige scents (not including those considered ancillaries or sold within a gift set) increased 14 percent for both men’s and women’s, with 11 percent gains for women’s scents and 12 percent gains for men’s. Celebrity fragrances, especially women’s, performed exceedingly well — with gains of 57 percent. In addition, new fragrance launches accounted for 21 percent growth overall, a category driven by women’s introductions, which were up 33 percent.
Related Articles
You May Also Like
When it came to skin care, total sales for 2011 reached $3.1 billion, marking a 14 percent increase from the year before. All six skin care segments tracked by NPD showed gains: facial skin care was up 13 percent, sets and kits up 27 percent, body care up 2 percent, hair care up 16 percent and sun care up 11 percent. Antiaging skin care, which accounts for 63 percent of total prestige facial skin care, grew 17 percent since 2010, and generated $1.5 billion. Premium facial products — priced $75 and above — experienced a 21 percent dollar and 23 percent unit increase. Additionally, NPD revealed that products with both antiaging and brightening benefits have almost doubled in share in the past four years.
On the makeup front, the total prestige segment generated $3.6 billion, an increase of 9 percent since 2010. According to NPD, this marks the first time in 15 years that each makeup sub-category has grown in both dollars and units. Eye shadow is up 14 percent (its first increase since 2006), lip color grew 13 percent and the nail category — which showed the best performance in both dollars and units — is up a whopping 67 percent from 2010. Also of note: Most of the growth within prestige color cosmetics came from those with premium price points, which outperformed growth in overall prestige makeup.
“What is most intriguing about the acceleration in prestige beauty performance is the degree to which it stands in stark contrast to the overridingly lackluster consumer outlook,” said Grant. “Historically, prestige beauty performance followed the trend of consumer sentiments. However, that is not the case today.
“Though consumer confidence has inched back to the 2008 pre-recession levels, it remain quite shaky and is actually among the lowest levels the nation has experienced in the past 30 years. Yet, prestige beauty thrives. And although prestige beauty growth continues at both ends of the spectrum, it is the high-end, premium price points that experienced the strongest gains.”