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    Breaking News

    U.S. Prestige Beauty Rises Due to Two Strong Categories

    The NPD Group reveals sales trends; advises brands to ‘react to changes quickly.’

    U.S. Prestige Beauty Rises Due to Two Strong Categories
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    08.08.19
    Amid talk of Makeup slowing, other categories remain on the rise. NPD reports that in the second quarter of 2019, sales of U.S. prestige beauty products were $4.3 billion—a 2% increase over Q2 2018. 
     
    “Total beauty performance in the second quarter was positive across most categories, with hair and skincare posting the strongest gains,” according to Larissa Jensen, beauty industry analyst, The NPD Group—and a member of Beauty Packaging’s Board of Advisors. “Fragrance, while positive, slowed its growth from earlier this year. Makeup was the only outlier, continuing to post declines that began during the first quarter of 2019.” Jensen says, “With this continued decline in makeup, and softening performance in fragrance, it is becoming increasingly important to identify trends leading to areas of growth in the beauty industry.”
     
    Here are some of NPD’s findings:
     
    Makeup ($1.7 billion in Q2 2019 sales; —4 % over Q2 2018)
    The consumer’s preference for a natural look continues to impact sales, with positive performance in tinted moisturizer and lip gloss, as well as steady performance from concealer and eyebrow makeup.
     
    Primers and setting sprays have been growth drivers in the makeup category (+78 percent and +6 percent, respectively). In short, areas of growth tend to be related to the extra steps and finishing touches, versus the core makeup categories.
     
    False eyelashes continued their positive growth trend, up +18 percent, a bright spot in an otherwise challenged makeup category.
     
    Skincare ($1.4 billion in Q2 2019 sales; +7 % over Q2 2018)
    As a category, skincare is still experiencing strong growth, up 7 percent. One skincare area showing signs of maturity is facial masks, which are in decline. Consumer interest in masks may be waning due to the number of skincare brands delivering advanced technology in core products and a potential desire to simplify their routines. Targeted treatments comprise many of the fastest growth segments in skincare, with growth in brighteners, acne treatments, and exfoliators all up over 15 percent.
     
    Fragrance ($834 million in Q2 2019 sales; +2 % over Q2 2018)
    Stronger concentrations are driving overall fragrance performance, with continued gains in eau de parfums (+8 percent) and perfumes (+31 percent).
    The introduction of men’s parfum concentrations is driving growth for men’s fragrances. In general, men want stronger and longer-lasting scents, and they are willing to pay a premium for them.
     
    Designer and artisanal fragrances continue to experience dollar growth; however, the allure and interest in artisanal is increasing (+12 percent) while interest in designer fragrances is softer (+2 percent).
     
    Hair ($217 million in Q2 2019 sales; +21 % over Q2 2018)
    Prestige haircare continues to grow in the double-digits driven by explosive growth happening in specialized treatment and color products, both up double-digits in dollars. It appears that consumers are more interested in the overall care and health of their hair versus spending on style aids.
     
    Other prestige haircare products such as bond-builders and leave-in treatments are up +41 percent year-over-year. 
     
    “We anticipate the second half of 2019 to experience growth across most categories, yet the makeup category will likely continue to struggle through the end of the year. As category performances ebb and flow, brands should consider that reacting to changes quickly will make their path to success easier,” added Jensen.
     
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