07.30.21
Beauty consumers are getting back into the swing of things. According to just released research from The NPD Group, in the second quarter of 2021, sales of U.S. prestige beauty products were nearly $4.9 billion, a 66% increase over Q2 2020. When comparing the overall increase in sales to 2019—a year that was more normalized pre-pandemic—the increase was 6%.
As expected, growth figures were especially high, compared to pandemic sales. Makeup sales led in led in Q2, at $1.7 billion, a dramatic uptick of +71%. Skincare sales scored $1.5 billion, up +32%; Fragrance rose to $1.3 billion, a triple-digit rise of +123%; and Hair grew to $346 million, +70%.
According to Larissa Jensen, beauty industry advisor, The NPD Group—and a member of Beauty Packaging’s Board of Advisors—“There are many positive markers emerging in the second quarter of this year that point to an industry in full recovery mode. Among the most important is that makeup, the largest category in beauty, is showing signs of life, with a growth rate and dollar gains more than double skincare. Fragrance continues to blaze a new path forward, with unprecedented performance, not only compared to 2020, but also 2019. Each trend is an acceleration of what we observed at the beginning of the year and indicative of a changing consumer mindset, as restrictions ease and life as we knew it returns. Maintaining this momentum is the industry’s call-to-action, as we head into the back half of the year.”
Brick-and-Mortar Versus Online Sales
Jensen also says, “The brick-and-mortar versus online sales pendulum has once again swung to brick-and-mortar sales, as the market begins to right-size after the physical store closures and spike in online sales during the second quarter of last year.” As a result of this normalization, in-store purchases rose 284% over the same time a year ago, while online sales declined by 19%.
As expected, growth figures were especially high, compared to pandemic sales. Makeup sales led in led in Q2, at $1.7 billion, a dramatic uptick of +71%. Skincare sales scored $1.5 billion, up +32%; Fragrance rose to $1.3 billion, a triple-digit rise of +123%; and Hair grew to $346 million, +70%.
According to Larissa Jensen, beauty industry advisor, The NPD Group—and a member of Beauty Packaging’s Board of Advisors—“There are many positive markers emerging in the second quarter of this year that point to an industry in full recovery mode. Among the most important is that makeup, the largest category in beauty, is showing signs of life, with a growth rate and dollar gains more than double skincare. Fragrance continues to blaze a new path forward, with unprecedented performance, not only compared to 2020, but also 2019. Each trend is an acceleration of what we observed at the beginning of the year and indicative of a changing consumer mindset, as restrictions ease and life as we knew it returns. Maintaining this momentum is the industry’s call-to-action, as we head into the back half of the year.”
Brick-and-Mortar Versus Online Sales
Jensen also says, “The brick-and-mortar versus online sales pendulum has once again swung to brick-and-mortar sales, as the market begins to right-size after the physical store closures and spike in online sales during the second quarter of last year.” As a result of this normalization, in-store purchases rose 284% over the same time a year ago, while online sales declined by 19%.
