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    Beauty Buzz

    U.S. Prestige Beauty Industry Sales Grow

    ...

    U.S. Prestige Beauty Industry Sales Grow
    The number of consumers using makeup reached 67% in 2018.
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    03.06.19

    The U.S. prestige beauty industry reached $18.8 billion in 2018, a 6% sales increase over 2017, according to The NPD Group. The skincare category grew by 13% and contributed 60% of the industry’s total gains; makeup, the industry’s largest category based on sales, grew 1%, while fragrance closed the year up 4%. Hair was the smallest yet fastest growing category, with a 25% increase in sales.

    “If I had to use one word to characterize the state of the U.S. beauty industry today, it would be disruption. Whether we look at categories, brands, or retailers, there are sweeping changes taking place to the market landscape,” said Larissa Jensen, executive director and beauty industry analyst at The NPD Group—and a member of Beauty Packaging’s Board of Advisors.

    Skincare sales were $5.6 billion for the year, and natural brands remain a top contributor to growth. Natural skincare accounted for $1.6 billion or more than one-quarter of annual sales, up 23% versus last year. 

    Makeup sales reached $8.1 billion in 2018, and though it experienced soft growth, the category holds promise, as the number of consumers using makeup reached 67% in 2018–an increase of 6 percentage points over two years ago.

    Fragrance sales totaled $4.3 billion; artisanal fragrance was the fastest growing aspect of the market.

    “Given the high adaptability of the beauty industry, I expect growth to continue in 2019, though it may be at a slower pace given the current economic uncertainties,” said Jensen. 
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