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The global prestige beauty segment ended 2012 with mixed results, according to a report by The NPD Group, which showed that fragrance sales based on dollar volume fell in France, Italy and Spain but grew in the U.S. and the U.K.
“In fragrance, eau de parfums are outperforming in most geographies thanks to the strength of ‘couture’ designer brands," said Karen Grant, vice president and senior global industry analyst, The NPD Group. "In makeup, alternative brands join designer and makeup artist brands in expanding the offerings in foundations and in color categories, such as innovations in lip products. In skin care, new sub-categories are gaining importance as high-end innovation in devices make a mark, and there continues to be advancements in anti-aging, which is now offered with brightening and complexion solutions.”
Overall, prestige beauty in the U.S. reached $10.2 billion, a 7% gain.U.K. sales grew 5%, while France (the second largest market in the NPD report with sales of $3.5 billion) lost 1%. Sales in Italy were down 4%; Spain was down 7%.
By country, fragrance sales fell 1% in France, 3% in Italy and 6% in Spain, particularly pressured by challenging economic conditions. However, U.S. fragrance sales jumped 5% while U.K. fragrance sales rose 3%.
Annual 2012 growth in the U.S. was driven primarily by skin care (+10%), which amounted to $3.4 billion. Makeup had the second highest gains generating $3.8 billion in sales, with an 11% gain in the U.K., followed by fragrance at $2.9 billion globally.