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Prestige Beauty Sees Increase of 4% in 2010
Posted: March 1, 2011
According to beauty market research conducted by The NPD Group, Inc., in 2010, total U.S. prestige beauty generated $8.4 billion, an increase of 4%, compared to $8.19 billion in 2009.
Prestige fragrances experienced dollar sales that posted their first annual gain since 2006, dollars grew 1%, versus 2009. Juices, which excludes fragrance ancillary or gift set items, grew 4% for both men and women, helping to drive the overall performance of 1% for both. Fragrances launches were up 3%, driven by men's fragrance launches, which grew 10%. Gift sets, which have traditionally been the better performing segment in prestige fragrance, however, declined in both the women's (-1%) and men's (-5%) market.
Prestige skin care
Prestige skin care proved yet again to be the strongest performer among the three prestige beauty categories. It not only gained back what it had lost during the recession, but the category also surpassed pre-recession levels. Launches, which grew 30%, were a major contributor to the total prestige skin care increases, as well as anti-aging products, which grew 12%. Premium face products, ($75 and above), experienced a 7% dollar increase from 2009.
It was the first time in two years that prestige makeup experienced category growth. Fueled by the double-digit growth of offerings from primers to anti-aging face products, to rich color options in lip and nail, five of the six segments within makeup posted growth. Three segments either met or outpaced category growth: face (3%), lip (3%) and nail (39%). The eye (2%) and other color (1%) segments grew, but slightly behind the category. Gift sets declined in dollars, but had a unit growth of 3%.
"In 2010, prestige beauty saw a quick recovery in skin care, followed by a gradual upturn in makeup, and finally, a late-year rally in fragrance," said Karen Grant, vice president and senior global industry analyst, The NPD Group. "Individually and collectively, as an industry, we saw adroitly and strategically deployed initiatives in product, placement and pricing that worked to re-engage consumers in prestige, both in stores and online. It is the type of multipronged and multifaceted action that will be key to driving the prestige beauty market in 2011.”