The NPD Group has released data that shows the Canadian prestige beauty industry generated $2.2 billion in sales 2020, a 17% decline compared to the prior year.
Previously: Top 5 Beauty Industry Trends of 2020
However, the industry is starting to show signs of growth with year-over-year sales for the week ending March 13, 2021, increasing by 3%. This marks the first time the industry saw a positive weekly sales increase since the week ending November 21, 2020.
Online sales saw an increase of 56% in 2020 as the channel registered almost one third of all prestige beauty sales on the year compared to just 17% in 2019.
Makeup sales fell 33%. Skin care sales fell 9% in the same period, though its unit sales fell just 1% and remained Canada's top prestige beauty segment.
Fragrance sales declined 7%. Canada's prestige hair care grew 33% in 2020, outpacing the sector's growth in all other countries tracked by NPD.
Alecsandra Hancas, Canadian beauty industry analyst at The NPD Group, said: “As we head towards recovery, there is a great opportunity for brands and retailers to delight and surprise consumers and build loyalty both in-store and online. Recovery will vary by category, and while skin care and fragrance have shown positive signs, there are bright spots even within the struggling makeup category. Lipstick, just like going out, will make a comeback and we can’t wait.”
