About 25% of prestige beauty units sold in the United States are sold on promotion, per a new research note from The NPD Group's Larissa Jensen. That's lower than pre-pandemic (2019) levels.
Even better, the beauty sector's reduced use of promotions hasn't hurt growth in revenue or unit sales.
Jensen adds that the sector has been propelled by premiumization in hair and fragrance, as detailed in Q3 prestige beauty results.
Q3 2022 U.S. prestige beauty sales revenue totaled $6 billion, a 15% increase compared to the same period of 2021, per The NPD Group.
At the time of the results' announcement, Jensen noted, “Unit sales and revenue are both growing by double digits for beauty products sold in the prestige market, indicating that consumers are indulging in beauty products this year. Fragrance sales will grow this holiday season, albeit slower than in years past, and makeup, skin care and hair care should also shine during the holidays, maintaining the strong sales performance these categories have experienced so far this year.”
In her latest research note, Jensen warns that promotional levels in 2023 could escalate again if shoppers experience category fatigue or overindulgence.