The turn of a new year gives us the perfect chance to give a complete review of the previous one, and market analyst NPD Group has announced that 2012 was a strong one for the US prestige beauty industry, despite facing a number of challenges.
Speaking at the annual ‘Hot off the Press’ event in New York, senior analyst Karen Grant presented the 2012 year-end results for skin care, makeup, and fragrance; which showed an increase of seven percent in dollar sales in 2012 vs. 2011.
Robust sales period
“Coming off the wave of 2011, one of the most robust sales periods in over a decade for the beauty industry, 2012 has shown some great highs, along with some modest lows,” said Karen Grant, vice president, NPD.
“Even though consumer confidence continues to waver, there is momentum at both ends of the price and product spectrum. In 2012, along with smaller categories in beauty, we are seeing investment spending on premium-priced make-up, skin care, fragrance, as well as premium-priced sets, which lead in growth once again.”
The industry expert explains that even in Europe, where the economic environment is more challenging, the major premium-priced category, fragrance, was positive.
“Premium-priced products remain one of the brightest spots in beauty and will continue to carve out market share across all categories and geographies in the New Year,” she adds.
All of the US prestige beauty categories posted healthy growth, with prestige skin care generating the largest growth at 10 percent, followed by make-up at seven percent and fragrance at five percent.
“In the US, although we have seen some tempering in sales performance, compared to 2011, growth remains positive for both the prestige and mass channels. The trend of prestige beauty outpacing mass beauty continues to be evident since the recessionary period of 2009 and will likely continue into 2013,” ends Grant.