Although hair care products in this distribution channel represent a small segment of the total prestige beauty industry - less than 5 percent according to NPD – dollar sales increased 5 percent in the five-month period from January to May 2010.
In particular, the styling/mousse and conditioner sub segments witnessed double-digit growth, with the former increasing 34 percent in dollars and the latter growing 12 percent.
“The growth in styling and mousse products, as well as conditioners, is the latest evolution in what appears to be a growing trend in hair care products sold in the department store channel,” said NPD vice president Karen Grant.
NPD noted that the growth in dollar sales has been increasing each month, suggesting the trend is set to continue in the future. Indeed, the company recently predicted the market for prestige beauty products in general will begin to recover in 2010 after a difficult 2009.
Prestige beauty sales fell in 2009
NPD tracks the prestige fragrance, make-up and skin care categories, with hair care falling into the latter category.
Although the prestige beauty market saw sales declines across all three categories, make-up and skin care performed significantly better than fragrance, which showed a decline of 10 percent on 2008’s figures, falling to $2.48bn.
Make-up sales, which represent 39 percent of the total market, fell 5 percent to $3.16bn, and skin care sales fell 4 percent to $2.47bn.
Return to growth forecast
However, all three categories will return to growth in 2010, predicted Grant, as consumer spending begins to pick up, although she warned recovery would be relatively slow.
“We anticipate that skincare will be the fastest category to recover and post positive gains (mid - single digits), make-up will follow but with somewhat softer increases (lower single digits), and, after years of successive declines, fragrance will stabilize (flat to low single digit performance),” said Grant.