According to NPD Group’s latest figures the US prestige beauty industry posted an 8 percent gain in the first half of 2013, generating $5 billion during these six months.
It is a slightly different picture in Europe where prestige beauty sales in France, Italy and Spain continue to face challenges, despite the UK gaining 6 percent.
"Our expectation for 2013 was that the global prestige beauty industry would look similar to 2012, and the results thus far are proving this to be true, as economic uncertainties continue to weigh heavily on the European markets," says Karen Grant, vice president and senior global industry analyst at NPD.
Skin care and make-up
Skin care and make-up were star performers in the States, with $1.8 billion, and $2 billion in sales respectively.
Fragrance performance was positive too at $1.1 billion, but at a slower pace than seen in the first six months of 2012. NPD states that in all three categories, premium-priced products contributed to increases in sales so far this year.
In Europe, despite declines in many countries, fragrance continues to account for the largest share of prestige beauty sales; although it is make-up again that was the star performer, with strong gains in the UK, and a slight uptick in Spain.
"The similarities in retail distribution, brand assortment, and product mix in the US and UK continue to help both markets capitalize on positive trends,” continues Grant.
“Though the results for these countries, compared to those in the Euro zone, look like 'the tale of two markets', there is one common thread: investment spending continues.”
The beauty expert states that markets in the Euro zone face greater challenges but, with the exception of Spain, most markets are continuing to show increases in average selling price across all categories.
“This tells us that while consumers may be cutting back in spending they are continuing to invest in value, even when that may be at higher prices," ends Grant.