Color cosmetics, sun care and hair care were particularly fast growing market sections, with skin care also posting an impressive increase.
Overall, the industry grew in absolute terms by around $1.38bn from 2008-2013, and had an average CAGR of almost five percent.
The report anticipates a slowing down of growth, with CAGR decreasing to around two percent from 2012-2017.
Chanel stood out as the top performer in terms of beauty brands, thanks to benefitting from “accessible price points and strong brand recognition with mainstream consumers.”
The brand is also helped by its multi-channel approach and spreading its brand message across a number of different media; using outlets like YouTube to engage with consumers.
Another factor boosting the company’s performance was their $7m ad campaign with Brad Pitt, which used both digital and mobile banners to “increase recall” amongst consumers.
Luxury cosmetics products were considered to have delivered a “consistent and strong performance” in the US market.
The impressive increases were attributed to companies adapting to shorter product lifestyles, more collections and increased promotional activity.
The report also highlights productive creative partnerships formed by companies; for example, Carine Roitfeld, a French fashion editor, joining forces with MAC cosmetics in 2012 to create a range of color cosmetics.
Color cosmetics had the highest volume increase at around 10 percent. They also posted an impressive 4.8 percent CAGR.
The highest position in terms of growth rate, however, was in hair care with an average of 7.3 percent.
The top three performing brands were Chanel by Chanel Inc and Giorgio Armani and Ralph Lauren by L’Oreal.