Beauty Buzz

Prestige Beauty Continues to Show Growth, Says NPD

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By: Jamie Matusow

Editor-in-Chief


Prestige makeup shows healthy gains.
Both Prestige and Mass beauty sales are on an upswing, according to The NPD Group, Inc., which presented its findings on 2013 global year-end results for skin care, makeup, and fragrance at their 14th annual “Hot Off The Press” event at the Union League Club in New York on January 29. The CEW (Cosmetic Executive Women) partnered to host the event for the second consecutive year.

One of NPD’s key findings was that the U.S. prestige beauty industry grew 5% in dollar sales in 2013, compared to 2012. Skin care and makeup each experienced healthy gains of 7%, while fragrance dollars remained flat last year.

“Beauty is among a handful of industries showing growth in 2013,” said Karen Grant, vice president and senior global industry analyst, The NPD Group—and a member of Beauty Packaging’s Board of Advisors. “Consumers continue to struggle with lower income levels, but the global economic environment continues to stabilize. The social trends all around us indicate an improving outlook and a willingness to invest when the associated risk is low; this is a real opportunity for our industry.”

By country, sales of prestige beauty were highest in Mexico (12%), followed by the UK (6%) and the U.S. (5%). France, Italy and Spain each showed a 2% decline.

Looking beyond the prestige market, sales within the U.S. mass channel also increased slightly, up 1% for total beauty in 2013, versus 2012, as per IRI. The makeup category grew the most, at 2%, followed by skin care at 1%, but fragrance struggled with a 6% decline in dollars compared to 2012.

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