The  prestige  beauty industry totaled $5.9 billion for the first three quarters of 2007 with makeup and skincare leading the growth, according to consumer and retail information provider The NPD Group. For the first nine months of 2007, total prestige beauty sales grew by 4% compared to the same time last year, with makeup sales showing the biggest growth of 5%, with sales totaling $2.5 billion.  

From January to September 2007, the strongest growth was in the first quarter due to the extra retail week in January; it slowed a bit in the second quarter and picked up again in the third quarter.

Makeup was the strongest category for the first three quarters of this year. Within the makeup category, five of the six segments posted increases—Eye, Other Color, Gift Sets and Nail all outpaced category growth with gains ranging from 6% for Eye to 37 percent for Gift Sets vs. the same time last year.  Face, the largest of the segments, with close to half of category sales, saw a solid increase of 5 percent for the first nine months of 2007 versus last year.  

As the trend in fashion has leaned toward metallic, so has makeup. Several new products have entered the market in the first half of the year that promise to add everything from sparkle to shimmer with a subtle glow for eyes, lips, and cheeks.

“As we head into holiday, the positive momentum in the third quarter compared to last year indicates that we could have a decent fourth quarter for the prestige beauty industry,” said Karen Grant, senior beauty industry analyst, The NPD Group.  “In recent years, we have seen that when the third quarter is positive, the fourth quarter is one of the strongest performing quarters of the year, particularly in skincare and makeup.  People are not afraid to give a luxury beauty item; anti-aging gifts for example, are no longer taboo. It is worth noting that during the holidays women buy for themselves just as much as they do for others.”