Beauty Industry

Prestige Skincare Plumps Up Sales

New report from NPD shows skin care sales increased in first half 2010

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By: Jamie Matusow

Editor-in-Chief

Anti-aging products helped lead the way as baby boomers and others made beautiful skin a top priority. Prestige skincare dollar sales increased 7% in first half 2010, compared to first half 2009 according to market research company, The NPD Group, Inc. All segments posted positive growth dollar growth in first half (January through June) 2010, except for the Body segment, which fell by 5%.

The largest skincare category winner during the first half of the year was Sets and Kits, up 17% in dollar sales. The Face category had the second highest growth, an increase of 7% in dollars. Sun and Hair categories achieved sales increases of 5% and 3%, respectively.

Anti-aging captured the greatest share of the facialskin care market with 61% for the first half of 2010. In the Face category, anti-aging outperformed the overall segment performance, up 9%, compared to first half 2009. Of anti-aging dollars, the majority was spent on a facial moisturizer (44% dollar share). Age specialists were the second largest segment at 25% share, followed by eye products at 19% share.

Karen Grant, vice president and global industry analyst, The NPD Group—and a member of Beauty Packaging’s Board of Advisors—said, “These positive results reflect consumers’ continued appetite for high quality skincare and the prestige shoppers’ loyalty to the prestige channel and the brands they love and trust.”

Grant added: “The results so far this year are quite encouraging, especially when we see that total skincare has not just surpassed the results of the recessionary year 2009, but has almost surpassed the pre-recession year of 2008. New launches (excluding gift sets) are up almost $20 million more than first half 2008 and specialized facial treatment products are up almost 60 percent compared to 2008. These achievements are signs that 2010 will be the year of prestige skincare.”

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