Beauty Industry

NPD Reports Gains for Prestige Beauty

Skincare and makeup were the primary drivers behind US growth in the first half of 2013.

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By: Jamie Matusow

Editor-in-Chief

The NPD Group, Inc., a global information company, reports that the U.S. prestige beauty industry posted an 8 percent gain, generating $5 billion in the first six months of the year. Skincare and makeup were the primary drivers, with $1.8 billion, and $2 billion in sales respectively.

Fragrance performance was positive as well (+4%), at $1.1 billion, but at a slower pace than seen in the first six months of 2012 (+8%). In all three categories, premium-priced products contributed to increases in sales so far this year.

“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,” said Karen Grant, vice president and senior global industry analyst, The NPD Group, Inc.—and a member of Beauty Packaging’s Board of Advisors

In Europe, the U.K. gained 6 percent, generating £803 million in prestige beauty sales, while France, Italy, and Spain continued to face challenges in this industry.

Despite declines in many countries, fragrance continues to account for the largest share of prestige beauty sales in Europe (U.K: 43%, France: 62%, Italy: 40%, Spain: 51%). However, makeup was the star performer, with strong gains in the U.K., and a slight uptick in Spain. In terms of market share, Italy is the most level playing field, with each category representing close to a third of sales in the first half of the year.


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