According to the NPD Group, purchases of small gifts such as eyeliners, facial skincare masks, fragrance minis, etc.—will make the season bright for retailers, by offering the wide variety consumers crave, but at a price they can afford.
 
Makeup, which leads overall prestige beauty, with dollar sales up almost 10% from last year, is predicted to continue to thrive throughout the holidays. Eye and lip segments will be the primary drivers.
 
Fragrance is always a top seller at this time of year, and after years of weak results, the market appears strong. Fragrance has been reported as the fifth most-popular purchase of the season, and with more women’s fragrances available this year, the outlook is expected to remain positive.
 
For the first time in a decade, NPD reports that overall category performance is below that of fragrances. While sales from indie and premium priced brands are robust, it can’t overcome the softness in top sub segments like facial moisturizers, age specialists, and gifts. Capitalizing on the smaller subcategories that are growing will help keep skincare to ring up sales this season.
 
According to Karen Grant, vice president and global industry analyst, The NPD Group, Inc.—and a member of Beauty Packaging’s Board of Advisors—“The smaller items that don’t generally get the big headlines, will have a big impact on the market this holiday season – taking advantage of opportunities in unexpected spaces is key in today’s shifting prestige beauty market.” She adds: “The positive direction that much of the U.S. prestige beauty industry is headed in this holiday season will be given an added boost by brands’ efforts to connect with and engage their consumers in inventive ways.”