While overall sales of prestige fragrances sold in U.S. department stores have declined, premium price fragrance sales are up significantly, according to a new report from The NPD Group, Inc., a market research company in Port Washington, NY. Premium fragrance products priced at $100 and above, represented approximately 9% of total fragrance juice sales in the first quarter of 2009, and generated a 10% increase to $26 million.

Makeup products priced at the premium level ($50 and above) have also seen strong growth in the first quarter, versus three years ago. Premium price face makeup, which represented 6% of total face makeup sales in the first quarter of 2009, saw dollar volume almost double since 2006, from $14.1 million to $27.1 million, a 3% increase from 2008. Premium-priced eye products (priced over $35) were especially strong. The launch of MAC’s Hello Kitty Eye Shadow X 4, priced at $38, was a key driver of the growth in premium for eye, reports NPD.

“The growth in premium fragrance and makeup, while smaller segments compared to premium skin care, are driven by the fact that these products are still perceived as more niche and unique to the prestige arena,” said Karen Grant, senior global industry analyst and vice president of beauty.

Premium price skin care face products (priced over $70) have, up until now, been believed to be somewhat recession-proof. Recently, however, premium price skin care face product sales declined by 6% in the fourth quarter of 2008. That was the first time premium price skin care face products performed worse than products priced below $70, which were down only 3% in the fourth quarter of 2008. Sales of premium price face products fell 7% in the first quarter of 2009, while sales of face products priced below $70 dropped 5%, says NPD.

“The trends in premium price beauty show women are becoming increasingly selective in where they choose to invest their limited resources. While skincare is the category most women will opt to spend on, if there are viable options at a lower price touting benefits perceived to be comparable with premium offerings, then women are more apt to try these products, especially in these difficult times,” said Ms. Grant.