According to beauty market research conducted by The NPD Group, in 2010, total U.S. prestige beauty generated $8.4 billion, an increase of 4 percent in dollars, compared to $8.19 billion in 2009.

Prestige fragrances experienced dollar sales that posted their first annual gain since 2006, dollars grew +1 percent, versus 2009. Juices grew 4 percent for both men and women, which helped drive the overall performance of +1 percent for both. Fragrances launches were up +3 percent, driven by men’s fragrance launches, which grew +10 percent. Gift sets, which have traditionally been the better performing segment in prestige fragrance, declined in both the women’s (-1%) and men’s (-5%) market.

Prestige skin care proved to be the strongest performer among the prestige beauty categories. Skin care not only gained back what it had lost during the recession, but the category also surpassed pre-recession levels. Launches, which grew +30 percent were a major contributor to the total prestige skin care increases, as well as anti-aging products, which grew +12 percent. Premium face products, ($75 and above), experienced a +7 percent dollar increase from 2009.

The NPD Group also says it was the first time in two years that prestige makeup experienced category growth. Fueled by the double-digit growth of offerings from primers to anti-aging face products, to rich color options in lip and nail, five of the six segments within makeup posted growth. Three segments either met or outpaced category growth: Face (+3%), Lip (+3%), Nail (+39%). Eye (+2%) and Other Color (+1%) grew, but slightly behind the category. Gift sets declined in dollars, but had a unit growth of +3 percent.

“In 2010, prestige beauty saw a quick recovery in skincare, followed by a gradual upturn in makeup, and finally, a late-year rally in fragrance,” saysKaren Grant, vice president and senior global industry analyst, The NPD Group. “Individually and collectively, as an industry, we saw adroitly and strategically deployed initiatives in product, placement, and pricing that worked to re-engage consumers in prestige, both in stores and online. It is the type of multi-pronged and multi-faceted action that will be key to driving the prestige beauty market in 2011,” Grant says.