According to Circana, U.S. prestige beauty industry sales revenue grew by 9% in the first quarter, compared to the same period in 2023, and mass-market beauty sales experienced a year-over-year increase of 2%.
 
Larissa Jensen, global beauty industry advisor at Circana, said:
“The slowdown in growth that we are seeing in the beauty industry is a reflection of an industry stabilizing after strong double-digit performance for the past two years. But we should not underestimate its strength, as sales grew by over $600 million in Q1. There is a lot of excitement in beauty, from trending brands and new product launches to the growing engagement from younger consumers.”  

Skincare dollar sales increased by 10% in the prestige channel and was the fastest-growing category in the mass market. According to Circana’s Checkout data, Consumer spending was up double-digits in Q1 compared to Q1 of last year. More buyers were spending more money and purchasing more frequently on skincare products. Body spray products topped the skincare category, as sales nearly tripled since last year. Face serum was the second strongest performer, driven by new launches from top clinical brands.
 
The prestige fragrance category recorded a growth in sales revenue by 13%. While the fragrance category is decreasing in terms of price, with the growth of travel- and mini-sized products, there is growth in the luxury sector. Travel size sets, including discovery sets, grew at double the rate of traditional full-size sets.
 
Spending per buyer proved to be directly influenced by the presence of children. The average in Q1 increased five-times the rate in households with children compared to those without. The Gen Alpha effect also affected prestige fragrance sales, as higher-income households with kids grew twice the rate compared to households without kids. 
 
According to Circana data, prestige hair product sales grew by double digits in Q1. Hair thinning, hair loss products hair oils and serums, scalp care, and heat protectants experienced sales growth of between 13% and 25% in Q1. Salon brands remained the top sales contributor, but celebrity brands grew the fastest, up 64%.  
 
Makeup was the softest-performing category in Q1 in prestige and mass markets. Despite the slowdown, makeup remains the largest prestige beauty category. Lip makeup was the strongest performer, with sales up 26% based on dollars sold in Q1. This was led primarily by tinted lip balms and oils, which are among the hottest makeup products.