Nancy Mills, Kline’s Consumer Practice Industry Manager

Sales of personal care products in the U.S.A. have exceeded 38 billion U.S. dollars at the manufacturers’ level in 2001, thus surpassing pre-recession levels and representing robust growth of 4.2%, according to the a recent report [1] from global consulting and research firm Kline & Company. Growth of cosmetics and toiletries market was boosted by an especially strong performance in the luxury class, which saw nearly double-digit growth.

Driven by ‘frugal-fatigue’ and a rising financial confidence, consumers are compensating by purchasing premium products as affordable luxuries driving sales in the luxury and mass trade classes,” explains Nancy Mills, Kline’s Consumer Practice Industry Manager.

According to Kline, makeup and fragrance sales were the main drivers of the U.S. cosmetics market in 2011. “Makeup sales comfortably exceeded the industry average growth rate, boosted by an astonishing near 30% growth of the nail polishes subcategory in 2011,” says the market research firm in a release. “The magnitude of this growth was partly caused by the emergence of new trends, including bold colours and special effects that attracted women of all demographics.” Besides nail polishes, eye makeup products also saw a strong increase in 2011. Eye shadows, eyeliners, and mascaras, benefitted from the popularity of the ‘smoky-eye’ look.

Last year also saw high growth rates for fragrances. The luxury trade class in particular experienced above-average growth of over 10%. According to Kline, niche fragrances also emerged as a major trend in 2011. “Limited distribution scents from brands such as Bond No. 9, Creed, and By Kilian gained high visibility during the period. Conversely, celebrity scents saw substantial declines,Kline reports.

As far as skin care, which remains the largest product class, are concerned, the best growth was achieved by men’s skin care. As they are becoming more popular, men’s products are expanding their offering by creating new solutions such as concealers, products free of parabens, formaldehydes, dyes, and added fragrances.

Looking ahead, Kline projects skin care and makeup to maintain exceptionally high growth over the next five years, with dominating drivers being: multi-functional products that deliver promised results, a gradual replacement of harsh synthetic chemicals with more natural-derived products, and an adoption of a more overt environmentally responsible profile.