U.S. prestige beauty industry sales revenue remained flat in the first quarter (Q1) of 2025, compared to the same period in 2024, according to Circana. In comparison, mass market beauty sales experienced a year over year dollar increase of 3% — marking the first time in several years when the mass channel has outpaced prestige.
In fact, the stronger performance in the mass market was fueled by price increases, as unit sales were down 1%.
The weakness in the prestige product market during the first quarter was primarily driven by a decline in consumer activity in January. However, purchasing behavior gradually rebounded in February and accelerated further in March. As a result, all categories within the selective channel experienced growth in March.
Fragrance is top-performing category
Looking at sales by category, fragrance continues to hold its place as the top-performer, with Q1 dollar sales up 4% in the prestige channel and 8% in the mass market. In prestige outlets, gift sets outperformed thanks to mini and travel size sets, with an increase of 45%. High concentrations including eau de parfums and parfums continued to drive the greatest impact on growth.
Makeup, which remains the largest prestige beauty category based on sales volume, experienced a slight decline of 1% based on dollars in the prestige channel. Though the face and eye segments were challenged, Circana identified stick formats as a bright spot. According to the market research firm, stick eye shadow and stick foundation each grew double digits, outperforming their counterparts that come in more traditional forms. As far as lip makeup is concerned, sales remained flat for the overall category.
The skincare category experienced a decline of 3% in dollars, but units sold grew by 1% in the prestige channel. In mass, the category posted growth in terms of both dollars and units, which is notable given that skincare was the most challenged beauty category in prestige retail.
According to Circana, skincare’s dull performance in the prestige channel can be linked to declines in facial skincare, notably key areas such as face serum, face exfoliator, and lip treatment. Conversely, body and sun care segments continued to grow. Body sprays, serums, deodorants, and hand soaps all grew by double-digits, and sun care-related products from sunscreen to self-tanners grew, as well.
Hair continued to be one of the best performing category within prestige beauty. Sales grew by 4% in dollars in Q1 in the prestige channel and experienced single-digit growth in the mass market, as well. In prestige, styling products were the top driver, increasing by 12%. Emphasizing the importance of hair wellness, scalp care products continued to grow in sales, as well as those addressing hair thinning, hair loss, and heat protection.
“The beauty industry will continue to stabilize following its tremendous growth streak in prestige, even as some categories such as fragrance will continue to surge,” said Larissa Jensen, global beauty industry advisor at Circana. “The macro landscape of 2025 presents a complex mix of factors that will shape industry dynamics. When navigating through what we can’t control, we as an industry must prepare where we can – through strategies that include creating brand value beyond price and focusing on compelling value propositions and high-margin innovations to appeal to consumers.”
