Recently published data from The NPD Group reveal mixed results for the global prestige beauty industry last year. According to the market research company, the U.S. prestige beauty [1] industry posted a 7 percent gain in 2012, generating USD 10.2 billion, compared to the 11 percent increase in 2011. On the other hand, challenging economic conditions contributed to sales declines across many European countries.
Annual 2012 growth in the U.S. was driven primarily by skincare, which amounted to USD 3.4 billion. Makeup had the second highest gains generating USD 3.8 billion in sales, followed by fragrance at USD 2.9 billion. Premium-priced products in all U.S. beauty categories prevailed in the dollars gained in 2012.
In Europe, skincare sales were down two percent in overall category performance with some pockets of growth in the Face, Body, and Sun segments. Driven by the strong sales in the UK, makeup was the only category to experience an overall growth of two percent throughout Europe. Fragrances were down one percent overall, comprised of Juices, Ancillaries, and Gift Sets.
“Moving into 2013, we can expect premium products to again be a shining light even in Europe,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “In fragrance, eau de parfums are outperforming in most geographies thanks to the strength of ‘couture’ designer brands. In makeup, alternative brands join designer and makeup artist brands in expanding the offerings in foundations and in colour categories, such as innovations in lip products. In skincare, new sub-categories are gaining importance as high-end innovation in devices,” said Grant.
