Sales of super-sized and potent formula prestige beauty products report double digit growth in the six months of 2022 in the United Kingdom, according to The NPD Group. The prestige beauty market was valued at GBP 926 million in the first half of 2022, an increase of 23% on the same period in 2021.
According to the market research firm, this dynamism is linked to the trend of premiumisation where consumers upgrade their beauty purchases to include larger sizes and more potent formulas. Consumers also appear to be upgrading their purchases to items with a higher price point, a trend observed in the foundation market. The average sales price of prestige beauty products in the first half of 2022 increased by 8%, compared to the same period last year.
Fragrance is in fashion
The premiumisation trend is most evident in the prestige fragrance market. Both men’s and women’s Eau de Parfum and Perfume formats have increased in importance and are growing faster than the rest of the market. In the first half of 2022 sales of women’s perfume formats rose 137% compared to the same period in 2021 and sales of men’s perfume formats doubled at 100% in the same period.
Total sales of women’s fragrance juices (including formats like Eau de Toilette, Eau de Parfum and Perfume) increased 34% and sales of fragrance juices over 100ml in size rose 50% in the first half of 2022, compared to the same period in 2021.
Sales of fragrance juices in the first half of 2022 with a retail price over GBP 125 now equate to 11% of the mix of total fragrance sales compared to 7% of the mix of total fragrance sales in the first half of 2021. Sales of these products with a retail price of GBP 125 and above increased 91% in the first half of 2022, compared to the sales for the total fragrance market where the uptick was 33%.
Innovation drives sales
The average sales price of prestige foundations was GBP 30 in the first half of 2022, an increase of 10% compared to the same period last year. This is driven by innovation and newly launched products.
The top five new foundation products launched in the first half of 2022 have an average sales price between GBP 32.45 and GBP 37.69, demonstrating the impact of premiumization in this sub-segment.
The average sales price for women’s skincare products increased 7% in the first half of 2022, compared to the same period last year. Women’s prestige skincare sales were up 8% year-on-year whilst mid-range skincare sales increased just 4%, indicating that women are opting for more premium products with a higher price point.
“Consumers are increasingly choosing to buy more premium products with a higher average sales price in the prestige beauty market. While we recognize that there is pressure on people’s expenditure now, and people are seeking better value for money, and larger sizes and more potent formulas are more cost effective to buy,” explains Emma Fishwick, Account Manager, NPD UK Beauty. “We believe that people are buying less and upgrading their purchases to those with more innovative formulations (as in make-up and skincare) and in fragrance they are opting for more expensive bottles and the most potent fragrance formulas. There is also the lure of premium brands where people can ‘buy into’ designer brands in an affordable way.”