“Fragrance may hold the greatest opportunity for growth. The most pressing concerns for the fragrance category are not only the loss of users, but decreasing frequency of usage,” she said. “It is important that the industry find new ways to engage consumers, especially as they become more independent about their product selection.”
Makeup also struggled in 2008. While most categories across makeup were in decline, overall growth in skin care remained flat in the U.S., according to NPD. In particular, anti-aging products continue to show promise.
On a global basis, other prestige beauty markets outpaced the U.S.’s performance in 2008. China reported impressive sales growth in the fragrance, makeup, and skin care categories, as did Mexico. Italy and France showed an increase in makeup sales, while skin care sales posted declines in both countries. Fragrance sales were flat in France and in Italy.
NPD reported that the U.S. food/drug/mass (FDM) channel was flat in 2008. By sector, fragrance sales dropped, however, makeup and skin care (excluding hair care) sales experienced growth.
More info: www.npd.com