Defined by sales of about $6 billion at FDM outlets and department stores in 2004, the makeup market has grown in recent years. A lack of new product introductions has put a damper on sales, and economic conditions play a role in influencing how much women are able to spend on cosmetics.
Department store brands have fared better than FDM outlets. Experts from the National Association of Chain Drug Stores say drug stores have been affected because consumers have shifted to specialty shops and dollar stores for cosmetics purchases.
Facial makeup represents the largest portion of makeup sales through FDM outlets. With the number of women aged 45 to 64 expected to grow by nearly 30% between 2000 and 2010, manufacturers are developing foundations with anti-aging properties. Strong growth is evident with foundations that promise to blend exceptionally well to the skin, with more colors to suit the growing ethnic population in the U.S.
The second-largest segment in the makeup market in FDM channels is eye makeup, and its growth has been outpacing other categories. At the same time, lips are being played down, which may account for the lagging sales of lip makeup. However, lip gloss sales have recorded strong growth.
Makeup sales are likely to continue moderate growth in the coming years because the expected growth of the female population alone will be enough to propel sales. The market will also be assisted by the emphasis on products that conceal or reverse the signs of aging, along with a broadening of color palettes to boost future sales. The trend towards more precise skin tone matching could likely increase makeup usage among Black and Asian women, who report using makeup at a lower rate than Whites and Hispanics.