l Sales of prestige beauty products rose 4% last year to a record $8.2 billion, thanks largely to soaring demands for new product launches, anti-aging products and celebrity endorsements, according to the NPD Group. Since 2000, sales of prestige beauty products, sold at U.S. department stores, have grown by more than $1 billion.
Among the three major categories, makeup recorded the best growth with a 6% increase in sales at U.S. department stores, hitting the $3 billion mark in 2005. Fragrance sales rose 3% to nearly $3 billion and skin care sales rose 2% to $2.2 billion in the high-end, prestige category.
Artist and alternative brands account for 29% of the prestige makeup market, up from just 3% in 1997. Premium products are also on the rise. The average price for an anti-aging skin care product is $66. Fragrance sales continued to be driven by star power as celebrities put their names and faces behind more fragrances.
Since 2003, there have been more prestige fragrance launches than all launches combined