Since 1997, beauty sales in U.S. department stores have grown nearly 33% and the industry has added over 1,000 brands, that’s according to the NPD Group, which is marking its 10th anniversary with a special report on the past 10 years in the beauty industry. While more young people are purchasing beauty products, Baby Boomers are also influencing the marketplace. Men are into grooming products more than ever, and the marketplace is more ethnically diverse. Designers and celebrities have made a major impact on the fragrance market, generating more than $200 million in sales between 2003 and 2005.
To illustrate how the market has changed in the past decade, NPD has compared data from the past decade. For example, in 1997 beauty sales in U.S. department stores totaled $6.2 billion; today, beauty sales in U.S. department stores total $8.2 billion. Then, celebrity fragrances represented approximately 2% of the total prestige fragrance market; today, they represent 7% of the total prestige fragrance market.
Cosmeceutials have also grown. Then, cosmeceutical brands were virtually unknown at 1% while today, cosmeceutical brands are approximately 11% of prestige skin care sales. More info: www.npd.com.