01.27.09
At its annual “Hot Off the Press” event today at the Rainbow Room in New York City, market research firm The NPD Group presented the global beauty industry’s first look at 2008 year-end results for skin care, makeup and fragrance. According to NPD, the total U.S. prestige beauty industry showed a decline of 3.3% in dollar sales in 2008 vs. 2007.
Of all categories tracked by NPD in the U.S., fragrance experienced the biggest decline. “Conversely, fragrance may hold the greatest opportunity for growth,” said Karen Grant, senior global industry analyst and vice president, beauty. “The most pressing concerns for the fragrance category are not only the loss of users, but decreasing frequency of usage. It is important that the industry find new ways to engage consumers, especially as they become more independent about their product selection,” said Ms. Grant.
Makeup also struggled in 2008. While most categories across makeup were in decline, skin care may be an area in which opportunity exists. While overall growth in skin care remained flat in the U.S., it is anti-aging products that continue to show promise.
The Food/Drug/Mass channel fell flat in 2008. Similar to the prestige beauty market, fragrance sales declined. However, makeup and skin care (excluding hair care) sales in the mass channel experienced growth.
Globally, the prestige beauty industry outpaced U.S. performance in 2008. China experienced 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.
Of all categories tracked by NPD in the U.S., fragrance experienced the biggest decline. “Conversely, fragrance may hold the greatest opportunity for growth,” said Karen Grant, senior global industry analyst and vice president, beauty. “The most pressing concerns for the fragrance category are not only the loss of users, but decreasing frequency of usage. It is important that the industry find new ways to engage consumers, especially as they become more independent about their product selection,” said Ms. Grant.
Makeup also struggled in 2008. While most categories across makeup were in decline, skin care may be an area in which opportunity exists. While overall growth in skin care remained flat in the U.S., it is anti-aging products that continue to show promise.
The Food/Drug/Mass channel fell flat in 2008. Similar to the prestige beauty market, fragrance sales declined. However, makeup and skin care (excluding hair care) sales in the mass channel experienced growth.
Globally, the prestige beauty industry outpaced U.S. performance in 2008. China experienced 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.