“The value of premium priced beauty products to a consumer can range from the quality of the ingredients and product performance, to something as simple as cost benefits that come with a larger format,” said Karen Grant, vice president and senior global industry analyst, The NPD Group, Inc. “Whatever the motivation, consumers continue to be more willing to invest in their beauty products.”
Over the past two years, the average price of prestige beauty products has increased consistently. Fragrance is the category with the highest average selling price, largest price increase, and most significant increase in unit sales of premium priced products. Fragrance juices, face makeup, and sun-related skincare are the segments with the highest increases in average selling price between December 2012 and November 2013.
“The willingness of today’s consumers to spend a little more on their beauty products is a continued opportunity for manufacturers and retailers. It is the right time for communicating the end benefit of investing in better products and service to get the attention of your customer, and delivering on those promises will do the rest,” said Grant.