Portable fragrances, sensitive skin care and mineral makeup may just save the beauty biz, according to industry insiders.
After the Recession of 2009, pockets of growth—as seen with the products above—show signs of hope for the U.S. prestige beauty industry, noted The NPD Group, Inc., a Port Washington, N.Y.-based market research company in recent findings.In 2009, the prestige beauty marketplace saw a 6% decrease in sales to $8.19 billion—so 2010 is going to be a tough nut to crack.
“This year was indeed a very challenging year for the beauty industry,” said Karen Grant, vice president and global industry analyst, NPD. “And now in 2010, the reality is that business will still be challenging.”
The overall industry decline was primarily driven by fragrance, said NPD in its market investigation. Total sales of fragrance fell 10% to $2.48 billion in 2009 in both men’s and women’s categories. One segment that performed slightly better than the overall market was gift sets, which dropped the least, down 8% in women’s and 5% in men’s, offset somewhat by the increase in average price, reaching an average of $64.50 for both genders.
Sensitive skin care SKUs like Dermelect Cosmeceuticals targeting common issues such as redness are selling well.
So, do good things come in petite packages? According to Grant, absolutely.
Classic fragrances such as Estee Lauder Beautiful are holding strong in recent market declines, noted NPD.
Additionally, when someone considering fragrance as a gift, smaller sizes are not only a thoughtful option, but a budget friendly one, added Grant.
As for the next big sector, prestige makeup, it posted a second year of declines—down 5% to $3.16 billion, noted NPD in its report. The only two segments to outperform the category were gift sets (+2%), fueled by new face-focused sets and the face segment (-2%), which was driven by mineral-based products.
The leader in face focused sets is Bare Escentuals, noted Grant.Also helping boost sales of face-focused sets were Lancome, Trish McEvoy, as well as Clinique.
“The popularity of these sets is that they all provide both value and a natural makeup look,” Grant told HAPPI.
This was aided in part by the fact that there was 50% more new mineral products introduced in 2009. Standouts among the newer mineral makeup offerings were MAC Mineralize and Lanome Ageless Minerale, Grant told HAPPI.
“It is important to point out that prestige only captures a small slice of the mineral makeup pie, but this product remains a big focus and a major driver of the face segment in prestige,” said Grant.
|Limited edition rollouts from leading makeup brands like Bare Minerals entice consumers.|
And in skin care, it’s all about Estee Lauder. According to Grant, the leader in basic and sensitive prestige skincare offerings is Clinique.For sensitive skin, there were also offerings from brands at the highest end of the market like La Mer and also at entry price points like MAC – all Estee Lauder brands, by the way.
Whether skin care, cosmetics or fragrance, Grant added that the other “absolute reality” is that consumers—as many as three in five women—tell NPD they are buying beauty products because “they make me feel confident” and “even in these tough economic times, I will still buy beauty products because they make me feel better about myself.”