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Direct-to-consumer Beauty is now A $2 Billion Category

August 2, 2013

Direct-to-consumer (DTC) beauty is big business. But just how big? Nearly $2 billion, according to The NPD Group, which has launched a new service to track DTC sales of fragrance, makeup and skin care products sold on department store websites, in key online-only beauty retailers and through TV/home shopping retailers.

“We are excited to share a more well-rounded analysis of the beauty market with this new tracking service,” said Diane Nicholson, president of US softlines, The NPD Group. Inc. “This is an opportunity for our business partners to get insights into this competitive landscape and understand the unique dynamics of this beauty channel.”

NPD BeautyTrends Direct reveals the direct-to-consumer beauty sales increased 18% in 2012 to $1.96 billion, compared to 2011. Skin care represented more than half of those sales, followed by makeup with almost a third of annual dollars.

“At nearly 20% of the US prestige beauty market, the direct-to-consumer channel is increasing, and playing a larger role in shaping leading market trends,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “Growing ever more connected, consumers will continue to take advantage of, and benefit from, the competitive and specialized offerings made available to them through this convenient channel.”

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