Welcome Guest to Happi

Subscribe Free: Magazine | eNewsletter

current issue Wipes 2014
Print

Global Prestige Beauty Shows Varied Results in First Half



Published September 4, 2013
Related Searches: consumers retail fragrance read
Post a comment
Consumers in some parts of the world are still cautious when it comes to cosmetics. According to The NPD Group, the global prestige beauty market experienced mixed results in the first half of 2013. The US prestige beauty industry posted an 8% gain, generating $5 billion in the first six months of the year, and the UK gained 6%, generating £803 million in sales ($1.2 billion at current exchange rates). However, France, Italy and Spain continued to face challenges in this industry.

“Our expectation for 2013 was that the global prestige beauty industry would look similar to 2012, and the results thus far are proving this to be true, as economic uncertainties continue to weigh heavily on the European markets,” said Karen Grant, vice president and senior global industry analyst, The NPD Group, Inc.

Skin care and makeup were the drivers behind US growth in the first half of 2013, with $1.8 billion and $2 billion in sales, respectively. Fragrance performance was positive as well (+4%), at $1.1 billion, but at a slower pace than seen in the first six months of 2012 (+8%). In all three categories, premium-priced products contributed to increases in sales so far this year.

Despite declines in many countries, fragrance continues to account for the largest share of prestige beauty sales in Europe (UK: 43%, France: 62%, Italy: 40%, Spain: 51%). However, makeup was the star performer, with strong gains in the UK and a slight uptick in Spain. In terms of market share, Italy is the most level playing field, with each category representing close to a third of sales in the first half of the year.

“The similarities in retail distribution, brand assortment, and product mix in the US and UK continue to help both markets capitalize on positive trends.  Though the results for these countries, compared to those in the Euro zone, look like ‘the tale of two markets,’ there is one common thread: investment spending continues. The markets in the Euro zone face greater challenges but, with the exception of Spain, most markets are continuing to show increases in average selling price across all categories. This tells us that while consumers may be cutting back in spending they are continuing to invest in value, even when that may be at higher prices,” said Grant. 

More info: www.npd.com and npdgroupblog.com


blog comments powered by Disqus