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IN THE NEWS
The Beauty Market is Thriving, Says NPD in 10-Year Report
2007-08-15 | 08:59
To illustrate how the market has changed, NPD has compared data from their first year, 1997, to their most recent annual data, from 2006.
The year 2007 marks the celebration of NPD’s “Perfect 10” – 10 years tracking prestige beauty industry trends.
Since 1997, beauty sales in U.S. department stores have grown by $2 billion, and the industry has added over 1,000 brands. While more young people are purchasing beauty products, aging Baby Boomers are also influencing the marketplace. Men are more into grooming products than ever. And the marketplace is more ethnically diverse. Designers and celebrities have made a major impact on the fragrance market, generating more than $200 million of growth between 2003 and 2005.
To illustrate how the market has changed, NPD has compared data from their first year, 1997, to their most recent annual data, from 2006. For example, in 1997 beauty sales in U.S. department stores totaled $6.2 billion; today, beauty sales in U.S. department stores total $8.2 billion. Then, celebrity fragrances represented approximately 2% of the total prestige fragrance market; today, celebrity fragrances represent 7% of the total prestige fragrance market. In 1997, lip gloss generated a little more than $23 million; today, lip gloss sales reach close to $200 million.
Luxury items and cosmeceutials have also grown. Then, less than 36 skincare items sold for above $100. Today, 420 skincare items sell for above $100. Then, cosmeceutical brands were virtually unknown at 1% while today cosmeceutical brands are approximately 11% of prestige skincare sales.
Since 1997, beauty sales in U.S. department stores have grown by $2 billion, and the industry has added over 1,000 brands. While more young people are purchasing beauty products, aging Baby Boomers are also influencing the marketplace. Men are more into grooming products than ever. And the marketplace is more ethnically diverse. Designers and celebrities have made a major impact on the fragrance market, generating more than $200 million of growth between 2003 and 2005.
To illustrate how the market has changed, NPD has compared data from their first year, 1997, to their most recent annual data, from 2006. For example, in 1997 beauty sales in U.S. department stores totaled $6.2 billion; today, beauty sales in U.S. department stores total $8.2 billion. Then, celebrity fragrances represented approximately 2% of the total prestige fragrance market; today, celebrity fragrances represent 7% of the total prestige fragrance market. In 1997, lip gloss generated a little more than $23 million; today, lip gloss sales reach close to $200 million.
Luxury items and cosmeceutials have also grown. Then, less than 36 skincare items sold for above $100. Today, 420 skincare items sell for above $100. Then, cosmeceutical brands were virtually unknown at 1% while today cosmeceutical brands are approximately 11% of prestige skincare sales.
