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Makeup up 9% as online continues to steal share from brick and mortar, according to NPD data.
May 17, 2016
By: Christine Esposito
Editor-in-Chief
In the first quarter of 2016, sales of US prestige beauty products were $3.7 billion, a 4% increase from Q1 2015. The growth across all categories was in large part driven by online sale, according to The NPD Group's Q1 Industry Pulse report released today. Representing 14% of dollar sales during Q1, and a 2% increase over Q1 2015, online continues to capture share from brick-and-mortar. “Online is beauty’s primary growth engine, not just for the future, but now. It’s the arena where consumers are most free to investigate and discover products as well as emergent brands. As user generated content continues to grow more prominent and influential, it’s also building a reputation as the trusted voice consumers turn to when contemplating a purchase. Online, consumers are increasingly more comfortable to buy when they trust the voice,” said Karen Grant, global beauty industry analyst, The NPD Group. “Brands and retailers adapting by increasing communication in both traditional and newer formats like user generated content to tell the brand story and consumer journey, are gaining consumer trust, involvement, and advocacy.” Makeup sales rose 9% over Q1 to $1.7 billion; skin care rose 1% to $1.3 billion; and fragrance sales jumped 1% to $686.9 million.
U.S. Prestige Beauty Category Sales Performance Dollar Sales, January-March 2016 versus 2015
Category
Q1 2016 Dollar Sales
Percent Change vs. Q1 2015 (TMM)
Percent Change vs. Q1 2015 (Online Only)
Makeup
$1.7 billion
+9 percent
+30 percent
Skincare
$1.3 billion
+1 percent
+21 percent
Fragrance
$686.9 million
+25 percent
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