Beauty Sales Rise 11%

The NPD Group, Inc., a market research company, presented the US and global beauty industry’s first look at 2011 year-end results for skin care, makeup and fragrance at their annual “Hot off the Press” event at the Plaza Hotel in New York City today.According to NPD, the total US prestige beauty industry showed an increase of 11% in dollar sales in 2011 vs. 2010.

In 2011, skin care and fragrance sold in US department stores both posted double-digit dollar growths of 14% and 11% respectively, while makeup grew a healthy 9%, compared to 2010.

“In the US, UK and China, prestige beauty is enjoying one of the most robust sales periods ever,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “In the US, for example, beauty sales in both the mass and prestige channels were positive month after month in 2011. And while both channels were positive, prestige beauty reigned supreme. From the stellar increases in prestige skincare to the continued gains in makeup, to the double-digit rebound of fragrance, prestige beauty is experiencing a time of unprecedented growth.”

“In continental Europe,” Grant continued, “where the prestige market is more mature, growth is more tempered, and performance among the categories has not been as dynamic as in the US or UK, but nonetheless, prestige beauty managed to flourish thanks to brand media investment, bigger in-store animation, and price promotions.”

In addition, the US Food/Drug/Mass channel experienced a 4% increase in sales for total beauty in 2011. Makeup sales posted the biggest increase at 8%, followed by skin care at 3%, while fragrance sales declined 5% in dollar sales.