NPD Looks at the Year in Beauty

The NPD Group, Inc. presented the U.S. and global beauty industry’s first look at 2009 year-end results for skin care, makeup, and fragrance at its annual “Hot off the Press” event at the Plaza Hotel in New York City. According to NPD, the total U.S. prestige beauty industry showed a decline of 6% in dollar sales in 2009 vs. 2008.

All of the U.S. prestige categories experienced dollar declines. Prestige fragrance posted the biggest declines, followed by prestige makeup, and prestige skin care.

“Make no mistake, 2009 was a most challenging and difficult year for the prestige beauty industry,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.“Yet, particularly as we entered fourth quarter, there was evidence of some recovery as well as areas of growth across categories, at both ends of the price spectrum. Those could be found in the positive sales of products like smaller size women’s fragrances, innovations in foundation and concealer products,anti-aging and specialized basic skin care and hair care.”

The Food/Drug/Mass channel was flat in 2009. Similar to the prestige beauty market, fragrance sales declined. Makeup sales in the mass channel experienced growth and skin care sales were flat overall, however, if hair care was excluded, sales of skin care products at mass would actually have experienced growth in line with makeup. Fragrance sales in the National Chain channel saw dollar declines as well.

Globally, China experienced impressive sales growth in the fragrance, makeup, and skin care categories. On the other end of the spectrum, Mexico, Spain and Italy showed declines in all three categories.France showed the least drop in overall prestige beauty sales with minimal declines in the fragrance and makeup categories.