U.S. Prestige Beauty Industry Posts Declines

In 2009, the total U.S. prestige beauty receded to $8.19 billion – a loss of 6% – compared to 2008, according to the latest report from beauty market research company The NPD Group, Inc.

The overall industry decline was primarily driven by fragrance. Total sales of fragrance totaled $2.48 billion in 2009, down 10% in both men’s and women’s. One segment that performed slightly better than the overall market was gift sets, which dropped the least, down 8% in women’s and 5% in men’s, offset somewhat by the increase in average price, reaching an average of $64.50 for both genders.

Prestige makeup posted its second year of declines, down 5% to $3.16 billion. The only two segments to outperform the category were gift sets (+2%), fueled by new face-focused sets and the face segment (-2%), which was driven by mineral-based products. This was aided in part by the fact that there were 50% more new mineral products introduced in 2009.

The prestige skin care category posted its first year of declines, down 4% to $2.47 billion. Sets & Kits (+8%) and Hair (+2%) were the only two segments to see growth in dollars.

Even though the category struggled overall, on a positive note, skin care was the only beauty category to see growth in fourth quarter (Oct. – Dec.) 2009, up 2%. The key driver to the quarter’s results was basic care skin care, specifically dedicated to sensitive skin, which saw positive growth – outperforming anti-aging growth for the first time.