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    Breaking News

    Prestige Beauty: Dramatic Declines in Q2

    Makeup market hit hardest but self-care products fared better, according to NPD Group.

    Prestige Beauty: Dramatic Declines in Q2
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    Happi Staff07.30.20
    In the second quarter of 2020, sales of US  prestige beauty products were $2.8 billion, a -36% decline in sales over Q2 2019, according to just released data from The NPD Group. 

    In contrast, online sales grew by +90% during these three months, representing about 61% of industry sales volume. The online channel’s market share soared to 70%.



     


    In today’s COVID-19 world, consumers have been prioritizing skincare and haircare – these categories have experienced softer declines and faster rebounds as compared to makeup and fragrance.

    In the spirit of self-care, the winning areas of the market have helped to create a spa atmosphere at home. These include hair masks and other hair treatments (+30%), nail care (+29%), body and facial devices (+16%), body exfoliators (+15%), candles (+13%), and home ancillary gift sets (+88%).

    Looking at week-over-week sales, fragrance picked up in May and June, driven by key holidays. The week of Mother’s Day, women’s fragrances grew by 96% over the prior week. During the week of Father’s Day over the previous week, men’s fragrance sales increased 117%, and the increasing popularity of higher concentration formats, such as parfums and eau de parfums, continued, said NPD.

    Week-over-week, the makeup sales declines began to soften in the latter half of the quarter. With protective face mask requirements, the focus has been on the eyes.

    Post-lockdown (May-June), the average week-over week growth for eye makeup was 6%, driven by products including false eyelashes, mascara, eye brow makeup, and eye liner.

    “Many bright spots remain despite the continued struggle in prestige beauty, which has been one of the hardest hit industries in 2020. While online sales have been strong, the success of brick and mortar remains a key factor in the industry’s recovery. As we enter the second half of the year, this channel dynamic is one to watch closely. Agility will be important in developing a winning strategy for holiday, which may look very different this year,” said Larissa Jensen, beauty industry advisor, The NPD Group.  

    According to findings from NPD’s Future Of Report, more than half of beauty shoppers in the U.S. intend to purchase beauty products in the next month – a rate that is higher than apparel, footwear, sporting goods, accessories, and watches. In addition, beauty shoppers have remained more optimistic about the future than the average consumer.  
     
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