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    Breaking News

    Prestige Beauty Still Suffering

    But NPD Group's Q3 data finds two sectors are showing signs of recovery.

    Prestige Beauty Still Suffering
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    Happi Staff11.02.20
    Some good news and some not so good news to report in prestige beauty. In the third quarter of 2020, sales of US prestige beauty products were $3.7 billion, a 17% decline in sales over Q3 2019 and a softer decline than was seen in Q2 of this year.
     
    “We are seeing two stories unfold for beauty – one of stagnation and the other of recovery. Though it remains a powerful force in the industry, the needle has yet to move in a positive direction for makeup, as 70% of consumers scaled back their usage of the category this year. Alternately, the shifting consumer priorities toward self-care and treating themselves to little luxuries has helped both skincare and fragrance to enter a phase of recovery. Hair continues to grow in this stormy year, with double-digit gains across most areas of the market,” said Larissa Jensen, beauty industry advisor, The NPD Group.
     

     


    Makeup sales declined across almost all segments in Q3 compared to the same period last year, with the exception of nail products (+13%) including nail color, base/top coats, nail care, and nail tools and accessories.
     
    Body products led the gains for skincare in Q3, +17%, with gains for category leaders including cleansers, creams/lotions, and exfoliators. Both body and facial exfoliators sold well, up +48% and +15%, respectively. Sales of hand soaps grew by +134%.
     
    Higher concentration fragrances offering a longer lasting scent such as parfums and eau de parfums grew for the quarter, as did fragrance gift sets. Home scents grew by +21%, driven by candles. 
     
    Hair product sales rose by +11%, with all areas of the category growing except for hair styling. Hair masks, hair color, and other hair care including primers and treatments were among the fastest-growing areas of the market.
     
    Eyes are on holiday 2020 now too. In NPD’s newly released annual Holiday Purchase Intentions Report, Consumers plan to spend an average of $691 during the 2020 holiday shopping season, which is less than last year’s anticipated holiday spending, but on par with what their plans were in 2018.
     
    For the first time, free shipping was identified as the number one factor influencing where consumers decide to shop this holiday – surpassing special sale prices.
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