11.15.22
Prestige beauty is riding high as the holiday season approaches. In the third quarter of 2022, US prestige beauty industry sales revenue reached $6 billion, a 15% increase versus Q3 last year, according to The NPD Group.
“Unit sales and revenue are both growing by double digits for beauty products sold in the prestige market, indicating that consumers are indulging in beauty products this year,” said Larissa Jensen, beauty industry advisor, The NPD Group. “Fragrance sales will grow this holiday season, albeit slower than in years past, and makeup, skincare, and hair care should also shine during the holidays, maintaining the strong sales performance these categories have experienced so far this year.”
US Prestige Beauty Category Sales Performance
Source: The NPD Group / U.S. Prestige Beauty Total Measured Market
Makeup sales have officially surpassed pre-pandemic 2019 levels, with growth in Q3 unit sales and revenue, versus the same period in 2019, according to NPD. As a testament to the viability of the “Lipstick Index,” lip makeup was the fastest growing makeup segment in Q3, with sales revenue rising by 32%.
In skincare, clinical brands drove the sales gains in the skincare market, followed by natural brands. Brick-and-mortar stores continue to bring in most of the skincare sales gains, but the online channel still accounts for nearly 40% of sales.
Growth drivers in fragrance are a combination of continued consumer demand and increased average prices, according to NPD. Average prices for fragrances grew faster than other beauty categories, fueled by consumers opting for higher concentration products and luxury brands that command a higher price point. While the online channel continues to expand, physical stores remain the most important channel for the fragrance category, accounting for over three-quarters of US sales, noted NPD.
Hair is the only category with a nearly even channel split between in-store and online sales, found NPD. As consumers continue to prioritize hair health, products with strengthening and restoration benefits are outpacing overall hair category growth. According to NPD, hair product sales continue to grow despite the category becoming less promotional. Over the year-to-date through September 2022 period, the category experienced a 2-point decrease in the share of units sold on promotion.
“Unit sales and revenue are both growing by double digits for beauty products sold in the prestige market, indicating that consumers are indulging in beauty products this year,” said Larissa Jensen, beauty industry advisor, The NPD Group. “Fragrance sales will grow this holiday season, albeit slower than in years past, and makeup, skincare, and hair care should also shine during the holidays, maintaining the strong sales performance these categories have experienced so far this year.”
US Prestige Beauty Category Sales Performance
(Revenues, July-September 2022 v. 2021)
Category | Q3 2022 | % Change vs. Q3 2021 |
Makeup | $2.1 billion | 15% |
Skincare | $1.7 billion | 14% |
Fragrance | $1.3 billion | 11% |
Hair | $853.8 million | 23% |
Makeup sales have officially surpassed pre-pandemic 2019 levels, with growth in Q3 unit sales and revenue, versus the same period in 2019, according to NPD. As a testament to the viability of the “Lipstick Index,” lip makeup was the fastest growing makeup segment in Q3, with sales revenue rising by 32%.
In skincare, clinical brands drove the sales gains in the skincare market, followed by natural brands. Brick-and-mortar stores continue to bring in most of the skincare sales gains, but the online channel still accounts for nearly 40% of sales.
Growth drivers in fragrance are a combination of continued consumer demand and increased average prices, according to NPD. Average prices for fragrances grew faster than other beauty categories, fueled by consumers opting for higher concentration products and luxury brands that command a higher price point. While the online channel continues to expand, physical stores remain the most important channel for the fragrance category, accounting for over three-quarters of US sales, noted NPD.
Hair is the only category with a nearly even channel split between in-store and online sales, found NPD. As consumers continue to prioritize hair health, products with strengthening and restoration benefits are outpacing overall hair category growth. According to NPD, hair product sales continue to grow despite the category becoming less promotional. Over the year-to-date through September 2022 period, the category experienced a 2-point decrease in the share of units sold on promotion.