BB Creams are the Balm

BB Cream Market Looks Promising and Poised for Growth

According to a brand new report by The NPD Group, Inc., a leading market research company, BB Creams* also referred to as ‘blemish balms’ or ‘beauty balms’ have grown significantly in sales in the past several months. The relatively new product is quickly catching the fancy of a small segment of U.S. women. In the 12 months ending March 2012, BB creams sold in U.S. department stores generated close to $9 million according to NPD BeautyTrends®.

Women tell NPD that while they expect BB Creams to provide skincare and makeup benefits, they want to understand more about the product and how it works. According to NPD, about 8 in 10 beauty shoppers like beauty products that offer multiple benefits, and that rises to just over 9 in 10 for BB Cream purchasers. The top five benefits expected from a BB Cream include: natural looking coverage (52%), moisturizes/hydrates skin (47%), nourishes/treats skin (42%), provides SPF sunscreen protection (42%), and improves skin texture (38%).

Although the incidence of purchasing BB Creams is currently very small (2% of total beauty shoppers) the majority of purchasers tell NPD they’re extremely or very satisfied with their last BB Cream purchase, and 77 percent express positive repurchase intent. According to the report, almost 4 in 10 beauty shoppers overall say that they would consider buying a BB Cream in the future.

“About half of all beauty shoppers are sitting on the fence, saying they may or may not buy BB Creams in the future. Why does that matter? Almost 7 in 10 BB Cream purchasers have replaced either a makeup or skincare product with a BB Cream. Even though usage is low right now, as more brands enter the market and the category grows, cannibalization could become a much larger challenge,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.

“Messaging that clearly distinguishes the benefits of and usage occasions for BB Creams versus other facial products could help ensure the coexistence of various products in a women’s beauty regimen. Figuring that out could make the difference in whether BB Creams gain traction more broadly or not,” ended Grant.

*BB Creams also referred to as ‘Blemish Balms’ or ‘Beauty Balms,’ are multi-functional products that combine the functionality of primers, SPF and moisturizers, along with the anti-aging benefits of skin serums.

Prestige Beauty Up Double Digits in 2011

At its annual “Hot off the Press” event, held January 30 at the Plaza Hotel in New York City, The NPD Group revealed 2011 year-end results for skin care, makeup, and fragrance. According to NPD, the total U.S. prestige beauty industry (products sold mainly in U.S. department stores) increased double digits—11%—in dollar sales in 2011 over 2010.


Globally, by country, sales were strongest in Argentina (up 33%), followed by China (22%), Mexico (15%) and the UK (9%).
In 2011, skincare and fragrance sold in U.S. department stores both posted double-digit dollar growths of 14 and 11 percent respectively, while makeup grew a healthy nine percent, compared to 2010.


“In the U.S., UK, and China, prestige beauty is enjoying one of the most robust sales periods ever,” said Karen Grant, vice president and senior global industry analyst, The NPD Group—and a member of Beauty Packaging’s Board of Advisors. “In the U.S., for example, beauty sales in both the mass and prestige channels were positive month after month in 2011. And while both channels were positive, prestige beauty reigned supreme. From the stellar increases in prestige skincare to the continued gains in makeup, to the double-digit rebound of fragrance, prestige beauty is experiencing a time of unprecedented growth.”


“In continental Europe,” Grant continued, “where the prestige market is more mature, growth is more tempered, and performance among the categories has not been as dynamic as in the U.S. or U.K., but nonetheless, prestige beauty managed to flourish thanks to brand media investment, bigger in-store animation, and price promotions.”


In addition, the U.S. Food/Drug/Mass channel experienced a 4% increase in sales for total beauty in 2011, versus 2010. Makeup sales posted the biggest increase at 8%, followed by skin care at 3%, while fragrance sales declined 5% in dollar sales, compared to 2010. In National Chain stores, fragrance sales grew 5%.


Source: Beauty Packaging