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