Make-up (+18%) and haircare (+22%) saw the strongest growth within US prestige beauty last year, which was the fastest-growing industry segment*. Greater spending from higher income consumers was just one of the factors driving growth in the market, which also saw an uptick in brick-and-mortar sales.
Prestige beauty in the US saw strong growth last year. Sales were up 15% vs 2021 to $27.1bn, according to The NPD Group. All segments (make-up, skincare, hair care and fragrance) witnessed double-digit increases.
NPD highlights that prestige beauty was the fastest-growing industry segment last year*, and the only one to record an uptick in year-on-year unit sales across both discretionary retail and consumer packaged goods categories.
“In more ways than one, prestige beauty had an epic year,” comments NPD Beauty Industry Advisor Larissa Jensen. “Regardless of whether consumer confidence was up or down, growth in the prestige beauty market remained strong.” She says that an increase in socialization, greater spending from higher income consumers, and wellness redefined to emphasize mental health “will continue to fuel positive performance this year.”
Fragrance a “standout category”
By category, make-up contributed the most sales revenue gains in 2022, says NPD. Prestige make-up sales in the US were up 18% last year. Lip products was the fastest-growing segment in make-up, with “sales surpassing pre-pandemic 2019 levels by double-digits,” says NPD. Lip gloss outperformed lipstick.
Haircare was the smallest, yet fastest-growing category last year, with sales up 22% driven by hair masks and targeted treatments.
NPD described fragrance as “a standout category in its own right”. Fragrance sales were up 11% last year, driven by higher-end artisanal juices and higher concentrations, such as parfums and eau de parfums.
Skincare sales increased 12% year-on-year in 2022. Growth of body products outpaced those of facial products three-fold, highlights NPD.
Mass and prestige sales combined, beauty products witnessed 11% revenue growth in the US in 2022. In prestige beauty, unit demand “remained strong”, and the share of brick-and-mortar retail increased.
A positive outlook for beauty
NPD’s Jensen says that prestige and mass markets combined, “the future outlook for overall beauty is a positive one”. She concludes: “In an industry steeped in emotion, consumers have demonstrated they are willing to continue to spend on beauty products. Beauty brings joy, which is a universal aspiration and will drive our industry’s resiliency in 2023.”
*across more than $4 trillion in US general merchandise consumer spending tracked by NPD and IRI