NPD Group presents 2013 review of beauty sales at 'Hot off the Press' event
PORT WASHINGTON, N.Y. — Total beauty sales within the U.S. mass channel rose 1% in 2013, versus 2012, with makeup experiencing the greatest growth at 2%, according to The NPD Group, citing IRI data.
The NPD Group, a global information company, presented the beauty industry’s first look at 2013 global year-end results for skin care, makeup, and fragrance at their 14th annual “Hot Off The Press” event at the Union League Club in New York in late January.
Cosmetic Executive Women, a professional organization in the beauty, cosmetics, fragrance and related industries, partnered to host the event for the second consecutive year.
Also in the mass channel, sales of skin care rose 1%, but fragrance struggled with a 6% decline in dollars compared with 2012, NPD stated.
In prestige beauty, the industry grew 5% in dollar sales in 2013, compared with 2012. Skin care and makeup each experienced healthy gains of 7%, while fragrance dollars remained flat last year.
“Beauty is among a handful of industries showing growth in 2013,” stated Karen Grant, VP and senior global industry analyst for The NPD Group. “Consumers continue to struggle with lower income levels, but the global economic environment continues to stabilize. The social trends all around us indicate an improving outlook and a willingness to invest when the associated risk is low; this is a real opportunity for our industry.”
“The direction today is for flawless appearance and self-assured choices. The look is flawless, with perfected faces, defined eyes, and evolved anti-aging applications. From primary care focused skincare, to bold red and even blue or green lips, and artisanal fragrances, the feel is self-assured,” added Grant. “However, the attitude across the board reflects a new era of immediacy, looking for the quick fix of alphabet creams, masks, and illuminators, and the instant indulgence of classic and couture scents.”
Value is important to consumers, but premium-priced offerings are thriving is U.S. prestige beauty. Even though sales for the total prestige fragrance category were flat, fragrances priced $100 and over grew 30% in dollars, while face makeup priced at $60 and up increased 28%, and skin care for the face gained 15% in dollar sales compared with 2012. In addition to the premium segment, the direct-to-consumer channel helped to drive growth for the beauty industry in 2013, growing 19%.
“The beauty industry has a unique opportunity to seize the moment, embracing the evolution and blurring of lines at retail, category experience, and brand leadership. Prestige has the advantage of offering more of the quality of life experiences in beauty. When we give consumers the products that fit them, their wants, and their needs for results ‘now’, we deliver a winning combination,” Grant stated.