||Prestige Beauty Category Posts Highest Revenue Total in 15 Years
According to beauty market research conducted by The NPD Group, total U.S. prestige beauty products generated sales of $9.5 billion in 2011, an increase of 11 percent. In addition, the outstanding dollar results were achieved with all beauty categories surpassing pre-recession levels.
"In the 15 years that NPD has been tracking the prestige beauty industry, we have never seen growth like this -- especially across all categories," said Karen Grant, vice president and senior global industry analyst for The NPD Group.
Prestige beauty is defined as fragrance, makeup and skincare products sold mainly in U.S. department stores.
- Prestige fragrances experienced the strongest dollar and unit performance in 15 years; dollars grew 11% and units grew 7 percent.
- Juices (excludes fragrance ancillary or gift set items) grew 14 percent for both women and men, driving overall fragrance performance of +11 percent for women and +12 percent for men.
- Fragrance juices priced at a premium of $100 and above helped to propel growth for the category with unit gains of 45 percent versus a year ago.
- Fragrance launches were up 21 percent overall, driven by women's launches, which grew by 33 percent.
- Celebrity brands, specifically women's, were the winners in 2011 with gains of 57 percent.
- Prestige skincare continued to lead prestige beauty with growth of 14 percent in dollars and 9 percent in units.
- In 2011, all six segments posted dollar and unit gains versus 2010: Face ($ +13%, U +9%), Sets & Kits ($ +27%, U +16%), Body ($ +2%, U +2%), Hair ($ +16%, U +12%), and Sun ($ +11%, U +8%).
- Since 2000, anti-aging facial skincare has grown 16 dollar share points to account for 63 percent of prestige facial skincare, or $1.5 billion, a 17 percent increase over 2010.
- Products that have both anti-aging and brightening benefits almost doubled in share in the past four years.
- Premium face products priced at $75 and above experienced a 21 percent dollar increase and a 23 percent gain in units for the year.
"What is most intriguing about the acceleration in prestige beauty performance is the degree to which it stands in stark contrast to the overridingly lackluster consumer outlook. Historically, prestige beauty performance followed the trend of consumer sentiments; however, that is not the case today," said Grant.
- Prestige makeup saw its second year of increases in both dollars (+9%) and units (+6%). It was the first time in 15 years of prestige data reporting that all makeup segments grew in both dollars and units.
- Eye shadow grew 14 percent, the first increase since 2006, Lip color posted a 13 percent growth and Nail had the largest performance in both dollars (+67%) and units (+88%).
- Eye launches gained seven share points to be the largest launch segment in makeup with 39 percent dollar share.
- Premium price points outpaced overall prestige makeup performance. Premium saw the biggest increases in Face (+14%), Eye (+56%), and Sets (25%).
"Though consumer confidence has inched back to the 2008 pre-recession levels, it remains quite shaky. Yet, prestige beauty thrives. And although prestige beauty growth continues at both ends of the spectrum, it is the high-end, premium price points that experienced the strongest gains," she added.
(Source: The NPD Group, 03/01/12)
Click here to email to client
Back to Radio Sales Today
Click here to view Job Postings.
Special RAB Marketing Sessions to be Featured at NAB Show
You'll take home a wide range of money-making strategies by attending the Small and Medium Market Idea Exchange workshop, one of five timely sessions that will be presented by the Radio Advertising Bureau at the upcoming NAB Show, April 14-19 in Las Vegas.
This workshop is scheduled for Monday, April 16, from 2:30-3:45 PM in Room N239/241. The five RAB-sponsored seminars will be led by the Radio Advertising Bureau's Professional Development Group.
For more information on the NAB Show, the world's largest electronic media event, click here.