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The NPD Group Reports on the State of the U.S. Prestige Beauty Industry
PORT WASHINGTON, N.Y.-(Business Wire)-February 13, 2008 - The NPD Group, leading consumer and retail information provider, reports the U.S. prestige beauty industry* grew by two percent in 2007 vs. 2006. -0- *T Prestige Beauty Industry Dollars and Growth for 2007 Dollars Growth 2007 vs. 2006 ————————————————————————————————— Total Beauty $8.9B 2% ————————————————————————————————— Makeup $3.4B 4% ————————————————————————————————— Fragrance $2.94B -1% ————————————————————————————————— Skincare $2.5B 4% ————————————————————————————————— The NPD Group/Beauty Trends 2007 *T
Makeup
Makeup reigns supreme in the prestige beauty industry with 38 percent of the market share, up from 36 percent in 2003. Two out of every five dollars spent on prestige beauty products go to makeup. Dollars rose to $3.4 billion, an increase of almost half a billion dollars or 17 percent in the last five years. Across the different segments in makeup, the lip segment ended the year down two percent in dollars, but the rest of the segments saw growth. The face segment, which makes up 46 percent of prestige makeup dollars, was up four percent and driven by foundation. The eye segment was the second biggest leader of growth, making up 29 percent of the dollars and growing five percent since the prior year. In the eye segment, mascara held court with at least seven months of double digit growth.
"During challenging economic times in 2007, the prestige beauty industry managed to rise above the negatives," said Karen Grant, The NPD Group senior beauty industry analyst. "Women and men are still willing to spend money on products that make them look and feel better. Looking ahead, we do see opportunities with products, like organic/natural products, which are resonating with beauty consumers of all ages. We have seen astronomical growth over the past few years with more natural brands and products hitting the marketplace and we expect to see this continue," said Grant.
Skincare
Americans will never stop searching for the perfect solution to look younger and improve their skin. Skincare products, which include face, body, sun and hair products, make up 28 percent of all prestige beauty dollars and were up four percent in 2007. Sixty percent of prestige skincare sales were spent on facial products that tout anti-aging benefits. While basic skincare was down one percent, anti-aging products** drove growth. They totaled $1.2 billion in sales for 2007, up five percent from a year ago. Since 2003, dollar volume for anti-aging products have grown by 28 percent.
Fragrance
Prestige fragrances make up about one-third (33%) of the beauty industry dollars. At $2.94 billion, fragrance dollars are back to levels last seen in 2003. Men's and Women's fragrances were both down one percent in 2007 vs. 2006. The market is flooded with new launches and scores of brands, but last year consumers seemed to return to classics in women's fragrances. Sales of existing women's brands, brands that have been on the market since at least 2006, grew by two percent, totaling $1.7 million, close to $31 million more than a year ago. -0- *T Top 5 Total Prestige Fragrances Acqua Di Gio ——————————————————————————————————— Beautiful ——————————————————————————————————— Coco Mademoiselle ——————————————————————————————————— Chanel No. 5 ——————————————————————————————————— Cashmere Mist ——————————————————————————————————— *Prestige beauty - products sold mainly at U.S. Dept. stores **Anti-aging benefits include: anti-aging, wrinkle reduction, firming/lifting *T
About The NPD Group, Inc.
NPD's BeautyTrends(R) information has tracked the prestige beauty industry for a decade. The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries.
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