Total US prestige beauty sales declined 3 percent in 2008 versus 2007, according to The NPD Group, a market research company.

Total U.S. Prestige Beauty [1] Industry:

{{}} Dollars % Change 2008 vs. 2007
Total Beauty $8.38 Billion -3%
Total Makeup $3.2 Billion -3%
Total Fragrance $2.68 Billion -6%
Total Skincare $2.4 Billion flat

The decline in the U.S. prestige beauty industry was driven primarily by fragrance for both genders (down 5% in women’s and 8% in men’s fragrances). However, according to NPD, sales of higher priced gift sets (those priced from $60 to under $100) were a bright spot for the fragrance category.

While fragrance sales have struggled for the past few years, the decline in makeup was most surprising. Annual 2008 marked the first time makeup products posted a decline, dropping 3 percent in dollars and 6 percent in units. All segments in the makeup category showed declines including face, eye, and lip segments.

One bright spot for makeup was natural, which experienced a surge in prestige offerings in the past year.

Prestige skincare was the only category to stay somewhat afloat, staying even with last year on a dollar basis, and capturing an additional share point over 2007, of total prestige beauty sales.

Lastly, natural/spa/wellness skincare brands showed the strongest dollar growth of the distinctive brand types, up 6 percent versus year prior to $304 million.