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USA: The prestige skincare category drives beauty industry growth

The skincare category continues to drive growth of the U.S. beauty industry. According to a new report by The NPD Group, most U.S. women (90%) use makeup with skincare benefits, without sacrificing their skincare regimen.

Consumer expectations of makeup products have heightened as a result of skincare’s influence on format and efficacy. Photo: © Anatolii Riepin / shutterstock.com

Consumer expectations of makeup products have heightened as a result of skincare’s influence on format and efficacy. Photo: © Anatolii Riepin / shutterstock.com

According to recent findings from The NPD Group’s 2018 Makeup In-Depth Consumer Report, nearly all U.S. women using makeup, or 90 percent, reported using makeup with skincare benefits. However, the usage of these products does not appear to be replacing or cannibalizing consumers’ skincare routines. Indeed, according to the market research firm, two-thirds of women stated they use these makeup products in addition to separate skincare offering the same benefits.

Makeup continues to perform well, as our study found that more women are using it and they are also using more products, on average, in a typical day compared to two years ago. At the same time, the consumer mindset today places greater emphasis on taking care of the skin in order to prevent flaws, rather than covering up flaws as they appear,” said Larissa Jensen, executive director, beauty industry analyst at The NPD Group. “Consumer expectations of makeup products have heightened as a result of skincare’s influence on format and efficacy.

A continuation of the trend that began in 2017, the prestige skincare category is driving U.S. beauty industry growth so far this year. Year-to-date through May 2018, skincare sales grew by 13 percent, with segments including facial moisturizer, age specialists, and eye treatments contributing the most dollars gained. Makeup, which continues to be beauty’s largest category, experienced a 1 percent increase in sales during these months, driven by concealer, mascara, and foundation. [1]

Skincare has created a winning story around ingredients, innovation, wellness, and great skin at any age. Makeup brands and manufacturers are tearing a page from skincare’s playbook by leveraging skincare positioning in their own product offerings. This is a step in the right direction, as I expect the interaction and shared learning’s between these two emotional categories will prove mutually beneficial,” concluded Jensen.

Footnotes

[1] Source: The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market, January-May 2018. Coinciding with the National Retail Federation calendar which includes an extra 53rd week in 2018, dollar sales and trends have been adjusted to account for the extra week.

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