Sales of cosmetics, fragrances and personal care products continue to grow in the U.S., mainly driven by prestige products while mass market sales remain flat, said Circana.
According to the market research firm, sales of prestige beauty products increased by 8% in the first half of 2024, reaching $15.3 million.
Fragrance sales driven by small-sized products
Fragrance is the fastest-growing prestige beauty category so far this year, with dollar sales up 12% in the first half versus the same period in 2023. According to Circana, sales are growing at both the higher and lower ends of the price spectrum within prestige: eau de parfums and parfums continue to drive the greatest impact to growth and rising prices, while lower-priced products including mini sizes and body sprays are contributing to the category’s success.
In fact, units sold for mini- and travel-sized product grew at double the rate compared to the overall fragrance category.
Largely trending among younger consumers, body mists and sprays, with average prices under $25, more than doubled in sales revenue since the first half of 2023. Younger generations are also fueling the dupe culture trend, which is a particular bright spot in the mass fragrance market, where private label brands grew more than 50% — many brands of which are touted as affordable duplicates of prestige and luxury brands.
Lip products outperform
Makeup remains the largest category in the prestige beauty market in the U.S. Sales grew by 5% in the first half of 2024, compared to 2023.
The lip segment continued to outperform, with double-digit growth led by lip balms and oils. Less traditional makeup forms are also outperforming outside of the lip segment, including liquid blush; stick, balm, and liquid bronzer; stick foundation; and stick eye shadow. In the mass market cosmetics aisle, lip gloss and liner were top sales gainers, further illustrating the consumer focus on the lips, found Circana.
Body products drive skin care sales
Through June, prestige skincare dollar sales increased by 7% and it remains the fastest-growing category based on units sold.
Body is the fastest-growing segment of the skincare market. According to Circana’s receipt-based Checkout data, first half consumer spending on prestige body products increased by 25% and there are 17% more buyers in this market than there were last year.
Prestige hair products benefit from online sales
Hair product sales in the prestige market increased by 10%, based on dollars, with styling and treatments the fastest-growing areas of the category.
Premiumization continues to drive growth; hair products with average prices above $30 grew at three-times the rate of lower priced items and now account for 25% of unit sales for the category – compared to 15% just three years ago.
The prestige hair market also tells an interesting channel story, as the only beauty category with the majority of sales happening online. And, in fact, the e-commerce channel is showing no signs of slowing, with sales growing double digits.
“An accelerated bifurcation is emerging in the beauty industry highlighted by the continued strong growth in prestige in relation to the mass market,” noted Larissa Jensen, global beauty industry advisor at Circana.
