NPD: Sales of U.S. prestige beauty up 5% in Q2

NEW YORK — Sales of U.S. prestige beauty products increased during second quarter 2014, according to the NPD Group, and the momentum is expected to continue.



In second quarter 2014, sales of U.S. prestige beauty products were $2.5 billion, a 5% increase, with sales growth across each of the three primary categories.



“The robust performance of prestige beauty in the second quarter is quite encouraging. Primary prestige segments continue to be market drivers, but the industry is realizing the opportunities and revenue that lie among smaller, more specialized segments,” saidd Karen Grant, VP and global industry analyst at the NPD Group. “With the current momentum as a platform, we expect the next two quarters to be positive, leading to annual performance a bit softer, but in line with the low- to mid-single-digit growth trend of 2013.”



Face products were the growth drivers in makeup, accounting for nearly half of category sales and outpacing category growth slightly. Eye and lip makeup combined account for nearly 46% of the category dollar sales, almost as much as face makeup, and their combined growth was greater than their face counterparts. Nail was the only makeup segment with sales declines during the quarter, according to the NPD Group.



As in makeup, face products were skin care’s growth drivers, representing more than one-third of the sales and setting the pace of the category performance. Sets/kits represent just 10% of skin care dollar sales, but their 4% growth outpaced the category.



Juices account for 65% of total prestige fragrance sales, and they continue to drive the category with 7% dollar growth compared with the year-ago period. Fragrance ancillary sales add to the prestige category growth with a 3% increase in dollar sales, though at just 6% of the market.



“Consumers are looking for something new and fresh with each season. Delivering on this demand while sustaining engagement with established products is the balancing act that will continue to prove its benefits for the prestige beauty industry,” Grant said.