By: The NPD Group
The U.S. prestige beauty industry generated $22 billion in 2021, a 30% increase in dollar sales, versus 2020, according to The NPD Group. By category, fragrance outperformed all others in 2021 with sales up 49%, year-over-year, followed by hair products (up 47%), makeup (up 23%), and skincare (up 18%).
In 2021, the beauty industry saw continued growth from pandemic winners including perfumes, scented candles, facial exfoliators, nail care, and hair care products. At the same time, makeup foundation, hair styling products, and other segments of the market started to recover as consumers began returning to workplaces, events, and other social activities.
“The beauty industry is unique in its ability to instill self-confidence and change the way people feel,” said Larissa Jensen, beauty industry advisor at NPD. “These timeless abilities keep our industry relevant and important in the minds of our consumers — regardless of circumstances or lifestyle changes. As was the case across the retail world, the beauty market faced hurdles in 2020 but proved its resiliency in 2021.”
Putting your best face forward
In the spirit of consumers putting their best face forward to re-enter society, face makeup product sales, including foundation, primer, and tinted moisturizer, grew double digits, as did makeup-setting sprays and removers.
The makeup category benefited from a return to consumer interest in makeup artistry, with additional growth observed for cream and stick blushes and other products prevalently used in YouTube videos and other social media. To top that off, brands born from makeup artists and social influencers had the highest revenue gains among all the makeup brand types.
Within the hair category, hairsprays, gels, mousses, and other styling products returned to growth in 2021, with hair-styling product sales up 45%, versus 2020. The hair-styling segment is expected to rise another 15% in 2022. Growth will continue through 2024, as people continue to return to more social activities in the months and years ahead, according to new findings from the Future of Hair Report from NPD.
Leaving it to the experts
Core skincare product sales, including facial cleansers, creams, and serums, grew between 15% and 24%, versus 2020. Sales of targeted products, like eye and lip treatments, also increased. Clinical skincare brands contributed the highest revenue gains to the category. In 2021, clinical surpassed natural as the largest brand type in skincare, based on revenue.
Indulging in little luxuries
The fragrance category registered double-digit growth against both 2020 and 2019, as consumers looked to treat themselves. Sales of perfumes, colognes, and other fragrance juices increased by 61%, year over year, as sales of candles, reed diffusers, and other home scents grew by more than 20%. The fourth quarter accounted for 45% of fragrance category sales revenue in 2021, growing by 35% during the critical holiday selling season.
“As we move through 2022, the beauty companies that will thrive are those that harness the industry’s unique ability to spread joy, while also recognizing the opportunities of a changed consumer and retail environment,” added Jensen. “We can expect more change to unfold in 2022, but, along with these changes, new opportunities for the beauty industry will present themselves.”
###
For more information or to speak with Larissa, contact me at marissa.guyduy@npd.com
ABOUT THE NPD GROUP
NPD is a global market information company offering data, industry expertise, and prescriptive analytics to help our clients understand today’s retail landscape and prepare for the future. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar, e-commerce, and B2B. We have services in 19 countries worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, home improvement, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, and video games. For more information, visit npd.com. Follow us on Twitter: @npdgroup.
Categorized in: Trends/Insights