By Larissa Jensen, Vice President, Industry Advisor at The NPD Group
Q3 2022 INDUSTRY PULSE
In the third quarter (Q3) of 2022, U.S. prestige beauty industry sales revenue reached $6 billion, a 15% increase versus Q3 last year, according to The NPD Group.
U.S. Prestige Beauty Category Sales Performance
Based on revenues, July-September 2022 versus 2021
| Category | Q3 2022 | % Change vs. Q3 2021 |
| Makeup | $2.1B | 15% |
| Skincare | $1.7B | 14% |
| Fragrance | $1.3 B | 11% |
| Hair | $853.8M | 23% |
Source: The NPD Group / U.S. Prestige Beauty Total Measured Market
“Unit sales and revenue are both growing by double digits for beauty products sold in the prestige market, indicating that consumers are indulging in beauty products this year,” said Larissa Jensen, beauty industry advisor, The NPD Group. “Fragrance sales will grow this holiday season, albeit slower than in years past, and makeup, skincare, and hair care should also shine during the holidays, maintaining the strong sales performance these categories have experienced so far this year.”
Makeup:
- Makeup sales have officially surpassed pre-pandemic 2019 levels, with growth in Q3 unit sales and revenue, versus the same period in 2019.
- As a testament to the viability of the “Lipstick Index,” lip makeup was the fastest growing makeup segment in Q3, with sales revenue rising by 32%.
Skincare:
- Clinical brands drove the sales gains in the skincare market, followed by natural brands.
- Brick-and-mortar stores continue to bring in most of the skincare sales gains, but the online channel still accounts for nearly 40% of sales.
Fragrance:
- Growth drivers are a combination of continued consumer demand and increased average prices.
- Average prices for fragrances grew faster than other beauty categories, fueled by consumers opting for higher concentration products and luxury brands that command a higher price point.
- While the online channel continues to expand, physical stores remain the most important channel for the fragrance category, accounting for over three-quarters of U.S. sales.
Hair:
- Hair is the only category with a nearly even channel split between in-store and online sales.
- As consumers continue to prioritize hair health, products with strengthening and restoration benefits are outpacing overall hair category growth.
- Hair product sales continue to grow despite the category becoming less promotional. Over the year-to-date through September 2022 period, the category experienced a 2-point decrease in the share of units sold on promotion.
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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, food service, 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