According to Circana, sales of cosmetics, fragrances and personal care products in the US continue to grow, mainly due to prestige products, while sales in the mass market remain stagnant.
According to the market research company Sales of prestige beauty products increased by 8% in the first half of 2024 and reaches 15.3 million US dollars.
Perfume sales driven by small format products
Perfumes are the fastest-growing prestige beauty category this year, with sales up 12% in the first half compared to the same period in 2023. According to Circana, sales are increasing at both the high and low ends of the prestige price spectrum: Eau de Parfums and Parfums continue to have the biggest impact on growth and rising prices, while more affordable products such as mini sizes and body mists are contributing to the category’s success.
In fact, sales of mini and travel products grew twice as fast as the overall fragrance category.
Especially among younger consumers, sales revenues of body mists and sprays with average prices below $25 are on trend and have more than doubled since the first half of 2023. Younger generations are also fueling the Dupe culture trendThis is a particularly bright spot in the mass perfume market, where private labels have grown by over 50% – many of which are touted as affordable copies of prestige and luxury brands.
Lip products exceed expectations
Makeup remains the largest category in the prestige beauty market in the U.S., with sales increasing 5% in the first half of 2024 compared to 2023.
The lip segment continued to beat expectations, with lip balms and oils posting double-digit growth. Less traditional forms of makeup also beat expectations outside the lip segment, including liquid blush, pencils, balms and liquid bronzers, stick foundation and stick eyeshadow. In the mass-market cosmetics section, lip gloss and liner were the biggest sales drivers, further demonstrating consumers’ focus on the lips, Circana noted.
Personal care products boost sales of skin care products
Through June, premium skin care sales increased 7% and it continues to be the fastest growing category in terms of units sold.
The body is the fastest-growing segment of the skincare market. According to Circana’s receipt-based checkout data, consumer spending on high-end personal care products increased 25% in the first half of the year, and there are 17% more shoppers in this market than last year.
Prestige hair products benefit from online sales
Hair product sales in the prestige market increased 10% (in dollars), with styling and treatments the fastest growing areas of the category.
The premium market continues to drive growth: Hair products with an average price above $30 grew three times as fast as lower-priced items and now account for 25% of unit sales in the category – compared to 15% just three years ago.
The prestige hair market also tells an interesting channel story, as it is the only beauty category where the majority of sales are made online. And in fact, the e-commerce channel shows no signs of slowing down, with sales growing at double digits.
“The beauty industry is experiencing an accelerating dichotomy, highlighted by the continued strong rise in prestige relative to the mass market.” noted Larissa Jensen, global beauty industry advisor at Circana.
