According to Circana, dollar sales in the U.S. luxury beauty industry will increase 14% year-over-year (YoY) to reach $31.7 billion in 2023.
In contrast, mass market beauty sales increased 6% year over year.
In the prestige channel, which includes US department stores and specialty beauty retailers, makeup was the fastest growing category based on sales, and skin care took the top spot as the fastest growing category based on unit sales. Analysts say only two categories in the mass market have grown in terms of unit sales: makeup and skin care.
Top performing lip balms, body creams, hair products and prestige fragrances
Lip makeup performed best within prestige makeup, growing by 31%, twice as much as the overall category, primarily driven by products such as tinted lip oils and balms. When it comes to prestige skincare trends, we have serums and creams. Body sprays, lotions, creams, and cleansers ranked highly in this category.
Sales of prestige fragrances also ended the year on a strong note. When you look at product trends, growth is happening at the other end of the spectrum. Highly concentrated fragrance products such as eau de parfum and parfum are also expensive and gained 3 share points in 2023. Meanwhile, low-priced products such as Mini/Travel gained 3 share points in 2023. The size and body spray attracted attention. Sales of women’s mini fragrances have increased five times as much as other sizes, and the size of the body spray market has nearly tripled since 2022. The mini trend is also showing up in gift sets, the fastest growing segment of the fragrance market. In 2023.
Hairstyling had the fastest growth of all prestige hair products, with dollar sales increasing 24%. This growth is largely due to innovation, with hair product launches more than doubling compared to 2022. Hair products were also the only beauty category that accounted for the majority of online sales, with e-commerce accounting for 52% of his sales volume.
“The beauty industry is doing well and the outlook remains positive for both the mass and prestige sides of the industry in 2024,” said Larissa Jensen, global beauty industry advisor at Circana. “While this achievement is remarkable given the tremendous growth experienced over the past two years, the industry should not rest on its laurels. Consumers continue to deal with economic pressures and change Flexibility, creative thinking and effective use of high consumer engagement are all part of a winning formula to drive continued growth.”
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