Mass market beauty sales increased 6% year over year.
The beauty industry is doing well on both ends of the spectrum.
According to Circana, dollar sales in the U.S. luxury beauty industry will increase 14% year-over-year 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. In the mass market, only two categories grew on a unit sales basis: makeup and skin care.
Circana’s receipt-based Checkout data reveals interesting demographic purchasing behaviors that align with the growing interest in premium skin care among tweens and teens. She is 45 to 54 years old and has a family of four, including children under 18, who are gaining market share. -old.
Sales of prestige fragrances also ended the year on a strong note. If you look at product trends, growth is happening at opposite ends of the spectrum. Highly concentrated fragrance products, including similarly high-priced eau de parfum and parfum, gained 3 share points in 2023. Meanwhile, lower priced products such as mini/travel sizes and body sprays gained traction. The mini trend also appeared 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%. Hair is also the only beauty category that accounts for the majority of sales online, with e-commerce accounting for 52% of his sales.
“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.”