Posted: February 18, 2014
The NPD Group has released highlights of the U.S. prestige beauty market for its Q4 2013 Industry Pulse. According to the market researcher, in the fourth quarter of 2013, the U.S. prestige beauty industry grew 4% to $3.5 billion.
The NPD Group’s BeautyTrends report found Q4 category sales performance for the U.S. prestige beauty market up for makeup and skin care—an 8% increase (vs. Q4 2012) to $1.2 billion for Q4 2013 dollar sales and an 6% increase to $1 billion, respectively. Fragrance, however, decreased 2% versus Q4 2012 for Q4 2013 dollar sales of $1.3 billion.
Additionally, the average selling price of each category increased compared to Q4 2012, driven in part by growth in sales of premium-priced product offerings. The U.S. prestige beauty Q4 category average selling price performance, according to the BeautyTrends report, saw makeup at an average selling price of $26 in Q4 2013 (up 2% vs. Q4 2012), skin care at an average selling price of $43 in Q4 2013 (up 1% vs. Q4 2012), and fragrance at an average selling price of $70 for Q4 2013 (a 4% increase from Q4 2012).
“Last year closed on a positive note for the prestige beauty industry as a whole,” said Karen Grant, vice president and global industry analyst for The NPD Group, Inc. “Makeup and skin care continue to shine the brightest, and while holiday has traditionally been a fragrance-dominated sales period, the gap is closing between fragrance and makeup holiday sales volume. The premium segment is thriving in the U.S. and helped minimize the decline in fragrance.”