Heading into the holiday season, the U.S. prestige beauty market grew by 7% to USD 22.8 billion this year through September, while mass market experienced a 2% increase in sales, versus the same period last year, according to market research firm Circana.
Lip products soar in makeup
Makeup, the largest category within the prestige segment, grew by 5% in both dollars and units sold. The lip segment, in particular, continued to outperform, with a remarkable 21% increase in dollars and a 23% increase in units sold. According to Circana, this growth can be attributed to the rising popularity of tinted lip balms and oils.
Blush is proving to be another makeup consumer favorite this year, with sales up double-digits.
On the other hand, makeup sales are still declining in the mass market.
In skincare, consumers move towards mid-range products
In the skincare category, mid-range or masstige skincare brands are outpacing prestige skincare brands – growing six times faster.
“We see how this narrative is unfolding when we explore prestige market trends for this category. Skincare was the softest growing category across U.S. department and beauty specialty stores through the third quarter, with dollar sales up 3%. This performance was driven by a decrease in average pricing, as units sold grew faster – indicating that consumers are increasingly favoring lower-priced skincare product in prestige outlets,” Circana says.
Hair styling drives sales in the prestige hair category
The prestige hair category continues to shine, with dollar sales up 8% through September and units also growing. Hair wellness products, such as heat protectants and scalp care, experienced notable growth and outpaced the overall category. Hair styling was the fastest-growing segment, and also the largest contributor to the category’s sales gains.
Fragrance is the fastest growing category
In the prestige channel, fragrance continues to be the fastest-growing category thus far in 2024. According to Circana, year-over-year sales soared by 14% in dollars and 12% in units through September.
Higher fragrance concentrations played a crucial role in driving growth. Luxury brands experienced a 15% increase in sales, slightly faster than the overall market.
“Traditionally, the fourth quarter accounts for over 40% of annual sales in both channels. Early indicators in the third quarter align with forecasts for positive performance,” adds Circana.
Overall U.S. consumer sentiment as it relates to the holiday shopping season is improved compared to the past two years, according to Circana’s 2024 Holiday Purchase Intentions Report.
