According to The NPD Group, premium beauty in Canada outpaced US sales trends in 2022, growing 25% compared to 2021, while the US clocked growth of 15% for the same period. Beauty was one of Canada's top-performing sectors, with sales reaching $3.4 billion last year. Overall market prices continued to increase, with the average price of beauty products rising by 1%, including promotions.
"With a highly anticipated recovery, the Canadian beauty industry performed impressively last year," said Alecsandra Hancas, Canadian beauty industry analyst at NPD. "Even in the face of higher prices and overall economic uncertainties, consumers were unfaltering. Consumer demand for prestige beauty products remained high. These results are a testament to the importance of beauty products and their important role in making consumers feel good."
The three fastest-growing product segments of eau de parfums, hair products, and makeup combined contributed nearly one-quarter of total beauty industry sales revenue gains in 2022.
Online sales continued to grow at the channel level in 2022, but brick-and-mortar store sales were the big story. Canadians' return to in-store shopping was evident, as store sales grew by 34% and accounted for most of the industry's gains last year.
"Looking ahead, we anticipate another year of growth for the Canadian beauty market in 2023, led by increased demand, product innovation, and experiential retail," said Hancas. "Canadians are excited to get back into stores to interact with brands and touch, feel, and test products. They are also getting out more again, which means putting their best face forward."
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