Prestige beauty remains resilient as sales continue to rise, even while recession looms. According to data from The NPD Group, prestige beauty sales in the US grew to $6 billion in the third quarter, a 15% increase over Q3 2021.
Brick-and-mortar skincare sales saw the most growth, but online sales still account for 40% of sales, except for haircare, which has a nearly even channel split between online and in-store revenue.
"Unit sales and revenue are both growing by double digits for beauty products sold in the prestige market, indicating that consumers are indulging in beauty products this year," said Larissa Jensen, beauty industry advisor at The NPD Group, in a statement. "Fragrance sales will grow this holiday season, albeit slower than in years past, and makeup, skincare, and haircare should also shine during the holidays, maintaining the strong sales performance these categories have experienced so far this year."
Jensen said she forecasts cross-category performance to remain unfettered by macroeconomic pressures through the holidays, a testament to Leonard A. Lauder's "lipstick index," which speculates that cosmetic sales rise during times of economic hardship as consumers look to affordable indulgences.
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