According to The NPD Group, the post-pandemic prestige beauty rebound continues. Following Q1 2022, sales revenue of $5.3 billion represented a 19% increase versus Q1 2021; the second quarter of 2022 saw US prestige beauty sales reach $6 billion, a 16% increase versus Q2 2021.
"In addition to its strong revenue growth, beauty is the only industry with rising unit sales so far this year across the 14 discretionary retail industries tracked by NPD in the US—a testament to its resilience considering the beauty industry reverted to 2015 sales levels in 2020," said Larissa Jensen, beauty industry advisor, The NPD Group.
- At $2 billion, makeup sales revenue continued to be lower than pre-pandemic 2019 levels, but the makeup category surpassed pre-pandemic unit sales by 1% in Q2 2022, versus the same period in 2019.
- Lipstick sales revenue increased by 28% in Q2. From January through June, lip products were the fastest-growing makeup segment and experienced softer declines than the rest of the makeup category compared to pre-pandemic 2019.
- Fragrances saw $1.5 billion in sales a 13% increase.
- The average price in the fragrance category is currently 25% higher than it was three years ago. In Q2 alone, the average price for fragrances increased by 6%, versus 2021, double the rate of the rest of the beauty industry. "While inflation plays a role, the elevated pricing for fragrances is also about an increase in purchasing higher-priced product," said Jensen.
- Gift sets made a strong comeback during Mother's Day and Father's Day 2022, gaining market share during these key holiday periods versus last year. This shift was unique to these gifting periods, but could be a positive indicator for the holiday season ahead.
- Skincare sales reached $1.7 billion in Q2, representing a 12% increase.
- Body care products continue to outpace facial skincare in terms of sales growth, and the category is becoming a more prominent focus in the skincare market. "Skincare brands are upping the ante, by using ingredients like vitamin C, retinol, and algae that are traditionally found in facial products," said Jensen.
- Q2 has traditionally been the peak selling season for sunscreen, although sales have been growing year-round. In Q2, sunscreen sales grew by 51%, versus last year.
- Haircare continues to be the smallest yet fastest-growing category in the beauty market, with sales of $781 million, but the category is seeing a 24% increase.
- In Q2, sales revenue grew across almost all segments, including haircare, styling, and color.
- In the first half of 2022, clean hair brands comprised almost one-quarter of the hair category universe, which is a 5-point gain from the same period last year.
Jensen said, "Premiumization is happening among the three categories performing the best; while fragrance and hair's average prices are up due to consumer spending on higher-priced, luxury items, makeup—which has traditionally been one of the most promotional beauty categories—is experiencing a pricing rise due to less promotions."