Circana data for Q1 confirmed Ulta Beauty CEO Dave Kimbell's sentiment of a category slowdown after several years of strong growth. According to Circana, US prestige beauty industry saw revenue grow 9% in the first quarter, compared to the same period in 2023, while mass-market beauty sales increased just 2% year over year.
“The beauty industry has had unprecedented double-digit growth year-over-year-over-year, especially in prestige,” said Larissa Jensen, Global Beauty Industry Advisor at Circana. “The expectation has always been that at some point, the industry performance would soften. That’s what’s happening.”
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“The slowdown in growth that we are seeing in the beauty industry is a reflection of an industry stabilizing after strong double-digit performance for the past two years,” said Jensen. “But we should not underestimate its strength, as sales grew by over $600 million in Q1. There is a lot of excitement in beauty, from trending brands and new product launches to growing engagement from younger consumers. With Mother’s Day and Father’s Day on the horizon and summer activities drawing near, products that make us look and feel good will continue to be top of mind.”
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