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B BOOK 2024
The Global State of Beauty and Outlook from Circana
Beauty had a big 2023
The beauty industry keeps defying expectations! It was retail’s shining star in 2023, compared to all general merchandise and CPG industries we track. Some of the business-critical topics we explored with our clients throughout the year included:
Premiumization in luxury beauty
Evolution of brands
Strategies for critical shopping and promotional periods
Lori Monaco
President, U.S. Beauty
“It was a year of rebalance for many facets of retail in 2023, but amid macro-level change, beauty’s resiliency has been a constant.
A hotbed of innovation, beauty is increasingly intertwined with industries such as technology, entertainment, science, and media. Meeting consumers at the crossroad, Circana is surfacing insights on the intersection of shoppers’ evolving 360-degree needs and spending choices, through the most comprehensive view of the Complete Consumer™. We are excited to share predictions about how the beauty industry, and its consumer, will evolve.”
Constance Leroy
Senior Vice President, Europe Beauty
“In 2023, we saw innovative brands’ strategies drive value for consumers.
Consumers reset their priorities creatively in a climate of economic pressures, devoting wallet share to luxury beauty indulgences while trading down elsewhere. Beauty brands can be inspired by this consumer behavior and adjust their 2024 strategies to continue pursuing the market’s momentum. Our beauty insights seamlessly combine beauty expertise, granular data, and AI-powered analytics to help marketers go beyond the obvious.”
PERFORMANCE HIGHLIGHTS
State of the Beauty Industry
Globally, consumers showed resilience when it came to spending on beauty products in 2023, even as they pulled back on other purchases. In nearly every regional market, 2023 marked the third year of double-digit growth in prestige beauty.
Mass beauty dollar performance was positive in every major region we track, apart from New Zealand. And in South America, growth was stronger in mass than in prestige beauty. At a regional level, the topline takeaway is that sales performance was mixed, but prestige has trended stronger over time.
Prestige Beauty Sales Performance by Region
Countries have responded to economic challenges in their own ways. But as we have seen, consumers have continued investing in beauty. They have shown they want indulgence and luxury products at affordable price points. We also see that seasonal occasions and retailer promotions, tailored to local audiences, are key prestige beauty sales drivers. And from local and masstige brands to cultural influences and the e-commerce effect, the beauty landscape is changing as new brand players break ground. See the industry’s unprecedented global performance:
North America
+15%
Skincare +15%
Makeup +15%
Fragrance +13%
Hair +15%
Europe
+11%
+10
+16%
+9%
+14%
South America
+27%
+24%
+30%
+29%
+1%
China**
+15%
+15%
+14%
+5%
+28%
**China is e-commerce only
Source: Circana, BeautyTrends®, prestige markets, U.S., Canada, Mexico, France, U.K., Spain, Italy, Germany, 2023 vs. year ago
Source: Circana, BeautyTrends®, prestige markets, Peru, Chile, Argentina, Brazil, China, 12 months ending November 2023 vs. year ago
Global Luxury Performance
Demand of luxury performed behind the market in most countries except for China, Canada, Brazil, and Peru.
Luxury Unit Performance vs Total Beauty
■ Luxury Beauty ■ Total Beauty
Source: Circana, BeautyTrends®, prestige markets, U.S., Canada, Mexico, France, Spain, Italy, UK, Germany, January – December 2023
Source: Circana, BeautyTrends®, prestige markets, Brazil, Argentina, Chile, Peru, China E-commerce (B2C + Travel Retail + Douyin), January – November 2023
Luxury based on divisions 2x the ASP of Total Beauty
Wellness in the U.S.
Consumer healthcare is a $114B category, fueled by strong e-commerce growth in the U.S.
Channel Dynamics in Consumer Healthcare
+5%
Total Omni
+13%
E-commerce
+2%
Brick-and-mortar
Source: Circana, Total Store View E-market Insights, CHPA (Consumer Health Products Association) defined, brick-and-mortar = Total U.S. Multi-outlet
(Geography/Channel), last 52 weeks ending December 3, 2023, % change vs. YA
Consumer Healthcare Segment Performance and Drivers
+6%
Traditional
over the counter
driven by gut health
+3%
Nutritionals
driven by mineral supplements
+8%
Personal care
driven by deodorant
Flat
Medical devices
driven by home testing kits
Source: Circana, OmniMarket™ Core Outlets, MULO (brick-and-mortar), $ sales growth and $ sales % change vs. YA, 52 weeks ending July 16, 2023
Asia-Pacific
China
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