Sequential quarterly prestige beauty sales grew 16%, while mass-market beauty sales grew 10%
CHICAGO, April 26, 2023 – A solid start to the year, U.S. prestige beauty industry sales reached $6.6 billion in the first quarter (Q1) of 2023, a 16% increase versus Q1 2022. In comparison, the mass beauty market generated $7.0 billion and grew 10%, according to Circana (formerly IRI and The NPD Group).
“Following a stellar 2022, the beauty industry continues to bask in the glow of growing sales,” said Larissa Jensen, beauty industry advisor at Circana. “These first quarter results reinforce beauty’s resiliency and unfaltering position as an indispensable category. As the prestige and mass industry lines blend, a clear picture of the complete beauty marketbecomes particularly important for brands and retailers that want to find new avenues for growth and harness the purchasing power of a consumer base that is already loyal to its products.”
Makeup was the fastest-growing beauty category in Q1 2023, across both the prestige and mass markets, capturing almost one-third of complete beauty sales revenue for the quarter. Consistent with the “Lipstick Index” phenomenon and “treat mindset,” Circana has been reporting, lip products grew fastest in the prestige makeup segment, growing 43%. Higher-priced designer-brand product sales increased at an even faster rate.
In the skincare category, there were also bright spots across both sides of the business. Facial skincare sales at mass merchants outpaced the prestige market, with sales rising 13% and 10%, respectively. In the prestige skincare market, clinical brands grew faster than natural brands, regaining leadership share, as new launches from clinical brands played a role in fueling sales.
Gift sets and mini-sized product were standouts in the prestige fragrance market. Sales of fragrance gift sets grew by 31%, helped by more dedicated shelf space and consumers finding value in these types of products. In addition, prestige fragrance sizes under one ounce accounted for nearly 40% of unit sales in Q1, a three-point increase versus last year – appealing to consumers looking to easily carry their fragrances with them, or to own a luxury fragrance at a lower price-point.
Hair care experienced the highest year over year average price increase among all prestige beauty categories, driven by an increase in sales of products priced above $30. In addition to higher-priced products, targeted treatments are enriching prestige-hair category sales, including heat protectants, hair thinning products, and scalp care.