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Beauty Indulgences this Holiday Season

Larissa Jensen

Senior Vice President, Global Beauty Industry Advisor


Heading into the 2022 holiday season, the U.S. beauty industry’s biggest question is, can our industry remain insulated from the economic...

  • Writer: Larissa Jensen
    Larissa Jensen
  • Oct 28, 2022
  • 2 min read

Heading into the 2022 holiday season, the U.S. beauty industry’s biggest question is, can our industry remain insulated from the economic headwinds swirling around us? Year-to-date, prestige beauty is the only industry that is growing in unit sales among the 14 discretionary retail spending categories tracked by NPD. Clearly, consumers have been indulging in beauty products — an indulgence that is unique to the prestige side of the beauty market. In fact, year-to-date unit sales are declining for beauty products sold in the mass channel, including food and drug stores, according to IRI mass market sales data, whereas both dollar and unit sales are growing by double digits for beauty products sold in the prestige channel.


There are reasons to feel optimistic that the prestige beauty market’s sales energy will endure for the holiday season, including the following:

The first is because of what NPD has coined the “beauty index.” Bigger than the lipstick or fragrance indexes, the beauty index is tied to the same dynamics, but on a broader scale. Regardless of which company or poll has been measuring it, U.S. consumer sentiment has unanimously been trending downward all year. The beauty index supposes that when sentiment is low, the desire to treat oneself goes up, and NPD has observed the impact of consumers treating themselves across all prestige beauty categories throughout 2022. In line with this trend, 28% of consumers are planning to purchase beauty products this holiday season, which is consistent with prior years, according to findings from the NPD Holiday Purchase Intentions Report.


The second reason for the beauty industry’s positive holiday outlook is that consumers are planning to shop more in stores. According to NPD’s holiday report, more consumers will purchase holiday gifts at brick-and-mortar stores. This shift from online shopping is a boon to beauty product sales, as physical stores capture the largest share of revenue across all categories. This channel also has a higher frequency of impulse purchasing, and beauty products are the ultimate little luxury — they are quick and easy to pick up while walking the aisles. Online sales will remain important, but physical stores will win during the holidays this year.


The final, but equally important, reason stems from the prestige beauty industry’s largest consumer base. Nearly half of its shopper base has a household income of more than $100,000 per year. This contrasts with the mass-market shopper, which has a greater diversity of income levels; according to IRI shopper panel data, about one-third of the mass market shopper base earns less than $50,000 per year and these consumers are more likely to cut back spending this holiday season. In contrast, NPD’s holiday study reveals that consumers earning over $150,000 are more likely than other income ranges to spend more, shop for themselves, and purchase beauty products during the holiday season.


NPD is forecasting holiday sales growth for the prestige beauty industry. The expectation is that the dynamics that have propelled our industry forward all year should continue to carry us through the always important fourth quarter. Fragrance sales will grow, albeit slower than in years past, and makeup, skincare, and hair care should also shine during the holidays, maintaining the strong sales performance these categories have experienced so far this year.


About the author

Larissa Jensen, senior vice president and global beauty industry advisor at Circana (formerly IRI and The NPD Group), is a recognized expert in the skincare, makeup, fragrance, and hair categories. She travels globally to lend her knowledge of the U.S. and international markets to the beauty industry, which includes the evaluation of new business opportunities for top beauty retailers and manufacturers around the world.


Larissa contributes to major media outlets including The Wall Street Journal, New York Times, Bloomberg, Women’s Wear Daily (WWD), Vogue, Business of Fashion, and many others. She has been a featured speaker at the WWD Beauty CEO Summit and has delivered keynotes and trend presentations at established beauty events and conferences for Cosmetic Executive Women (CEW), Cosmoprof, Drug Store News (DSN), HBA Global Expo, and The Society of Cosmetic Chemists. Larissa has been a guest lecturer at Columbia University Business School and The Fashion Institute of Technology (FIT). She is an adjunct professor and Advisory Board Member for FIT’s CFMM Master’s Program, Advisory Board Member for Cosmoprof North America, and on the Board of Advisors for Beauty Packaging magazine. She was recognized among the 2023 Women Worth Watching in Leadership® by Profiles in Diversity Journal, in 2024 was named among the Top Women in Health, Wellness & Beauty by Drug Store News (DSN), and was the recipient of 2025 Leadership in Beauty Award from the Long Island Herald’s 2025 Health & Beauty Awards of Long Island.


Larissa joined then NPD in 2005 following her marketing roles at The Estée Lauder Companies, Inc. and L’Oréal USA. Larissa earned a Bachelor of Science degree in Communications from Ithaca College, and a Master of Professional Studies degree in Cosmetics and Fragrance Marketing and Management from FIT.

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