Fragrance maintains its position as the top-performing category

CHICAGO, May 19, 2025 – U.S. prestige beauty industry sales revenue remained flat in the first quarter (Q1) of 2025, compared to the same period in 2024, according to Circana LLC. In comparison, mass market beauty sales experienced a year over year dollar increase of 3% – marking the first time in several years when the mass channel has outpaced prestige.

Price increases contributed to the stronger performance in the mass market, as unit sales were down 1%. Overall softness for prestige beauty in Q1 was driven primarily by consumer pullback in January, which improved in February and further improved in March, when in-store sales experienced a lift. In fact, all beauty categories experienced prestige market growth in March.

Looking at sales by category, fragrance continues to hold its place as the top-performer, with Q1 dollar sales up 4% in the prestige channel and 8% in the mass market. In prestige outlets, gift sets outperformed thanks to mini and travel size sets, with an increase of 45%. High concentrations including eau de parfums and parfums continued to drive the greatest impact on growth.

Maintaining its position as the largest prestige beauty category based on sales volume, prestige makeup experienced a slight decline of 1% based on dollars. Though the face and eye segments were challenged, stick formats have been a bright spot. In fact, stick eye shadow and stick foundation each grew double digits, outperforming their counterparts that come in more traditional forms. Overall lip makeup sales remained flat; however, lip liner and other lip makeup which includes lip oils and lip balms grew.

The skincare category experienced a decline of 3% in dollars, but units sold grew by 1% in the prestige channel. In mass, the category posted growth in terms of both dollars and units, which is notable given that skincare was the most challenged beauty category in prestige retail. Skincare’s prestige performance was driven by declines in facial skincare, notably key areas such as face serum, face exfoliator, and lip treatment. Conversely, body and sun care segments continued to grow. Body sprays, serums, deodorants, and hand soaps all grew by double-digits, and sun care-related products from sunscreen to self-tanners grew, as well.

The hair category emerged as one of the strongest within prestige beauty in Q1, growing by 4% in dollars and experiencing single-digit growth in the mass market, as well. In prestige, styling products were the top driver, increasing by 12%. Emphasizing the importance of hair wellness, scalp care products continued to grow in sales, as well as those addressing hair thinning, hair loss, and heat protection. 

“The beauty industry will continue to stabilize following its tremendous growth streak in prestige, even as some categories such as fragrance will continue to surge,” said Larissa Jensen, global beauty industry advisor at Circana. “The macro landscape of 2025 presents a complex mix of factors that will shape industry dynamics. When navigating through what we can’t control, we as an industry must prepare where we can – through strategies that include creating brand value beyond price and focusing on compelling value propositions and high-margin innovations to appeal to consumers.”