PORT WASHINGTON, N.Y.—The market research company, NPD Group Inc., presented the U.S. and global beauty industry’s first look at 2010 year-end results for skin care, makeup and fragrance at its annual “Hot off the Press" event at the Plaza Hotel in New York. According to NPD, the total U.S. prestige beauty industry showed an increase of 4 percent in dollar sales from 2009 to 2010, after two consecutive years of decline.
The NPD reported the dollar percent change in prestige beauty growth by country for 2010 versus 2009: United States. +4 percent, France +3 percent, the United Kingdom +8 percent, Italy +2 percent, Spain -3 percent, China +26 percent, Mexico +8 percent and Argentina +3 percent.
In 2010, all the U.S. prestige beauty categories experienced dollar growth as opposed to 2009, where all the categories, including the total prestige industry declined. Prestige skin care posted the biggest increase, followed by prestige makeup and prestige fragrance.
“What a difference a year makes," said Karen Grant, vice president and senior global industry analyst, The NPD Group."If there were any doubts of the continued appeal of prestige beauty products and the tenacity of the beauty industry after the declines of 2009, then 2010 provided a loud, clear and most encouraging answer. Prestige Beauty saw the quick recovery of skin care, which by June, had surpassed prerecession levels. This was followed by the gradual upturn in makeup, and finally, a late year rally in fragrance. Prestige beauty is well positioned for a positive year in 2011."
It was a good year for the Food/Drug/Mass channel as well. The channel experienced a 3-percent sales growth in 2010, versus a flat 2009. Makeup sales posted the biggest increase, followed by skin care, while fragrance sales declined slightly by -1 percent. Fragrance sales in the National Chain declined by -1 percent in dollar sales as well.