U.S. Prestige Beauty up 11% from 2010


PORT WASHINGTON, N.Y.—According to The NPD Group, the total U.S. prestige beauty (products sold mainly in U.S. department stores) industry showed an increase of 11 percent in dollar sales in 2011 versus 2010. The research company will present the U.S. and global beauty industry’s first look at 2011 year-end results for skincare, makeup and fragrance at its annual “Hot off the Press" event at the Plaza Hotel in New York on Tuesday, Jan. 31, 2012.

Prestige Beauty Growth by Country: 2011 versus 2010:

Country                Dollar Percent Change

U.S.                      +11 percent

France                  +3 percent

U.K.                      +9 percent

Italy                      +1 percent

Spain                    -1 percent

China                    +22 percent

Mexico                  +15 percent

Argentina              +33 percent

Sources: U.S., France, U.K., Italy, Spain: The NPD Group Inc.

China: Based on Leader Panels in 10 Cities, 12 months ending November 11

Mexico: Segmenta Projected Sell In/Sell Out

Argentina: Segmenta Projected Sell In/Sell Out

In 2011, skin care and fragrance sold in U.S. department stores both posted double-digit dollar growths of 14 and 11 percent, respectively, while makeup grew a healthy nine percent, compared to 2010.

“In the United States, U.K. and China, prestige beauty is enjoying one of the most robust sales periods ever," said Karen Grant, vice president and senior global industry analyst, The NPD Group. “In the United States, for example, beauty sales in both the mass and prestige channels were positive month after month in 2011. And while both channels were positive, prestige beauty reigned supreme. From the stellar increases in prestige skin care to the continued gains in makeup, to the double-digit rebound of fragrance, prestige beauty is experiencing a time of unprecedented growth.

“In continental Europe where the prestige market is more mature, growth is more tempered, and performance among the categories has not been as dynamic as in the United States or U.K., but nonetheless, prestige beauty managed to flourish thanks to brand media investment, bigger in-store animation and price promotions."

In addition, the U.S. Food/Drug/Mass (according to SymphonyIRI Group Inc.; Total U.S. FDM [excluding Wal-Mart]) channel experienced a four percent increase in sales for total beauty in 2011, versus 2010. Makeup sales posted the biggest increase at 8 percent, followed by skin care at 3 percent, while fragrance sales declined 5 percent in dollar sales, compared to 2010. In National Chain stores, fragrance sales grew 5 percent.