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PRESTIGE MARKET STAYED HOT, WHILE MASS MARKET WAS FLAT IN FIRST HALF, ACCORDING
TO NEW REPORT

Circana data shows the beauty market overall coming in at $15.3 billion.

By James Manso Plus Icon
James Manso

Market Editor, Beauty


RECENT ARTICLES BY JAMES MANSO

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   According to New Report
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View All
August 6, 2024, 12:01am
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Body mists helped grow the fragrance category in the first half. Photo courtesy
of Nest New York
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In the U.S., it’s a tale of two beauty consumers, Circana data shows.

While the prestige market grew 8 percent and the mass market stayed relatively
flat, consumers with more than six figures in annual income are spending more
across the board — and in prestige, outweighing lower-income households.

“The mass consumer is more likely to cut back on these things, because of the
price increases,” said Larissa Jensen, senior vice president of beauty and
industry adviser at Circana. “In prestige, the shopper base earns over $100,000
per year in household income, and they’re offsetting the pullback we’re seeing
in prestige from those earning less.”


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Jensen posited that the key motivator on the prestige side is value. In
fragrance, for example, that includes gift sets and lower-priced formats such as
body sprays; in skin care, brands hovering around $60 per item are outpacing
luxury price points, which are challenged.





In the prestige market, fragrance, hair, skin care and makeup grew a respective
12, 10, 7 and 5 percent. In the mass market, hair and skin care grew 2 and 1
percent, respectively, while fragrance declined 1 percent and makeup fell 4
percent. Across the board, Jensen said, unit sales fell in mass while they grew
in every prestige category. Dollar sales for mass and prestige together totaled
$15.3 billion.

“Everything’s in decline by unit sales across the mass market,” Jensen said. “I
look at unit sales as an indicator of consumer demand. Dollars are growing, but
it’s more because the prices are higher.”

Fragrance may have dipped in the mass market, though it’s still the
fastest-growing category in prestige. Body mists and sprays, which generally
fall under $25, doubled in revenue, and dupe culture is creating an area of
growth in mass, despite declines.



“It shows a continued pattern of bifurcation. It looks like shoppers are
‘trading up,’ but within prestige, value-driven categories are outperforming as
much as luxury ones,” Jensen said. “There’s lower price-point items but in a
more elevated retail experience.”

In makeup — still prestige beauty’s largest category — lip did well, led by lip
balms and oils. Varied formats, including liquid blushes and bronzers, stick
foundations and eye shadows also performed well. On the mass side, lip gloss and
lip liner were bright spots.

Skin care, which grew the fastest in unit sales in prestige, saw the most growth
in body. Body sprays, for example, grew by triple digits, and traditional
products like cleansers, lotions and creams swelled by double digits. Consumer
spending on body was up 25 percent, and the number of consumers spending on it
jumped 17 percent year-over-year.

“In skin care, we’ve been talking about the ‘new luxury’ — the average price
point is around $25 to $30, and the $60-priced brands are doing really well,”
Jensen said. “It’s not a traditional $300 or $400 luxury price point, but these
brands are performing better than the total market overall. Higher price points
are struggling in skin care.”

Hair tracked its uptick due to premiumization, with products that are priced
above $30 growing at three times the rate of lower-priced ones. The former now
accounts for 25 percent of sales in prestige. It’s also the only category with
the majority of sales coming from e-commerce, as opposed to brick-and-mortar.








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 * hair
 * makeup
 * skincare

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