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NPD Group declare sales for beauty products hit $8.2 bn

14 Apr '06

3 min read

US based consumer and retail information service provider NPD Group announces sales of prestige beauty products hit a new record of $8.2 billion last year, growing 4 percent from the year before thanks largely to soaring demand for new product launches, anti-aging products and celebrity endorsements.

The NPD Group is also seeing changes in the landscape as new brands or niche brands grow throughout much of the industry. Since 2000, sales of prestige beauty products, products sold at U.S. department stores, have grown by over $1 billion.

Among the three major categories in the beauty industry, makeup saw the biggest growth with a six percent increase in sales at U.S. department stores, hitting the $3 billion mark in 2005. Fragrance sales rose three percent to $2.94 billion and skincare rose two percent to $2.2 billion in the high-end, prestige category.

Skincare- The Fountain of Youth
All eyes are on anti-aging products within the skincare category. The search for the fountain of youth fueled the $2.2 billion dollar prestige skincare industry. New launches, fueled by anti-aging products, reached their highest level in five years, totaling $269 million.

Since 2001, anti-aging facial care products grew by 33 percent to total $664 million. Basic facial care, products without anti-aging benefits, grew by just 4 percent in 2005. One out of every three dollars spent in the prestige skincare market (excluding sets) was spent on an anti-aging face product.

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