Toronto,
ON, March 29, 2021 –
The Canadian prestige beauty industry generated $2.2 billion in sales 2020, a -17% decline compared to the prior year. Widespread lockdowns and retail restrictions led to steep declines in several key beauty categories including makeup (-33%), skincare (-9%) and fragrance (-7%).*

While the last 12 months have been difficult, the Canadian beauty industry is beginning to show signs of growth. Year-over-year sales for the week ending March 13 increased by +3%, which was the first time the industry has seen a positive weekly sales increase since the week ending November 21.**

Ecommerce has also been a bright spot for the industry. Online sales saw an increase of +56% in 2020 as the channel registered almost one third of all prestige beauty sales on the year compared to just 17% in 2019.

“As we head towards recovery, there is a great opportunity for brands and retailers to delight and surprise consumers and build loyalty both in-store and online,” said Alecsandra Hancas, Canadian Beauty Industry Analyst at The NPD Group. “Recovery will vary by category, and while Skincare and Fragrance have shown positive signs, there are bright spots even within the struggling makeup category. Lipstick, just like going out, will make a comeback and we can’t wait.”

Skincare maintained its standing as Canada’s number one category and had the lowest impact on unit sales, declining just -1% vs. the previous year. While fragrance sales declined by -7% consumers spent +6% more on average compared to 2019 as they shifted their dollars towards stronger, more concentrated scents and the iconic designer brands and pillar brands they know and love. Furthermore, fragrance home scents grew by +10% as consumers searched for ways to incorporate luxury into their stay-at-home lifestyles.

Hair grew +33% and was the fastest growing category across all the countries tracked by The NPD Group. The top market share gainers for the year included hair products; fragrance eau de parfum and eau de toilette; face creams, serums, cleansers and exfoliators; body creams/lotions; candles and nail care.

 

*Source: The NPD Group / Canada Beauty Total
Market, January-December 2020
**Source: The NPD Group / Canada Early Indicator
Report, Week Ending March 13



Press Contact

Marissa Guyduy

516-625-2203 
marissa.guyduy@npd.com 

The NPD Group, Inc.
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Port Washington, NY 11050