Since 1996, the prestige beauty industry has relied on NPD’s comprehensive beauty market research and business solutions to deliver insights into what is selling, where, why, and at what price. Our research includes information for the U.S., Canada, France, Italy, Mexico, Spain, and U.K. beauty markets. It helps companies address the emerging trends, needs, and behaviors of the next generation of beauty consumers.
We monitor global beauty industry trends – from the “big picture” down to the category, geographic region, and store levels. We can even help you look for opportunities or evaluate pricing strategies.
How do we do it? We bring our robust data assets, along with our industry expertise, and combine them with your data or third-party data to find solutions to your business issues.
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Scentiments is a new suite of consumer insights on fragrances and scented products that delivers a robust view of consumers, their attitudes and lifestyles, and shopping and usage behaviors. Brands and retailers use this information to guide product, point-of-sale, and marketing strategies that resonate with consumers and drive growth. Enhanced by our fragrance experts’ industry knowledge and keen insights, Scentiments offers the industry the most comprehensive understanding of the U.S. fragrance consumer.
Learn More About Scentiments
Store-Level Enabled Retail Tracking
Store-Level Enabled Retail Tracking complements BeautyTrends®. It can help you determine whether sales are distribution-driven or whether certain parts of the country are contributing more to national share or driving growth. The velocity measure set that is part of Store-Level Enabled Retail Tracking takes into consideration sales volume (Annualized Industry Volume or AIV) rather than considering store count alone, for a more meaningful read on where products are selling and how they are performing.
BeautyTrends® is the point-of-sale (POS) tracking service measuring the performance of fragrances, makeup, and skincare products. SKU-level detail is captured monthly for more than 75 product categories. Channels reported on include prestige department stores, mid-tier national chain, fine department stores, TV/shopping, and dot-com/Internet pureplay retailers. Evaluate purchasing trends so you can make better business decisions and take full advantage of emerging opportunities across these key channels.
Fragrance data is also available on a weekly basis. Having a faster read on what’s happening in the marketplace is essential for tracking new launches – during the holiday season and all year round.
Beauty Cross Channel Monitor
NPD and Nielsen have partnered to produce the Beauty Cross Channel Monitor. This comprehensive report on the beauty market provides the only total market view spanning both the prestige and mass channels. The Beauty Cross Channel Monitor combines Nielsen and NPD point-of-sale data across a range of retail channels, providing a precise read on sales and performance for all beauty categories including dollar sales, unit sales, and average retail price, in addition to a ranking of the top 75-100 brands. Brand marketers can evaluate the performance of categories, segments, and brands across major beauty distribution channels to better understand and respond to new U.S. beauty market opportunities.
Beauty Multi-Country Topline Report
This report provides consistent, comparative, cross-country views of prestige makeup, fragrance, and skincare sales in the U.S., France, Italy, Spain, and the U.K., from a single source. It looks at the performance of top corporations, divisions, brands, categories, and segments in these key global markets. Use this report to evaluate brand performance across countries to guide marketing and product strategies, understand how product mix differs by country, and guide assortment and distribution plans.
You have opportunities. You face threats. What you need are smart, quantifiable methods of distinguishing one from the other and maximizing your chances of success. NPD’s Analytic Solutions Group includes a team of senior leaders with extensive experience developing and delivering analytic solutions that address strategic marketing, sales, and planning issues.
We combine NPD POS and consumer information, industry expertise, and custom survey research – then add state-of-the-discipline research techniques and methodologies to explain the "why behind the buy.” Through advanced modeling and analytic services, we offer insight into what will happen in the future, not just what has happened in the past, answering your most pressing business questions:
- What consumer segments should we target and why? How do we know if we’re successful over time?
- Which products are hot? How should we respond?
- What’s the sales potential and ROI for my new / revamped product idea?
- What is the optimal feature combination for my product?
- How do I monitor my performance in my sales territories, distribution areas, etc.?
- Is your promotion strategy attracting new buyers or just moving forward sales you would have gotten anyway?
- How will a competitor’s price drop impact your sales next quarter, and how should you respond?
- Will my product category grow or decline? Why? What does this mean for my market share?
- What’s the competitive landscape and where are my best opportunities (Food)?
- What levers should we pull to increase sales and market share?
- Why are some of our stores performing better than others?
- Why do consumers choose our brand? Our competitors’ brands?
- How effective is our advertising? How can we improve it?
- What products should we develop?
- What products should we sell?
- How can we optimize assortment based on local market dynamics?
- Which people should we target? Why?
- How do we know if we are successful over time?
See how clients have used our analytic solutions to solve their business challenges in our Analytic Solutions Case Study Library.
This quarterly report was created by a team of NPD analysts known for their experience, knowledge, and passion for the beauty industry. It puts data into context, giving you the story behind the data with detail on category drivers and industry insights across makeup, skincare, and fragrance. Use it to uncover opportunities and refine your strategies.
Polish up your nail care consumer knowledge. This report's information and analysis will help to ensure your marketing tactics are aligned with consumers' needs. Use it to understand the roles color and brand play in at-home nail polish purchase decisions, and see what sets at-home nail care consumers apart from their salon-oriented counterparts.
Spending expectations. Attitudes toward spending on beauty. Shopping dynamics. Emotional motivators. And more. Now you can explore the consumer mindset related to beauty and today’s economic reality in the 2015 edition of the Annual Beauty Consumer Economic Indicator Report. The report covers the impact of today’s economy on beauty spending, featuring select data originally presented at our February 2015 Hot Off the Press event. Produced since 2008, the report includes comparisons between our latest insights and previous years’ findings.
Avoid relationship trouble. See inside the relationship between women and their makeup — discover what consumers want, why they buy, how they use your products, and more.
It’s Beginning to Smell a lot like Christmas: Home Fragrance Most Important When Company is Expected, NPD FindsIn preparing their homes and minds for the holidays, and the festive family gatherings they bring, consumers turn to scent and décor to get into the holiday spirit. Home fragrance is most important to consumers when company is expected, as scents are a way of honoring their guests and ensuring they have a pleasant visit, according to Scentiments, a new suite of consumer insights and tools on the fragrance industry from global information company The NPD Group.
The Internet Surpasses Print and Broadcast Advertising as Preferred Source of Makeup Product Information, According to NPDDefining many of the most popular, growth-driving trends in makeup today from contouring to draping, the internet went from the least-frequented source of product information four years ago, to the fastest-growing in 2016, swaying both styles and sales, according to global information company The NPD Group’s Makeup In-Depth Consumer Report 2016. More women today are looking to the internet for information on makeup products and brands, up 11 percentage points versus 2014, or more than any other information source.
Craving pizza? Just Tweet a pizza emoji. Want that area rug? Just click the Buyable Pin for it to adorn your own home. Wish the watch in your Instagram feed were on your wrist? Just click on the brand’s profile link to buy it.
Since 2012, social media platforms have integrated click-to-buy features that allow retailers and manufacturers to sell directly to consumers within social platforms. Twitter, Facebook, Instagram, Pinterest, Tumblr, and Snapchat have all gotten in on the trend.
But even though online sales are growing and consumers are spending more time on social media, the jury’s still out: do these social buy buttons actually encourage people to buy, or have we seen the last of them?
Get our latest Insights – The Future of Social Commerce: How “Buy Buttons” Are Disrupting the Retail World
See how using Account Level Reports delivers critical insight into a brand’s performance compared to its competitors at a given retailer and compared to the rest of the market.
A couple of well-established brands improved their competitive position using retailer-specific insights. Understand how they did it.
Insights and Opinions from our Analysts and Experts
Growing up in New York City I had access to many things the common teenager did not. Around the corner from my apartment was the city’s first Whole Foods Market. I remember the opening very well and how crowded the natural and organic specialty food store was. But my focus was not the food part of the store. To the right of the main store, in a separate entrance, was a smaller sister store called “Whole Body.” I was obsessed. I more than likely spent more time there than at school (sorry, Dad!).
What I loved about the Whole Body experience was the education I received on ingredients -- not just the naturals that I could use to help solve my skin issues, but the ingredients that were not included in their products and the reasons why. Naturals are having a big moment in skincare. Natural brands are responsible for 55 percent of the overall gains in prestige skincare*, and 85 percent of any gains in the declining brick-and-mortar space**. But there’s this new underbelly of brands that are not making the claim of “natural” and are instead eliminating “unsafe” ingredients.
Beautycounter is perhaps one of the more popular skincare brands that have their feet firmly planted in the “clean” beauty space. The brand is completely transparent with their consumers, telling them that 80 percent of their ingredients are organic, natural, or plant-derived and 20 percent is synthetic. The brand has a download-able “never list” that it has compiled through the more regulated European Union and Health Canada, as well as an additional 100 chemicals that the brand itself has deemed questionable.
But it’s not just smaller brands that are paying attention to potentially harmful ingredients. Retailers like Whole Foods have encouraged its vendors by creating the Premium Body Care Campaign. Walmart and Target have both pushed to include safer, more natural brands in their product mix. Procter & Gamble released a “preservative tracker” just a few weeks ago. The website tracks preservatives that consumers might be trying to avoid but are used by various brands across their portfolio in categories like hair care, personal cleansing, and skincare.
Skincare is a very intellectual and emotional category. Have you ever watched someone talk about how acne affected their teen years and shaped their life? Or have you ever seen the desperation of someone so eager to figure out what is responsible for the red patches on their face? Brands like these are able to speak to that consumer. They provide information, dialogue, a potential resolution, and a cocoon of safety for the consumer to explore. While natural is certainly taking up the spotlight in skincare, brands with a “clean” approach are certainly waiting in the wings.
*Source: The NPD Group, Inc. / U.S. Prestige Beauty Total
**Source: The NPD Group, Inc./U.S. Prestige Beauty Department Store/Specialty Brick & Mortar
Despite my countless attempts to master its technique, contouring and I did not become friends. Desperation, however, was soon relieved by a new trend. Draping, or creating proportion and natural dimension by using deeper and lighter shades of blush, would be the answer to my prayers.
Draping is gaining in popularity, as Google Trends’ data indicates that search volume for “makeup draping” has skyrocketed 809 percent since May 2016. As of last week, over 200 YouTube tutorials on the technique have been uploaded. Makeup draping is mentioned, on average, every minute online. Products embracing the trend are steadily becoming available as brands launch compacts with drapable blush colors included.
Draping could have an interesting impact on blush sales. In terms of makeup products most widely used by consumers, blush does not make the top five (a list dominated by products like mascara, foundation, and eye shadow) as the percentage of consumers using it has remained steady*. Time will tell if the popularity of the draping trend will spill over into significant sales for blush, but recent data appears to be favorable as blush sales in the prestige channel increased 4 percent in June 2016**.
Draping allows me to create the dimension I have long desired, and provides my face with a natural look that I love. Rather than strive for the complicated and overdone, I am content adding draping to my short, yet essential list of makeup tricks. Kim Kardashian, contour queen: Eat your heart out.
*The NPD Group, Inc. / 2016 Makeup In-Depth Consumer Report
**The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market, January-June 2016
Social media has changed not only how we live, but how we shop. It’s difficult to find anyone who doesn’t have an Instagram account. This photo sharing social network has taken the world by storm, allowing users to capture moments and share them either privately or openly. Like most of those I know with accounts, once I snap a picture, it’s there for posterity in my feed. But apparently, the younger generation does things a bit differently.
In speaking with my younger and much hipper 17-year old cousin, she questioned why I would leave so many photos on my feed. She explained that most of her friends edit their photos on a consistent basis, taking photos down when they no longer feel these photos define them or if they don’t receive many “likes.” She keeps around 20-25 pictures on her Instagram so it represents the “best” of her life; a glossy representation at best.
Like kids with their Instagrams, beauty retailers have begun to edit their brands and products. Ten or fifteen years ago, when a brand was introduced into a store, the entire collection was displayed. But specialty stores like Sephora and Ulta have changed that, and vertical apparel retailers like Urban Outfitters and Anthropolgie have taken the concept even further. Both retailers often bring in small, niche brands with limited-to-no distribution and take only the star items of the lineup.
This sort of cherry picking makes sense in today’s retail climate. About three-quarters of any major sub-segment within skincare are planned purchases, which indicates that by the time consumers are at the purchase stage either in-store or online, they have completed research through family, friends, or other sources*. As a matter of fact, social media and blogs are among the only sources of information to increase with consumers*.
Skincare is certainly the most affected category within beauty since it is usually a purchase that requires some research and thought. Many of the brands that are thriving through social media are focusing on hero items, while introducing new products that consumers have expressed interest in through social feeds. This is a trend that will not go away anytime soon, so it remains to be seen how some of the more mainstream brands, with a larger product portfolio, adapt to this increasingly edited environment.*Source: The NPD Group, Inc. / Women’s Facial Skincare Consumer Report 2015
A friend’s daughter has made herself some nice pocket cash with a small and lucrative business creating and selling all-natural, homemade sugar lip scrubs. Did I mention her daughter is 11-years old? What is even more amazing is that she is not alone. From what I hear, the lemonade stand is taking a hit as many young girls shift their entrepreneurial spirit to the more profitable, and admittedly more fun, world of beauty.
Beyond the pre-teen entrepreneur, there are multitudes of legitimate and watch-worthy kitchen chemists entering the beauty manufacturing space and creating major waves. Many of these home-grown brands began by selling their wares on websites like Etsy. A growing number of them are being picked up by major players in the beauty retail space, including a few up-and-comers like Urban Outfitters and Anthropologie, as well as the more established Sephora and upscale Barney’s New York.
Small batch beauty brands often focus on being some combination of cruelty-free, eco-friendly or non-toxic, with sustainable and certified organic ingredients, or natural ingredients with nutritional benefits. This philosophy feeds well into the ideologies of boutique specialty beauty shops such as Credo, Cap Beauty, and The Organic Pharmacy, where brands like these have a significant foothold.
Given the focus on wellness and health in consumers’ everyday lives, these brands represent a trend that will likely get bigger as time goes on. In the prestige beauty space, brands with a natural focus have long outpaced other brand types in department stores, growing at five times the rate of total skincare in 2015. Eyeing the success of natural and small batch brands, some more established beauty players have followed suit by shifting their marketing speak to be more about the beneficial ingredients in their products, and promoting themselves as free of “the bad stuff” like parabens, sulphates, phthalates, petrolatum, and silicones.
As the wellness-focused consumer grows in size and becomes more educated and aware, she will demand more from her products. The onus will be on beauty brands to earn her dollars spent across all beauty categories. While this trend dominates among skincare products right now, makeup and fragrance are out there and not far behind. Staying ahead of this consumer need will prove a winning strategy for any brand, as beauty heads into the brave new, and more holistically health conscious, world.
I have recently developed a new love. I have fallen in love with candles and reed diffusers. I used to have this irrational fear of candles being dangerous and thought that reed diffusers were too fussy, though they are a great alternative to candles. Now I cannot see, or smell, my home without either.
These kinds of home scents have been growing exponentially in prestige despite their price tags. Consumers have been buying fragranced home-scented items in the prestige market. Though a small fraction of the market, dollar and unit sales of home scents have grown by double-digits for the last three years, with candles and reed diffusers driving the growth*. This sales increase speaks to consumers’ wanting to have signature fragrances for their homes.
My love affair began last year, during a trip to a high-end department store. Passing by an aisle display of candles, I was stopped in my tracks by an arresting aroma. I had to have the candle that wafted such a delicious scent. The ambrosial odor was exactly what I thought my new home should smell like. I balked at the price. They wanted how much for a candle? Disappointed, I walked away from that beautifully scented dream, but after that experience I just couldn’t get it out of my mind. A few weeks later I was in another high-end department store in NYC and was confronted by that same, wonderfully redolent scent. I broke down and bought not only the candle, but the reed diffuser as well.
It’s the artisanal brands that are really driving the growth of home scents. Their growth rate as a whole was 27 percentage points faster than that of the rest of the brand types in the home scent segment*. These brands are helping consumers to be more holistic in their approach to scent. They are not limiting scent just to the body, but are showing the other applications of scent in consumers’ lives. This is a strategy that has been helping them to win as artisanal brands in overall fragrance sales; they have been the only brand type to see double-digit growth for the last three years. The rest of the industry would do well to realize that fragrance as a category has various options and many, sweet-smelling applications.
*Source: The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market, Annual 2015
When I was a little girl, I remember watching my mother’s cleansing ritual with such awe. All the jars, potions, and lotions that she slathered seemed so glamorous compared to my splash of water. When my mother purchased her skincare products, she either bought them at a drug store/supermarket or a department store. There weren’t any other choices. But Sephora took the counters down and placed the products front and center for consumers to experiment. And while makeup and its various colors and shiny bells and whistles are more commonly associated with the word “play,” 2015 has seen smaller skincare categories emerge as not only functional, but fun.
No category has benefitted more from play than masks. In 2013, masks were a small piece of the skincare face business – barely 1 percent and a $60 million sub-segment. But in the past two years, its volume has doubled*. The same attributes that at one time created apprehension in brands and retailers are the same qualities that make masks attractive to consumers. Masks are more likely to be an impulse purchase and least likely to be brand specific**. With innovative formulas and formats and a focus on results, it’s easy to find reasons to purchase a mask.
While mask growth is still impressive and in the double digits, facial cleanser’s growth, though less dramatic, has seen a positive halo effect. Most likely an extension of masks, the cleansers sub-segment has traditionally received little attention. With a low price-point and lower commitment, the industry perception is that dollars are better spent on larger sub-segments with more hefty return. Cleansers, however, have seen excitement across most channels; brick-and-mortar, online, and fine department stores are all posting strong growth. This year, we’ve seen several formats debut, create excitement, and conceivably pique the consumer’s interest.
Both masks and cleansers have brought excitement to the consumer and created an environment where the shopper wants to try the new formats and ingredients that are being reported by bloggers and reviewed online. But in order for skincare to regain steady footing, creating an in-store environment that is not only inviting but low pressure, social, and entertaining is key. Using these two entry categories to introduce your brand is a smart way to arouse interest in prospective buyers and create an inviting environment for them to have some fun.
*The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market
** The NPD Group, Inc. / Women’s Facial Skincare Consumer Report 2015
Years ago, when I was home from college for Christmas break, I remember taking my closet apart one night searching for my favorite “going out” sweater to wear to a party. I knew I never brought it up to school, so it had to be there – except it wasn’t. Aggravated and annoyed, I ended up wearing something else. The next morning, my sister walked into my room to ask me a question and she’s wearing—you guessed it—my favorite sweater. And damn if she looked better in it than I did.
As any woman with a sister knows, whether you like it or not, sisters will borrow from your closet. In the world of beauty, makeup and skincare are no different. Moisturizers with a tint, foundation with sun protection, and colored lip balms are all proof of how these sister categories borrow from each other. But what happens when one sister outshines the other, helped in part by what she borrows? Kind of like when she looks better in your clothes than you do. But I digress.
Consider this. The gap in dollars between prestige makeup and skincare sales has widened. While both categories have grown in volume every year since 2013, makeup has grown at three to four times the rate of skincare, resulting in a gap in dollars of over $1.5 billion in 2015. This is three times larger than the gap between the categories two years ago. So yes makeup is doing well, but it appears to be succeeding at the expense of skincare.
Consumers continue to search for instant gratification and makeup delivers on that need. Add to that an expanded range of skincare benefits (serum foundations, primer oils) and skincare trends (star ingredient, natural products), and the evidence is clear that in addition to fun and play, makeup can also deliver on a multitude of more serious skincare needs.
While this may be dispiriting news for skincare, this is excellent news for consumers. There is no doubt that the sisterly bond that ties makeup and skincare is both important and beneficial to all beauty users, and will continue to drive the sales of both categories for years to come.
Source: The NPD Group, Inc. / U.S. Prestige Beauty Total Measured Market
I am very finicky about what is in my skincare products. I like all natural, organic ingredients and the only way I can control what goes into my skincare is by making the products myself. So, every few weeks you will find me in my kitchen melting and mixing small batches of butters and oils. My sisters used to make fun of my kitchen chemistry, but now I hand them a self-satisfied smile when they beg me to mix up a batch for them.
Though I love making my own beauty products from scratch, I have tried to DIY only for skincare and never for makeup. You will not find me crushing berries and bugs for that perfect shade of red lip stain—even I have my limits. It’s just that I’ve always found DIY makeup to be a little harder to create. According to an NPD study, 4 percent of female consumers DIY all of their makeup products, while 12 percent reported that if they had more time, they would DIY some or all of these products*.
My skepticism, however, was thrown out the window when I heard about a new makeup product that allows users to easily create their own foundation. I currently know of two such products on the market. They can be mixed with any facial product—be it a serum, oil, moisturizer, another foundation, or even my DIY skincare body/facial butter—to create a custom blended foundation. The coverage can also be customized by adding less or more drops of the pigment concentrate. Besides the DIY aspect, I also like that I can add more makeup to my skincare. These kinds of products would appeal to women who may not necessarily be DIYers but like using makeup with skincare benefits, as more than eight out of ten use makeup with skincare benefits**.
Today it’s pigment concentrates for DIY foundation; tomorrow it may be these kinds of concentrates for blush, eye shadow, or even lipstick. The kitchen chemist in me just cannot wait for ‘tomorrow.’
*Source: The NPD Group, Inc. / September 2015 Omnibus
**Source: The NPD Group, Inc. / 2014 Makeup In-Depth Consumer Report
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