The NPD Group Presents 2012 Overview of U.S. and Global Beauty Sales at “Hot off the Press” Event in New York

Port Washington, NY, January 25, 2013 –  The NPD Group, Inc., a global information company, presented the U.S. and global beauty industry’s first look at 2012 year-end results for skincare, makeup, and fragrance at their annual “Hot off the Press” event at the Harmonie Club in New York last night. Cosmetic Executive Women Inc., (CEW), a leading professional organization in the beauty, cosmetics, fragrance and related industries, partnered to host this year’s event.

According to NPD, the total U.S. prestige beauty* industry showed an increase of seven percent in dollar sales in 2012 vs. 2011.

“Coming off the wave of 2011, one of the most robust sales periods in over a decade for the beauty industry, 2012 has shown some great highs, along with some modest lows,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.

Prestige Beauty Growth by Country: 2012 vs. 2011

Country Dollar Percent Change
U.S. +7%
U.K. +5%
Mexico +5%
France -1%
Italy -4%
Spain -7%
Argentina -10%

Sources: U.S., France, U.K., Italy, Spain: The NPD Group, Inc.
Mexico: Segmenta Projected Sell In/Sell Out
Argentina: Segmenta Projected Sell In/Sell Out, 12 months ending Sept. ‘12

All of the U.S. prestige beauty categories posted healthy growth. Prestige skincare sold in U.S. department stores generated the largest growth at 10 percent, followed by makeup at seven percent and fragrance at five percent, compared to 2011.

“Even though consumer confidence continues to waver, there is momentum at both ends of the price and product spectrum. In 2012, along with smaller categories in beauty, we are seeing investment spending on premium-priced makeup, skincare, fragrance, as well as premium-priced sets, which lead in growth once again. Even in Europe, where the economic environment is more challenging, the major premium-priced category, fragrance, was positive. Premium-priced products remain one of the brightest spots in beauty and will continue to carve out market share across all categories and geographies in the New Year,” said Grant.

In addition, the U.S. Food/Drug/Mass** channel experienced nearly a three percent increase in sales for total beauty in 2012, versus 2011. Makeup sales posted the biggest increase at five percent, followed by skincare at three percent, while fragrance sales declined four percent in dollar sales, compared to 2011. In National Chain*** stores, fragrance sales grew seven percent.

“In the U.S., although we have seen some tempering in sales performance, compared to 2011, growth remains positive for both the prestige and mass channels. The trend of prestige beauty outpacing mass beauty continues to be evident since the recessionary period of 2009 and will likely continue into 2013,” ended Grant.

*Prestige Beauty: Products sold mainly in U.S. Department Stores.
**Food/Drug/Mass: SymphonyIRI Group, Inc.; Total U.S. FDM (excluding Walmart).
***National Chain: NPD BeautyTrends National Chain Fragrance.

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