The US beauty and personal care market surpassed $85 billion in retail sales in 2021, an increase of $7 billion from 2019 sales levels, according to Kline. This is the strongest performance of the market in the last 10 years, but the growth is expected to continue according to the forecasts of the market research firm. a CAGR of 6% [1] until 2026.
Fragrance and makeup boom
Some categories, like fragrance and makeupare back on the radar of consumers and retailers alike, with rising sales of these products driving overall industry growth, he wrote. Dana Kreutzer, Project Leader, Consumer Products, at Klinein a recent blog post.
“ Make-up which jumped 12% in 2021, is moving in a direction where hybrid experiences or skin-enhancing makeup are becoming more mainstream when it comes to product innovation.” said Kreuzer, mentioning recent launches such as Kosas Revealer Skin-Improving Foundation SPF 25, with brightening and plumping properties, and Chanel’s new N°1 Revitalizing Foundation, with moisturizing and plumping properties.
Fragrance recorded even higher activity last year, with a 25% increase within the luxury segment. The category also witnessed an influx of male consumers.
According to Kreutzer, the importance of makeup and fragrance is supported by recent results from market leaders; for example, L’Oréal’s recently released Q1 2022 sales report showed that makeup was a major contributor to growth and its fragrance portfolio continued to drive the performance of its Luxe division in North America.
Retailers that invest in beauty
More broadly, beauty product sales growth is driven by consumers returning to stores. Based on SafeGraph foot traffic data, Kline found that first-quarter foot traffic was up 25% from a year ago and 14% higher than 2019 levels for select beauty retailers like Sephora, Ulta and Bath & Beauty. Body Works.
In such a context, big retailers are now transforming their beauty operations to keep shoppers coming back. According to Kreutzer, mass retailers like Target and Walmart are taking more advantage of beauty through store makeovers and partnerships with premium beauty retailers, including Ulta (Target) and Space NK (Walmart).
Source: www.premiumbeautynews.com