Pic: Pexels - Guilherme Almeida
The latest figures from The NPD Group underscore the rising mood of consumer optimism, as the US beauty industry emerges from last year +30% versus 2020 (the equivalent of $22bn in sales). Fragrance was the best performing category (+49%) YoY, followed by haircare (+47%), makeup (+23%), and skincare (+18%).
For many, returning to the office and the revival of social activities has fuelled the appetite for new products. Coupled with a lockdown diet of TikTok tutorials, consumers are feeling more creative and experimental than ever. According to NPD’s data, there was a growth in sales of cream and stick blushes - two products that have gained particular popularity on social media. Further to that, brands helmed by high profile influencers and creators had the highest revenue gains among all the makeup brand types.
In the skincare category, sales of facial cleansers, creams, and serums, grew between 15% and 24%, versus 2020. Sales of targeted products, like eye and lip treatments, also increased. Clinical skincare brands contributed the highest revenue gains to the category, and surpassed natural as the largest brand type in skincare, based on revenue.
“As we move through 2022, the beauty companies that will thrive are those that harness the industry’s unique ability to spread joy, while also recognizing the opportunities of a changed consumer and retail environment. We can expect more change to unfold in 2022, but, along with these changes, new opportunities for the beauty industry will present themselves.” Larissa Jensen, beauty industry advisor at NPD
In our latest trend report, The New State of Being - Makeup, our team charts beauty’s positive rebound and how optimistic consumer sentiment is not only driving the continued bounceback of the beauty market but is also translating into exciting new product directions. Our next report, The New State of Being - Skincare, will be available in March.