When it comes to prestige beauty, the U.S. is outpacing Europe in terms of growth, according to The NPD Group.
The market research firm released its annual report, which revealed that the U.S. prestige beauty industry posted a 7 percent gain in 2012, generating $10.2 billion, versus the 11 percent increase in 2011. However, due to the challenging economic climate, sales declined across many European countries, such as France, Italy and Spain. According to the report, most of the annual 2012 U.S. growth was driven by skin care, making up $3.4 billion. The second-highest gains were generated by makeup, with $3.8 billion in sales, then fragrance, at $2.9 billion. “In skin care, new subcategories are gaining importance as high-end innovation in devices, such as sonic cleaning in the U.S., make a mark and there continues to be advancements in antiaging, which is now offered with brightening and complexion solutions,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.
Findings stated that, on the other hand, European skin-care sales dropped two percent overall, with small facets of growth in the body, face and sun categories. Fragrances also went down 1 percent overall.“In makeup, alternative brands join designer and makeup artist brands in expanding the offerings in foundations and in color categories, such as innovations in lip products,” said Grant. Thanks to strong U.K. sales, makeup experienced 2 percent overall growth throughout Europe, with the face, eye, lip and nail categories making up the majority (90 percent) of the European prestige beauty business. “Moving into 2013, we can expect premium products to again be a shining light even in Europe,” added Grant.
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