Skincare sales have outpaced makeup this year, according to second quarter 2017 prestige-beauty insights from NPD Group. For the retailer looking to capitalize on this trend, expanding its skincare offerings to include a variety of new, unique and innovative skincare options, especially from smaller brands hitting the market, will allow it to make the most of this growth.
Skincare sales grew 6 percent over second quarter 2016, to $1.4 billion, this year, compared to the makeup category’s 4-percent increase, followed by fragrance’s 1-percent increase. It’s worthwhile to note, however, that sales in men’s fragrance surpassed that of women’s, at a 4-percent increase versus 1-percent increase, respectively.
“Skin care’s accelerated growth is being driven by newer brands and products that are capturing greater market share,” said Larissa Jensen, executive director and beauty industry analyst for The NPD Group. “This is a continued trend as we have seen a lot of excitement and innovation in skin care coming from smaller, more limitedly distributed players, which resonate with the consumer desire for discovery and uniqueness.”
Retailers should also note that within the skincare category, hair offerings outpaced all other skincare category growth, digging its way out of a deficit from second quarter 2016 to a roughly 10-percent increase; followed by face care with more than 5-percent growth; and then body care and sun care.
Notably, prestige beauty overall saw a 4-percent increase to $4.2 billion, despite the hit to total makeup sales—a more than 10-percent decrease, including a deficit in the lip category, but with a slight boost to nails, which modestly emerged out of deficit.
“Makeup’s slowdown in performance has been observed since 2016, and amplified in 2017 by fewer launches, a struggling lip segment, and softening average prices. Despite this, there are areas of growth in the category, like palettes and sets, which may help fuel greater gains for the remainder of the year, as cost-conscious consumers continue to seek out value,” added Jensen.
It appears that in spite of the expansive influence of makeup gurus and beauty influencers in general across social media platforms, consumers are currently finding more value in the condition of their skin beneath the makeup.
[Images courtesy of NPD Group]