Prestige beauty U.S. sales fell 19% in 2020 to $ 16.1 billion, posting a year-over-year loss of $ 3.8 billion, according to year-end data from the NPD group.
Brick and mortar are down nearly 39%, said Larissa Jensen, vice president of beauty and industrial advisor at the NPD group, while digital sales grew 46% and for the first time accounted for more than 50% of sales for hair and skin care.
Light points included prestige hair care, which increased by 8 percent. Skincare products like masks performed well, while styling products slowed the category’s momentum. “The category was growing in double digits and it softened further,” Jensen said. “Shampoos, conditioners as well as specialty hair products like masks – the segment performed well, which is due to the economy at home. “
Makeup sales took the brunt of the crisis, dropping 34%. The challenges facing the category are manifold. “The biggest makeup markets are the big cities, which are also having a harder time with the economic recovery from the pandemic. These cities have the biggest makeup declines, ”Jensen said. “Makeup declines are dragging the industry, and the industry’s recovery is tied to makeup.”
Although categories like eyes and skin tone were presented as bright spots, Jensen said that in 2020 every color segment has declined. “Makeup has a lot of headwinds. It’s against a lot, in addition to the pandemic, it’s a consumer confined to the home, ”Jensen said. Lip faced the steepest drops.
Makeup is still the most important premium beauty category, but Jensen predicted that skincare could overtake it by the end of 2021. Skincare sales fell 11%, with the greatest losses in face creams, eye care, serums and lotions. More surprisingly, the generally staid body category has mitigated losses from skincare, along with hand soap, targeted skin treatments, and facial appliances.
In the field of skin care, clinical brands have become the largest type of brand in terms of sales, going beyond the natural. “Clinical, as a type of brand, has historically had a higher penetration of e-commerce sales. It makes sense online: it’s a technical category, you might want to do more research to find out more about the products, ”Jensen said. “When the whole industry moved to the Internet, they took advantage of it. They actually showed growth, the only type of brand to grow by 3%. “
As for fragrance, this category fell 8%, but showed resilience in the second half of the year. “Since August, the fragrance has had a positive monthly dollar performance,” Jensen said. “If you think about the larger things that happen, scent lotions and soaps are doing well, and so are home fragrances, which we’ve been talking about for some time now. The juices were really the winners with the majority of the volume, especially in the higher concentrations.
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