Prestige beauty sales see strong growth in the US and UK

The global prestige beauty market has experienced some mixed results during the first half of 2013, according to the latest figures from The NPD Group.

While the US saw 8% growth on last year, generating $5bn, and the UK saw value sales increase 6% to £803m, the positive results were not reflected across Europe. In France, sales took a nosedive, down 2% to €1.3bn, while Spain decreased by the same amount to €621m. Italy experienced the largest decline, down 3% to €833m.

Growth in the US can largely be attributed to skin care and make-up sales, generating $1.8bn and $2bn in sales respectively. A good result was also seen in the fragrance sector too, up 4% to $1.1bn. This sector also accounted for the largest share of prestige beauty sales in Europe, representing 43% in the UK, 62% in France, 40% in Italy and 51% in Spain.

Karen Grant, Vice President and Senior Global Industry Analyst at The NPD Group said: “Our expectation for 2013 was that the global prestige beauty industry would look similar to 2012 and the results thus far are proving this to be true, as economic uncertainties continue to weigh heavily on the European markets.”

She added: “The similarities in retail distribution, brand assortment, and product mix in the US and UK continue to help both markets capitalise on positive trends. Though the results for these countries, compared to those in the Eurozone, look like ‘the tale of two markets’, there is one common thread: investment spending continues. The markets in the Eurozone face greater challenges but, with the exception of Spain, most markets are continuing to show increases in average selling price across all categories. This tells us that while consumers may be cutting back in spending they are continuing to invest in value, even when that may be at higher prices.”