The global financial collapse slowed the sales within the prestige beauty industry-products (skincare, makeup and fragrance) sold mainly in US department stores, declining by 6% in 2009. Yet, over the past three years, the industry has found its footing, producing 4% growth in the US in 2011 and 11% in 2011.
The industry remarkably continues to grow in light of shaky consumer confidence and far out performed mass segment sales growth. Spurred by expansion and growth in global markets (France, +3%); (China, +22%); (Mexico, +15%); (UK, +9), emergence of the skin care segment (+14% growth in 2011), in particular anti-aging products (+17% growth in 2011), and several major brand acquisitions, 2011 marked was a high point for the industry.
Driven by technological advances, increased advertising spend, increased discretionary spending and wider product distribution channels, sales of prestige beauty products continues to increase in 2012 to-date. Companies continue to expand their global and domestic footprint through acquisitions and the introduction of new products.
Sources
Exploring Paradigm Shifts in Global Beauty 2012, EuroMonitor International, April 2012
Pampering Yourself is Newly Back in Fashion, Wall Street Journal, May 2012
The Top 10 Global Beauty Brands, Forbes, April 2012
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