Despite economic concerns, one thing for certain is the strong hold the beauty industry has on consumers as beauty is on track to continue experiencing growth in 2023.
“Looking at the industry holistically, inclusive of the prestige and mass markets, the future outlook for overall beauty is a positive one. In an industry steeped in emotion, consumers have demonstrated they are willing to continue to spend on beauty products. Beauty brings joy, which is a universal aspiration and will drive our industry’s resiliency in 2023.” – per NPD’s Larissa Jensen.
Prestige beauty growth
In 2022 U.S. prestige beauty sales revenue grew by 15% year-over-year, totaling $27.1 billion. The mass and prestige beauty product market revenue growth for 2022 was 11%. Only prestige unit demand remained strong. In prestige beauty, year-over-year brick-and-mortar retail share grew, while online sales shared increased in the mass market.
In 2022 U.S. prestige makeup sales increased 18%, comprising the most sales revenue gains for all the prestige beauty categories. The fastest growing sector was lip products, with sales surpassing pre-pandemic 2019 levels by double-digits. Lip gloss outperformed lipstick when compared both to 2021 and 2019.
In 2022 U.S. prestige fragrance sales increased 11% in 2022, which was driven by higher fragrance concentrations like eau de parfums and parfums, and the higher-end artisanal fragrance juices.
In 2022 U.S. prestige hair product sales grew 22% in 2022, propelled by masks and targeted treatments. Mass hair care was among one of the sector’s top decliners according to NPD.
75% of U.S. beauty-buying females say that beauty-buying has become as important or more important to them now, post-pandemic, than it was prior to the pandemic’s onset. Will buying tendencies remain as strong in 2023, despite inflation and possible recession? Although this is not clear yet, what is clear is that the uncontrolled enthusiasm to try new beauty offerings in the coming year has not been altered by a less-than-rosy economic outlook.
Trying new beauty products
In 2023 beauty consumers are most interested in trying new products from the big three areas: facial skin care, hair, and makeup. The consumer wants more innovative products than what she/he is already using rather than truly disruptive product types. What to look for:
- Facial skin care: A wide variety of product types that promote younger looking skin/anti-aging, exfoliators, masks, moisturizers, retinol and retinol alternatives, and serums. The emphasis is on skin aging prevention for younger consumers and anti-aging/maintaining for older consumers.
- Hair care: Anti-frizz products, curl products, new at-home color products, hair growth products, hair masks, oils, conditioners (leave-in and traditional) and scalp treatments.
- Makeup: Eye makeup products as a whole were cited most often, specifically eye shadows with innovative new palette colors, products to promote thicker/longer/fuller lashes, brow products (specifically stickers), contour products and skin-friendly foundation formulas.
Other areas of interest are body care, anti-aging body care, scrubs, and firming products. As for sun care, consumers are looking for natural and fewer chemical sunscreens, tinted facial sunscreens, mineral sunscreens, and moisturizing sunscreens.