Luxury Cosmetics Outshine Economy Brands in Sales Growth: According to Circana
Glorified Growth in the Beauty World
💁♀️ It's no secret that the beauty biz is blooming! Whether affording or swanky, both mass-market and high-end beauty brands are raking in the cash, as per Circana's latest analysis of receipt-driven data.
💰 This year, mass-market beauty sales rose by a steady 6%, while prestige beauty brands saw their sales soar 14% from the previous year, raking in a jaw-dropping $31.7 billion in 2023.
💇♀️ What's more intriguing is the statistics for the hair care sector. Prestige hair care brands enjoyed a terrific 14% surge compared to mass-market hair care brands’ paltry 6% year-over-year sales boost. Notably, the majority of sales in this category (52%) happened online.
💄 Prestige skin care brands also made their mark, with sales increasing by 14% year over year. High-end lip makeup sales, such as tinted lip oils and balms, skyrocketed by 31%, according to the report.
🔍 Lacquering the broader picture, Circana's report points to consumers' continued splurging on cosmetics and skincare amidst economic uncertainties. Beauty sales are projected to keep climbing by 6% annually through 2027, according to a report from McKinsey & Company and The Business of Fashion.
- In the year 2024, the beauty industry is expected to tap into finance and technology for further growth, according to projections by McKinsey & Company and The Business of Fashion.
- With the rise of online shopping, the majority of sales in the prestige hair care sector occurred digitally.
- The beauty world has also shown a significant interest in education-and-self-development, with many brands investing in research and development for new products.
- The general news regularly covers the glorified growth in the beauty business, highlighting the impressive earnings of both mass-market and high-end beauty brands.
- Luxury cosmetics, such as tinted lip oils and balms, are leading the trend in the prestige skin care market, with sales increasing by 31%.
- The beauty business is not just about fashion and lifestyle anymore; it's becoming an integral part of the broader business world and contributing significantly to global earnings.
- While mass-market beauty sales rose by a steady 6%, prestige beauty brands saw their sales soar 14% from the previous year, marking a notable difference in earning potential.
- Amidst economic uncertainties, consumers continue to splurge on cosmetics and skincare, a trend that is anticipated to continue, with beauty sales projected to keep climbing by 6% annually through 2027.
