NPD Research Shows Spa Products Bright Spot in Prestige Beauty Industry

NPD Group Prestige beauty industry sales declined 3% in 2008 versus 2007, according to market research company The NPD Group. Although sales in most categories were down, there was positive growth in several spa product categories. Among the products with strongest revenues were anti-aging, specialization, premium price, and natural brands.

Prestige skin care remained relatively flat from 2007 capturing 29% of prestige beauty sales. Total prestige skin care products, which include face, body, sun and hair products, generated $2.4 billion in 2008. Products that offered specialization were up double digits, and premium priced face products (priced $70 and up) increased 4% in dollars from 2007. Lastly, natural/spa/wellness skin care brands showed the strongest dollar growth of the distinctive brand types, up 6% from 2007 numbers.

"In 2009, we recognize that while consumption will not stop for prestige beauty, it has changed," remarked Karen Grant, senior global industry analyst and vice president of NDP's Beauty Group. "It has become and will become more careful, more selective, and more meaningful. Across all three prestige beauty categories, there were areas that experienced growth despite overall soft performance."

2008 marked the first time makeup products posted a decline, dropping 3% in dollars and 6% in units. All segments in the makeup category showed declines including face, eye and lip segments. One bright spot in the makeup category was natural makeup, which continues to cross over into the skincare category with a breadth of prestige offerings.