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The U.S. Prestige Beauty Industry Experiences Renewed Growth Across All Categories

The NPD Group shares point-of-sale data from the third quarter of 2021.

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By: Charlie Sternberg

Associate Editor

According to point-of-sale date from the NPD Group, in the third quarter of 2021, U.S. prestige beauty industry revenue reached $4.9 billion, a 25% increase versus Q3 2020.
 
“Today, amid many uncertainties, we are seeing glimmers of normal life return which is helping the beauty industry to experience renewed growth across all its categories,” said Larissa Jensen, beauty industry advisor, The NPD Group. “Fragrance has emerged as the brightest star and is experiencing unprecedented growth against both 2020 and 2019. With the holiday season upon us, we can expect this momentum to continue through the fourth quarter.” 
 

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Makeup, the hardest-hit beauty category during the pandemic, continues to show revenue increases in 2021 as consumers want to put their best face forward as they re-enter society. Face makeup products including blush, bronzer, highlighter, and tinted moisturizer grew double digits, as did lipstick and lip gloss. This suggests that consumers are wearing more makeup these days. Makeup setting sprays and powders as well as makeup removers also grew in revenue.
 
Fragrance is outperforming other segments, with Q3 revenues not only up year over year, but also increasing by a whopping 38% versus pre-pandemic 2019. Juice sales rose by nearly 50% compared to Q3 2020, driven by eau de parfums and perfumes.
 
In skin care, products for the body grew faster than those for the face. From body cleansers and creams, to exfoliators and oils, body skin care sales increased in Q3 compared to 2020 and also saw significant revenue increases over 2019.
 
More targeted facial skin care products such as lip and eye treatments as well as serums saw healthy revenue growth in Q3.
 
Hair styling products including sprays and gels continued their upward climb in Q3 as consumers returned to more aspects of normal life. Hair masks was the fastest-growing segment of the hair market in Q3, as consumers placed greater emphasis not only on hair appearances, but on hair health.

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