Sales of U.S. prestige beauty products grew by 15% in 2022, says NPD

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30 January 2023

Sales of U.S. prestige beauty products grew by 15% in 2022, says NPD

U.S. prestige beauty industry sales revenue grew 15%, year over year, to reach USD 27.1 billion in 2022, according to The NPD Group. All prestige beauty categories grew by double digits with makeup rising 18%, skincare growing 12%, fragrance increasing 11%, and hair products up 22%.

Proving resistant to economic uncertainties, the U.S. prestige beauty market jumped by an impressive 15% in 2022, compared to last year. Beauty products overall experienced consistent revenue growth across both the mass and prestige markets, up 11% when combined; however, only prestige unit demand remained strong. The U.S. prestige beauty market also experienced a greater shift back to stores in 2022, with year-over-year brick-and-mortar retail share growing, while online sales share increased in the mass market.

All prestige beauty categories grew by double digits but makeup products (+18%) contributed the most sales revenue gains of the overall prestige beauty market. Lip products was the fastest-growing segment in makeup, with sales surpassing pre-pandemic 2019 levels by double-digits. Lip gloss outperformed lipstick, compared to both 2021 and 2019.

Fragrance (+11%) was a standout category in its own right. Building on stellar performance as the industry’s fastest-growing category in 2021, the fragrance market not only maintained this elevated level but continued to grow, led by both higher fragrance concentrations such as eau de parfums and parfums, and higher-end artisanal fragrance juices.

In skincare (+12%), body products grew at more than three-times the rate of facial products.

Hair (+22%) was the smallest, yet fastest-growing, prestige beauty category, led by masks and targeted treatments. Interestingly, hair care ranked among the fastest-growing segments in the prestige beauty market based on dollar sales growth, whereas hair products like shampoo, conditioner, and hair color landed among the top decliners in the mass channel, based on unit sales.

According to NPD, the factors supporting prestige beauty growth — including increased spending from higher income consumers, the redefinition of wellness emphasizing mental health, and an increase in socialization — will continue to fuel positive performance this year.

“Looking at the industry holistically, inclusive of the prestige and mass markets, the future outlook for overall beauty is a positive one,” said Larissa Jensen, beauty industry advisor at NPD. “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.”