Overall: Growth Slowing, But Still Positive
Prestige beauty sales grew 9% year-over-year, while mass market sales grew 2%. This indicates a slowdown, but the industry is still expanding.
Stabilization is expected after strong performance in the past two years.
Category Highlights
Fragrance: Fastest growing prestige category (+13%). Gift sets are outpacing traditional products, and travel-size sets are seeing significant growth.
Luxury fragrance is also outperforming the rest of the market.
Interestingly, families with children are driving spending in this category.
Skincare: Grew 10% in prestige and was the fastest-growing category in the mass market.
Body spray and face serum saw notable growth, driven by new clinical brand launches.
Makeup: Softest performer in both markets, but remains the largest prestige category.
Lip products did well (+26%), specifically tinted lip balms and oils.
Hair: Prestige saw continued double-digit growth.
Hair wellness remains a key focus, with strong sales in thinning/loss products, oils, scalp care, and heat protectants.
Celebrity brands grew the fastest (+64%) within the hair category.
Circana's Interpretation
Larissa Jensen highlights that the slowdown is natural after two years of exceptional growth, but the industry remains strong with over $600 million in additional sales in Q1.
Excitement surrounding new brands, launches, and younger consumers will continue to drive the market.
Additional Points to Consider
Gen Alpha effect: The influence of younger family members on prestige fragrance spending is an interesting trend to watch.
Mass vs. Prestige: The skincare category's dominance in the mass market indicates consumer desire for effective products, even at lower price points.
Innovation: Continued success will hinge on new product launches that meet evolving consumer needs (e.g., focus on hair wellness).
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