Resilience and Growth: U.S. Beauty Industry Performance in Q1 2024
The U.S. beauty industry is thriving in 2024, with prestige beauty sales soaring by 9% in the first quarter compared to the same period last year, according to data from Circana. While the mass market sector saw a more modest growth of 2%, the prestige segment is leading the way with impressive numbers.
Fragrances were the standout category in the prestige segment, with a 13% increase in sales. Gift sets, including travel-sized options, saw a remarkable 22% growth, indicating a trend towards more affordable and convenient products. Even luxury items saw a surge in sales, doubling their numbers from the previous year.
The ‘Gen Alpha effect’ was a significant factor in the industry’s success, with high-income families with children doubling their spending on prestige fragrances compared to families without children. This group also saw their average spending increase fivefold, showcasing their influence on the market.
Skincare sales in the prestige category experienced the fastest growth in both markets, with a 10% increase. Body sprays and face serums were the top performers, with body spray sales nearly tripling since last year, suggesting that consumers are investing more in skincare products.
Makeup was the slowest-growing category, but lip makeup saw a strong increase of 26%, driven by tinted lip balms and oils. Hair care products also saw double-digit growth, particularly those focused on hair health such as treatments for thinning hair, oils, serums, scalp care, and heat protectants. Celebrity-branded products in this category saw a 64% increase in sales.
Larissa Jensen, Global Beauty Industry Advisor at Circana, commented on the industry’s performance, noting that while there has been a slight slowdown in growth, the industry remains strong with sales growing by over $600 million in the first quarter. With upcoming events like Mothers’ and Fathers’ Days and summer activities, the demand for beauty products that enhance appearance and mood is expected to remain high.