Despite Economic Challenges, U.S. Beauty Industry Shows Continued Growth

The U.S. beauty industry is thriving in the first quarter of 2024, with prestige beauty sales soaring by 9% compared to the same period last year. According to Circana, the mass market sector also experienced growth, albeit more modestly, with a 2% increase in sales.

Fragrances were the star performers in the prestige segment, with a remarkable 13% increase in sales. Gift sets, especially travel-sized sets, saw a significant surge of 22%, indicating a trend towards more affordable and compact products. Luxury products also saw a doubling in sales, despite the overall shift towards lower-priced items.

The ‘Gen Alpha effect’ was evident in the industry, with high-income families with children doubling their spending on prestige fragrances compared to families without children. Skincare sales in the prestige category saw the fastest growth in both markets, with body sprays and face serums leading the way.

While makeup was the slowest-growing category, lip makeup experienced a strong increase of 26%, driven by tinted lip balms and oils. Hair care products also saw robust growth, particularly those focused on hair health, such as treatments for hair thinning and loss, oils, serums, and scalp care.

Larissa Jensen, Global Beauty Industry Advisor at Circana, highlighted the industry’s resilience, stating that despite a slight slowdown in growth, sales increased by over $600 million in Q1. With upcoming events like Mothers’ and Fathers’ Days and summer activities, the demand for beauty products that enhance appearance and mood remains high. The industry continues to show enthusiasm for new products and brands, indicating a bright future ahead.