beauty industry

Beauty Industry Shows Slowing Growth Trends Circana Report Shows

Beauty Industry Shows Slowing Growth Trends

Data from Circana indicates a 9 percent increase in beauty overall, with a 2 percent growth in the prestige and mass markets in the U.S. during the first quarter of this year. Larissa Jensen, Circana’s global beauty industry adviser, noted the slowdown, stating, “The expectation has always been that at some point, the industry performance would soften. That’s what’s happening.”

In the prestige segment, makeup, skin care, hair, and fragrance saw respective growth rates of 5 percent, 10 percent, 11 percent, and 13 percent. Conversely, makeup declined by 5 percent, and fragrance dipped 2 percent in the mass market, while hair and skin care grew by 1 percent and 4 percent.

Jensen highlighted that despite the slowdown, beauty remains the fastest-growing industry in Circana’s coverage. She also noted a shift in consumer spending, with those shopping prestige typically earning over $100,000 annually, while mass shoppers earn under $100,000.

Fragrance growth spanned from ultra prestige to lower-priced body sprays, with Gen Alpha driving the trend. Jensen mentioned that luxury fragrances grew at double the rate of overall prestige fragrances, with gift sets increasing by 22 percent.

In the makeup category, lip products showed the strongest performance, particularly balms and oils, with a 26 percent increase in sales. Jensen predicted that skin care might surpass makeup in performance this year as clinical brands lead the skin care segment, with body sprays being the top gainer.

Hair care growth in prestige mainly stemmed from salon brands and celebrity brands, with salon brands and wellness products driving growth. Hair thinning products, oils, serums, scalp care, and heat protectants saw double-digit growth, while mass hair care remained stable due to its large size.