US prestige beauty industry sales hit $14 billion in the first half of 2023, a 15% increase versus the same period in 2022 according to Circana. In comparison, the mass beauty market generated $28 billion and grew 9%.
Makeup ended the first half of 2023 as the fastest growing category in beauty, with sales revenue up 18%, outpacing sales at mass merchants by growing at twice the rate. Lipstick and lip makeup was the fastest-growing segment across all the beauty categories.
These results come during a time when makeup usage is also on the rise. According to Circana’s 2023 Makeup Consumer Report, makeup usage increased by 3 percentage points in the past year and has surpassed pre-pandemic levels.
Face serum, body spray, and facial cleansers were the top gainers in the prestige skincare market for the first half of 2023 but overall facecare usage in the US remains flat when compared to last year, according to Circana’s 2023 Facial Skincare Consumer Report.
While usage remains consistent, product preferences are shifting. Consumers are increasingly turning to hybrid products that address both skin concerns and provide makeup coverage for users. Circana also found more channel blending is taking place as 67% of consumers feel that skincare brands at drug stores or mass merchandisers are as good as higher priced brands, a sentiment which is up from last year.
Hair product sales continue to grow at a fast pace, with online capturing about half of the sales. Hair is also the category with the highest average price increase in the prestige beauty market, increasing at three-times the rate of the overall industry.