The NPD Group report that sales of super-sized and potent formula prestige beauty products have seen double digit growth in the six months of 2022.
Valued at £962m in the first half of 2022, the prestige beauty market saw an increase of 23% on the same period in 2021. This is being attributed to the trend of ‘premiumisation’, where consumers upgrade their beauty purchases to include larger sizes and more potent formulas.
The NPD Group also indicate that consumers appear to be upgrading their purchases to items with a higher price point, with the average sales price of prestige beauty products in the first half of 2022 increasing by 8%, compared to the same period last year.
Fragrance is in fashion
The premiumisation trend is most evident in the prestige fragrance market, with both men’s and women’s eau de parfum and perfume formats increasing in importance and growing faster than the rest of the market. In the first half of 2022, sales of women’s perfume formats rose 137% compared to the same period in 2021, and sales of men’s perfume formats doubled in the same period.
Total sales of women’s fragrance (including formats like eau de toilette, eau de parfum, and perfume) increased 34% and sales of fragrance juices over 100ml in size rose 50% in the first half of 2022, compared to the same period in 2021. Sales of fragrance juices in the first half of 2022 with a retail price over £125 now equate to 11% of the mix of total fragrance sales, compared to 7% of the mix of total fragrance sales in the first half of 2021. Sales of these products with a retail price of £125 and above increased 91% in the first half of 2022, compared to the sales for the total fragrance market where the uptick was 33%.
Good foundations
In the first half of 2022, the average sales price of prestige foundations was £30, an increase of 10% compared to the same period last year. The NPD Group attribute this increase to innovation and newly launched products. The top five new foundation products launched in the first half of 2022 have an average sales price between £32.45 and £37.69, demonstrating the impact of premiumisation in this sub-segment.
Super skincare
The average retail price for women’s skincare products increased 7% in the first half of 2022, compared to the same period in 2021. Women’s prestige skincare sales were up 8% year-on-year whilst mid-range skincare sales increased by only 4%, indicating that women are opting for more premium products with a higher price point.
“Consumers are increasingly choosing to buy more premium products with a higher average sales price in the prestige beauty market. While we recognize that there is pressure on people’s expenditure now, and people are seeking better value for money, and larger sizes and more potent formulas are more cost effective to buy.
We believe that people are buying less and upgrading their purchases to those with more innovative formulations (as in make-up and skincare) and in fragrance they are opting for more expensive bottles and the most potent fragrance formulas. There is also the lure of premium brands where people can ‘buy into’ designer brands in an affordable way.”– Emma Fishwick, Account Manager, NPD UK Beauty
