Colour Cosmetics in the US

PRE-COVID-19 PERFORMANCE

Colour cosmetics slowdown continues, but could partnerships and new niches help turn this round?

Following years of strong gains, colour cosmetics in the US continued to see a worsening performance in 2019 as consumers shifted to skin care and fashion and beauty enthusiasts reduced their spend. Consumers switched to skin care products as health and wellness trends assumed a greater priority, resulting in some cannibalisation.

Inspiration from skin care creates opportunities for niche growth

Despite an overall slowdown in colour cosmetics, several categories are ripe for growth, including foundation/concealer, lipstick and other lash and brow make-up. Foundation/concealer brands are incorporating ingredients commonly found in skin care, such as Tarte Amazonian’s clay foundation and Beautyblender’s Concealer with hyaluronic acid and tetrapeptides in 40 shades.

Emerging brands performing well, with clean beauty driving acquisitions and investments

The softening in colour cosmetics affected leading brands. The top three colour cosmetics brands – Maybelline (L’Oréal Groupe), Mac (Estée Lauder Cos Inc) and L’Oréal Paris (L’Oréal Groupe) – each experienced sales declines in 2019.

2020 AND BEYOND

COVID-19 impact

Sales of colour cosmetics are now expected to decline by 7% in 2020 at constant 2019 prices in light of the impact of COVID-19. This compares to an expected 4% fall forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within colour cosmetics

Nearly all product areas across colour cosmetics are expected to record declining sales in 2019 constant terms during 2020, with some even turning in double-digit falls, exacerbated by the COVID-19 pandemic. Home seclusion trends in 2020 are accelerating the declines in colour cosmetics already being seen in 2019.

Recovery and opportunities

While 2020 will see the worst annual performance over the forecast period, 2021 will still see colour cosmetics in the US underperforming the most recent forecasts, with colour cosmetics only managing to – just – return to positive value growth at constant 2019 prices in 2024.

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