Premium Beauty and Personal Care in the US

PRE-COVID-19 PERFORMANCE

Premium growth slows but still outpaces mass; wellness, natural, clean and gender-neutral trends to the fore

Premium beauty and personal care’s growth decelerated in 2019 in current value terms, driven by declines in premium colour cosmetics, which made up the greatest share of the premium category in 2019. 2019 marked a turning point for premium colour cosmetics, as more consumers shifted their purchases to skin care due to health and wellness trends.

Personalisation and artificial intelligence remain key concepts in premium beauty and personal care

The premium segment is harnessing personalisation technologies through DNA-based skin and hair care and real-time dispensing solutions that incorporate big data and user-volunteered data. While there is still debate on whether DNA-based skin or hair care is more effective than non-DNA-based skin or hair care, the elevated personalisation experience to the consumer and the opportunity to further educate consumers about skin health and hair health further differentiate the premium beauty segment from mass.

2019 acquisitions highlight a winning formula in skin care; luxury players enter beauty through colour cosmetics

Beauty acquisitions in 2019 were centred mainly in premium skin care, which has historically been driving the growth of the overall category. Unilever’s acquisition of Tatcha and Colgate-Palmolive Co’s acquisition of Filorga offers each parent company an expanded footprint in the premium space, while Dr Jart+ gives Estée Lauder Cos Inc a foothold in Asia and among younger consumers.

2020 AND BEYOND

COVID-19 impact

Premium beauty and personal care sales are expected to decline by 3% in 2020 at constant 2019 prices in light of the impact of COVID-19. A number of factors are conspiring against premium beauty and personal care in 2020.

Affected products within premium beauty and personal care

Premium colour cosmetics is being particularly badly hit by the impact of COVID-19 and the measures taken to contain its spread. Premium colour cosmetics overall will record a sharp decline in sales at constant 2019 prices in 2020, with some areas in it seeing double-digit falls.

Recovery and opportunities

Premium beauty and personal care is not expected to return to positive value growth at constant 2019 prices until 2022, although its performance will begin improving from 2021 thanks to a rebound effect after its struggles in 2020. It is expected to take a longer time recovering than it did after the financial crisis in 2008.

Files are delivered directly into your account within a few minutes of purchase.