January 14, 2004

By: Nicole Sims
Website: http://www.1st-in-cosmetics.com

NPD reports sales of luxury skincare products experience double-digit growth

According to leading market information company The NPD Group, Inc. luxury skincare products (skincare products priced at and over $70) in 2002 generated $169 million in U.S. department store sales, a 43 percent increase in dollar volume over 2001. Sales of luxury skincare products in 2002 more than doubled in dollar volume from 1999. The category grew from a four percent dollar share of the beauty market in 1999 to a 10 percent dollar share in 2002.

According to NPD, retail prices of total beauty products (fragrance, skincare and makeup) in 2002 increased three percent in U.S. department stores, led by skincare products. Fueled by the introduction of new luxury skincare products, new products were 22 percent more expensive than products on the market for over one year and average prices increasing by five percent in 2002 (the steepest increase in five years).

"The increase in pricepoints and the double-digit growth of the luxury skincare category is a strong indication that consumers are willing to pay any amount for these technologically advanced products because they promise exclusive benefits and results," said Timra Carlson, president, NPD Beauty, a division of The NPD Group.

Cosmeceuticals (doctor-prescribed brands) and clinical/spa brands are also on the rise. According to NPD, these brands have grown from a two percent dollar share of the market in 1998 to a seven percent dollar share in 2002. While the total skincare market grew by just three percent in dollar volume in 2002, cosmeceuticals and clinical/spa brands outpaced the market at a phenomenal rate of 62 percent.

There are a number of brands driving the growth in the luxury skincare category, including Lancome, Estee Lauder, Chanel, Shiseido, La Prairie, Clarins and Prescriptives. Together, these brands represented over 80 percent of luxury skincare sales in 2002. Some of the highest priced luxury skincare products sold in U.S. department stores in 2002 were: La Prairie’s Skin Caviar Luxe Body Cream, Estee Lauder’s Re-Nutriv Line, Yves Saint Laurent’s Temp Mejeur Facial Moisturizer and Shiseido’s Future Solution.

About The Author:

Nicole Sims is a successful author and regular contributor to http://www.1st-in-cosmetics.com.  Tips on skin care, hair care and beauty products to bring out natural beauty.