US luxury cosmetics market grows 8% in first half of year | kbnmart

According to a study by market research group Circana, the US luxury cosmetics market generated revenues of $15.3 billion (€13.8 billion) between January and June 2024, up 8% from the previous year. The US is the world’s leading beauty market, and has been closely watched by industry players since consumption slowed in China, another heavyweight sector. In contrast to the luxury cosmetics market, beauty products at mass-market retailers in the US have performed poorly, with segments such as makeup and fragrances posting negative results.

The growth of the luxury beauty segment in the first half of the year in the United States was driven by the fragrance category. In the first half of the year, fragrance sales grew 12%. Sirkana noted that while the category as a whole recorded positive results, cheaper products, including miniatures and body mists, contributed to its success.

“Small and travel sizes grew twice as fast as the entire fragrance category. Among younger consumers, body sprays and mists, with an average price of less than $25, doubled revenue compared to the first half of 2023,” according to Circana.

Cosmetics sales, which remain the key category in the luxury beauty market, grew 5% year-on-year. Lip products recorded double-digit growth, led by lip balms and lip oils. Innovative and unusual product formats such as liquid blush, foundation and eyeshadow also performed well.

In the first half of the year, skincare sales rose 7% by value in the U.S., with body care seeing the strongest growth. According to Circana, spending on luxury body care products increased 25% in the first half of the year, and the number of buyers in the category increased 17% compared to last year.

Finally, sales of luxury hair care products rose 10%. Sales of hair products with an average price of more than $30 grew three times faster than sales of cheaper products. They now account for 25% of category unit sales, up from about 15% three years ago. It’s also the only category in the U.S. luxury beauty market that generates a larger share of its sales online.