Diverging Trends: Prestige Beauty Soars as Mass Market Stagnates in 2024's First Half

In the first half of 2024, the U.S. beauty market demonstrated a distinct divergence between its prestige and mass market segments. According to data from Circana, while the overall beauty market was valued at $15.3 billion, the prestige sector experienced a robust 8% growth, contrasting sharply with the relatively stagnant performance of the mass market.

The data reveals that while dollar sales are increasing, unit sales in the mass market have declined, suggesting that price hikes rather than increased consumer demand are behind the revenue growth. In contrast, all categories within the prestige market saw growth in unit sales, with fragrance, hair, skin care, and makeup growing by 12%, 10%, 7%, and 5% respectively.

Fragrance emerged as the fastest-growing category in the prestige segment, with body mists and sprays, often priced under $25, seeing a significant revenue increase. This growth in more affordable product types within the prestige space is reflective of a broader trend where consumers are seeking premium experiences at more accessible price points.

In makeup, prestige beauty's largest category, innovative product formats like liquid blushes, stick foundations, and varied eye shadows have performed well, suggesting a consumer preference for versatility and novelty. Conversely, in the mass market, only specific products such as lip gloss and lip liner showed notable resilience.

Skincare saw the most substantial growth in unit sales within the prestige sector, particularly in body care products like body sprays, which experienced triple-digit growth. This shift towards body-focused skincare products represents a significant area of consumer spending, which increased by 25% year-over-year.

Haircare in the prestige sector also benefited from a trend towards premiumization, with products priced over $30 growing three times faster than their more affordable counterparts, and e-commerce emerging as the primary sales channel for this category.

Overall, the first half of 2024 highlighted a clear trend of bifurcation in the beauty market, with a shift towards higher-quality, value-oriented products in the prestige segment, contrasting with a more challenged mass market facing flat growth and declining unit sales.