As we journey further and further into 2023, the U.S. beauty and personal care category continues to grow, delivering a 12% increase in dollar sales in the second quarter of 2023, and reaching $25B in sales. Over the past year, sales were up 11% to a total of $96.6B for the category. While online sales remain the growth driver in Q2, with a growth of 18% quarter over quarter, in-store sales also delivered an impressive 9% growth in Q2.
 
The beauty and personal care category continues to grapple with inflationary pressures, resulting in a consistent uptick in prices. However, despite these price hikes, unit sales have rebounded this year, indicating that consumers remain committed to investing in their beauty regimens and are unwilling to abandon their routines.
 
Dollar growth in Q2 2023 could be found across the entire category, but a few segments really stood out:

Facial Treatments, +36%

Facial serums and similar treatments have gained popularity, becoming a routine part of consumers' skincare regimens. This increased awareness has led the younger Gen Z generation to start using skincare products at a younger age, embracing preventive measures and exploring innovative treatments like acne patches.

Lip Cosmetics +27%

The enduring relevance of the "lipstick index" persists as consumers increasingly turn to this affordable mood booster during periods of economic uncertainty. Summer trends may also have boosted these numbers as trends circulated on platforms such as TikTok and Instagram.

Men’s Hair Grooming +21%

Men are dedicating more time to their grooming routines, seeking out products tailored specifically to their needs. As some of the stigma of men taking care of their appearance starts to fade, some are even actively sharing their grooming rituals on social media.

Cologne and Perfume +13%

We find ourselves in an ongoing fragrance era, with an emerging trend among Gen Z consumers who are fervently exploring their passion for scents. These young consumers are not only enthusiastic about fragrance, but are also open to the concept of purchasing fragrances "scent-unseen."

Artificial Nails +13%

Artificial nails have surpassed traditional nail polish in sales, thanks to advancements in product technology and the increasing costs associated with nail salon visits. In response to these changes, a growing number of consumers are opting for DIY nail kits to achieve their desired nail aesthetics as an affordable alternative to nail salons.

Conclusion

The beauty and personal care category’s remarkable growth in Q2 reflects both evolving consumer preferences and their determination to prioritize self-care. Despite economic uncertainties and price hikes, consumers are embracing innovative products and maintaining their beauty routines. This sector's success story is a testament to its adaptability and resilience in catering to the ever-changing demands of consumers.
 
About the Author:
Anna Mayo is VP Beauty Vertical NIQ, and a frequent contributor to Beauty Packaging.
 
Source: NielsenIQ Omnishopper; Beauty & Personal Care (Bath & Shower, Cosmetics & Nail, Deodorant, Facial Skin Care, Fragrances, Hair Care, Hair Removal, HBL, Sun Care.