Fine fragrance sales are soaring. Beauty enthusiasts turned to fragrance in a big way during the first half of 2021, according to NPD. At the recently-concluded Cosmprof North America, NPD Vice President of Beauty Larissa Jensen told attendees that fragrance sales in prestige channels soared 82% year-over-year from January to June 2021. Even when NPD compared six-month results to 2019, sales outperformed expectations—up 35%.
 
Although fragrance posted the biggest gains in the first half of 2021, sales rose in every beauty category, according to NPD:
 
Makeup, $3.2 billion, up 22%
Skin Care, $2.9 billion, up 21%
Fragrance, $2.3 billion, up 82%
Hair, $648 million, up 59%
 
Why the interest in fragrance? According to Jensen, beauty consumers treat themselves with fragrance.
 
“Fragrance ranks higher than other categories for those looking for a way to treat themselves, rather than fulfill a specific need,” said Jensen. 
 
The top dollar gainers in the prestige beauty universe have changed dramatically as shoppers emerged from lockdowns. In 2020, beauty’s top dollar gainers were hair treatments, facial exfoliators, hair sets, facial devices, facial sun protection and hair shampoo. But in 2021, the biggest gains came in the fragrance space: Fragrance EDP, fragrance EDT and fragrance sets; followed by face serums, face creams and makeup foundation. 
 
When it comes to fragrance, consumers want the strong stuff with staying power. According to NPD, nearly 80% of fragrance consumers consider “long-lasting” to be important or extremely important when purchasing a fragrance. That’s especially true among Millennial and Gen Z shoppers. With younger age groups taking an interest in fragrance, it comes as no surprise that more than half (55%) of fragrance consumers take sustainability seriously; that’s five points higher than the average consumer, according to NPD.
 

Clean & Clinical

Within skin care, NPD research found that consumers are gravitating toward clean and clinical brands; i.e., brands that highlight “clean” ingredients, are gentle on the skin and endorsed by a doctor. More specifically, 70% are interested in trying new things in skin care products; 68% seek brands that use “clean” ingredients; 62% use skin care products formulated for sensitive skin and 52% prefer brands endorsed by a physician/doctor, according to results of NPD’s consumer survey. But usage patterns vary by age. Jensen said younger women are increasingly incorporating eye treatments and serums in their routines, while older women report flat or declining usage. 
 
Skin care means UV protection, too. As shoppers get out more, sales of sun café products aimed specifically at protecting the face increased over 70% compared to 2020 and 2019, according to NPD. Protection even extends to lip care, too. Jensen said formulas that provide skin care benefits had sales gains of 47%. Lip plumpers did even better as sales rose 54% for the six months. Makeup trends on the rise include contouring and a more dramatic look. 
 
Within hair care, NPD reports that hair styling products experienced a resurgence. After enduring the biggest decline in 2020, they had one of the strongest performances in the first half of 2021, growing nearly 59%. At the same time, at-home hair color continued to post double-digit gains. Jensen theorized that consumers realized their own coloring and hair care talents during the pandemic. 
 

Broad Gains Across the Board

When consumers get the opportunity to, well, consume, they do just that. Sales gains came across the board—and not just in beauty, according to Jensen. Dollar sales rose 13% for week-ended July 24, 2021 v. a year ago and were up 17% compared to 2019. Categories range from apparel and auto parts to housewares and footwear to toys and video games. 

“Factors affecting this unprecedented growth include vaccine rollouts, promotional activities and consumers getting back to in-person activities,” she noted.

With more consumers getting out and going shopping, online prestige beauty sales fell 10% compared to 2020, according to NPD. Moreover, US price promotion continued to grow online in the first half, according to Jensen.

“Makeup faces the biggest challenge in the online channel, with higher promoted sales levels and deeper discounts than other beauty categories,” she noted.
The depths of those online discounts ranged from 18% for fragrance to 25% for makeup.

 
Global Gains in Prestige Beauty

Global prestige beauty sales rebounded around the world. According to NPD, US prestige beauty dollar sales rose 35% for the first half of 2021. Other markets posting gains include:
 
Canada, +10%
China, +47
France, +7%
Italy, 31%
Mexico, +66%
Spain, +37%
UK, +11%
 
Only Germany disappointed, with prestige beauty sales declining 19% during the first half. With every category up in every country, it's no surprise that NPD predicts total beauty will post 26% gains on the year—that’s even 2% higher than 2019 sales.