The U.S. beauty industry is thriving as it heads into the 2024 holiday season, with positive projections for consumer spending and category growth. According to Circana’s 2024 Holiday Purchase Intentions Report, factors like higher-income households, e-commerce growth, and social media influence are shaping a vibrant beauty market this year.
Holiday Shopping Trends in the Beauty Industry
Consumers Plan to Spend More This Holiday Season
Circana’s report reveals a 2% increase in planned holiday spending compared to last year, with Black Friday expectations hitting a four-year high. Beauty products are a top choice for gifting, with 29% of shoppers intending to buy beauty items, up slightly from 2023.
Families Driving Beauty Product Demand
- 41% of households with children plan to buy beauty gifts this year, 11% higher than the overall average.
- Parents of Gen Alpha children are indulging in prestige beauty products, further fueling demand.
Sales Performance Across Beauty Categories
The U.S. prestige beauty market continues to outperform expectations, with notable growth across multiple categories.
Makeup Category Leads the Way
- Makeup sales grew by 5% in both dollars and units.
- Lip products surged by 21% in dollar sales, thanks to the rising popularity of tinted lip balms and oils.
- Blush saw double-digit growth, affirming its status as a consumer favorite.
Skincare Trends Show a Shift
While prestige skincare grew by 3%, masstige skincare brands are growing six times faster. Consumers are gravitating toward affordable skincare solutions, as unit sales outpaced dollar growth.
Haircare Shines Bright
- Prestige haircare sales rose by 8%, with hair wellness products like scalp care and heat protectants leading the way.
- Hair styling emerged as the fastest-growing segment, supported by strong e-commerce performance.
Fragrance: The Star Performer
- Prestige fragrance is the fastest-growing category, with sales up 14% in dollars and 12% in units through September.
- Smaller-sized fragrances under 1 oz. grew four times faster than other sizes, indicating a shift in consumer preferences.
- The holiday season traditionally accounts for over 40% of annual fragrance sales, making Q4 crucial for the market.
Social Media and E-commerce Drive Beauty Sales
Social media trends are a key driver of consumer interest, especially among younger generations. Simultaneously, e-commerce continues to dominate, particularly in the haircare and fragrance categories. Over half of department and specialty store haircare sales come from online channels, highlighting the importance of digital platforms.
Positive Outlook for Q4 in the Beauty Industry
With consumer sentiment improving and key beauty categories showing robust growth, the U.S. beauty industry is poised for a successful holiday season. Early indicators from Q3 align with forecasts for strong Q4 performance, especially in fragrance and haircare.
Conclusion
The U.S. beauty industry continues to thrive, driven by innovative products, social media influence, and e-commerce convenience. As shoppers gear up for the holiday season, prestige beauty categories are set to shine, offering both indulgence and meaningful gifting opportunities. This holiday season could solidify 2024 as a landmark year for the beauty market.
