The first quarter of 2025 brought with it a shifting dynamic in the US beauty industry. For the first time in several years, year over year mass beauty sales outpaced prestige sales, according to Circana.
While prestige sales were flat in Q1, mass beauty sales rose 3%. The boost for the mass market was driven largely by price bumps, while unit sales dropped 1%. Consumers pulled back on spending in the prestige market in January, a trend which improved throughout February and March, when all prestige categories saw a sales lift.
The industry “will continue to stabilize” after a strong performance from prestige last year, Larissa Jensen, global beauty industry advisor at Circana, said in a statement, directing beauty companies to focus on “creating brand value beyond price and focusing on compelling value propositions and high-margin innovations to appeal to consumers.”
Category close-up: Fragrance retained its spot as the best performing beauty category, with sales jumping 4% in prestige—where minis and travel sets prevailed—and 8% in mass.
Prestige makeup, the largest prestige category by sales volume, saw a 1% sales dip. Face and eye products had a tough quarter, but stick formats, including eye shadow and foundation, rose double digits. Lip product sales were stagnant, though liners, oils, and balms saw success.
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Skin care was the toughest category for prestige sales, dropping 3%, despite a 1% unit volume rise. Mass, however, saw both sales and unit volume rise. Facial skin care—serums, exfoliators, and lip treatments—declined, while segments like body and sun care grew.
Hair was a bright spot for prestige, garnering 4% sales growth along with growth in mass. Prestige hair styling products rose 12%, while the hair wellness segment, with offerings like scalp care products, was popular.
What beauty CPGs are saying: Many CPGs’ recent earnings largely reflected these trends. L’Oréal reported a sales drop in North America, with fragrance in its L’Oréal Luxe division noted as a highlight. Mass hair care brands like Garnier and lip products saw success, while skin care struggled. Unilever, which sells mass brands like Tresemmé and Dove, saw 6.2% sales growth in North America thanks to premiumization in its beauty and wellbeing and personal care segments. Prestige giant Estée Lauder said earlier this month its sales declined 5% in North America, as consumer confidence and sentiment drop. For Coty, both prestige and consumer beauty revenue dropped in the Americas, it said this month, though US fragrance continues to grow.