Within the prestige beauty industry, there has historically been a cyclical pattern when it comes to makeup and skincare sales trends; when the growth rate is accelerating for one category, the other one is slowing down. This cycle appears to repeat itself every four to five years. In recent years, makeup was outperforming skincare. Some of this increase was driven by consumer excitement around makeup and reengaging with the category after the pandemic, as well as new and unconventional trends being seen on apps and social media like TikTok. At the same time, an underlying movement is reshaping the makeup market: a greater consumer focus on skin health, which could be fueling consumer interest in hybrid products crossing both makeup and skincare.*
Makeup products being formulated with skincare ingredients is not a new concept. But about a decade ago, there was an influx of BB and CC creams entering the market. These products met at the intersection of color and skincare, and consumers gravitated to these multi-benefit products. Eventually, makeup foundation started losing market share to its more natural looking and lighter coverage counterpart: tinted moisturizer. Today we are seeing the rise of tinted serums and oils – products that meet skincare needs, perhaps more than they address the cosmetic coverage that a complexion product would offer. With the focus shifting from color to skin benefits, this might impact the number of products a consumer decides to use interchangeably. The industry has an important question to answer: what feature or benefit will keep consumers excited about makeup?
For skincare, and perhaps to differentiate itself more greatly, the category is increasingly relying on product efficacy and ingredient innovation. While “skinification” is a trend in makeup, the skincare experts are reigning supreme when it comes to skincare product. Since the pandemic, clinical skincare brands have been the top brand type for this category. At the same time, brands with an alternative to mainstream skincare approaches are gaining consumer attention, signaling that they are open to new ways of addressing age old problems.
Looking at the 2023 prestige beauty sales revenue results, the makeup category grew faster than skincare; however, in the first quarter of 2024, skincare took the lead. Both categories are evolving, and each in their own way. Makeup and skincare brands need to explore new avenues where they can both meet consumers’ changing needs and curate excitement for beauty products.
Source: Circana, Beauty Trends®, U.S. Prestige Beauty Total Measured Market
Source: Circana, Makeup Consumer Report
By: Natallia Bambiza
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