Market researcher NPD reports that premium anti-ageing products priced between £50-200 experienced the strongest growth, with those priced between £50 (€63) and £100 (€126) up 28 per cent while those priced over £200 (€252) were up by 9 per cent.
Furthermore, the market researcher notes that the strength of the premium sectors has led to year-on-year growth of 6 per cent in value sales across the entire anti-ageing category.
“Clearly anti-ageing products continue to appeal to beauty consumers, but both consumers and brands are working harder and smarter to get more value for their respective budgets. Product innovation, targeted and personalised gifting, limited edition products and beautiful packaging are all playing their parts in the growth of this sector,” says June Jensen, director for NPD Group Beauty.
Growth drivers
According to the market analyst, the growth of the segment is primarily due to the success of new launches from brands such as Shiseido, Guerlain, Chanel, Lancome and La Mer.
“Shiseido enjoyed a 48 per cent growth, while Guerlain and Chanel experienced 32 per cent growth. Without the success of new launches and new gift sets, the segment would be in a decline of 16 per cent year-on-year in values sales.”
And it’s not just gifting, brands that launched limited edition products in line with British celebrations are said to have seen considerable success like Lancome’s customized bottles of serums to celebrate the Queen’s Diamond Jubilee and Genefique’s embellished red, white and blue crown.
Downside...
Despite the good news that premium products are doing well in a recessionary market, NPD does point out that consumers are restricting their spending on entry and middle market prestige products, which results in a more fragmented market, a price of extremes if you like.
“Sales have declined by 30 per cent in the last year for products priced under £30 (€37), while products priced between £30 and £50 (€63) were down by 8 per cent.”