The US prestige beauty market grew by 2% to $16 billion in the first half of 2025, according to market research outfit Circana.
Mass market sales in the first six months of the year were $34.6 billion, up 4% on the same period last year.
Mass skin care sales increased by 4% based on dollars and grew in terms of units sold.
In contrast, prestige skin care dollar sales declined 1% to $4.6 billion, although units sold were said to increase.
The decline in prestige skin care is primarily attributed to facial skincare sales declines in brick-and-mortar stores.
The prestige body segment continued to thrive, with body creams, cleansers, and hand soaps the most significant contributors to growth.
The prestige hair category saw a 6% increase to $2.3 billion and units sold were also up.
All prestige hair segments reported growth, ranging from a single digit increase for shampoos and conditioners to a double-digit lift in styling products.
Scalp care also remained strong in the first half of the year, up 19%. In contrast, the overall hair category had a softer performance in the mass channel, with dollar sales up 4% and units flat.
Fragrance was the fastest-growing category in the mass market, up 17% based on dollar sales, and driven by women’s fragrances. Prestige fragrance sales increased by 6% to $3.9 billion and grew on all metrics including units sold and average selling price.
The makeup sector within prestige retail posted $5.2 billion in first half sales, reflecting a modest growth of 1% while units sold remained flat.
In contrast, makeup sold in mass outlets declined in the low single-digits based on both dollars and units.
Lip products emerged as the top contributor in prestige makeup, despite a slowdown to 3% growth, and was the only growth area for cosmetics sales in the mass channel.
The lip segment is increasingly driven by hybrid products that offer both tint and skincare benefits.
Additionally, lip contouring remains a prominent trend for prestige sales, with lip liner being one of the fastest growing areas.
The prestige eye makeup segment showed improved performance, reversing last year's decline, thanks in large part to growth in mascara sales. Face makeup, the largest segment in prestige cosmetics, remained flat.
Circana global beauty industry advisor Larissa Jensen said the results are indicative of a consumer who is focused on efficacy and elevated value; only 14% of US beauty buyers believe that higher prices indicate a better-quality product.
“The mass and prestige markets are converging, with premium-priced brands in mass retail and value-priced prestige brands outperforming their counterparts,” she added.
“As the industry faces tariff uncertainties and shifting consumer sentiment, adaptability and strategic agility are essential for success in 2025.”
