In the middle of this month, several foreign media outlets reprinted the data report on the full-year 2024 US beauty and cosmetics market by the US market research company Circana. The data showed that this was the fourth consecutive year that the US beauty industry had achieved sales growth, and among them, the performance of high-end beauty brands was the most outstanding.

According to Circana's data, in 2024, the sales growth rate of high-end beauty products in the US exceeded that of mass beauty products again, with a year-on-year growth rate of 7%, reaching 33.9 billion US dollars (approximately 246.9 billion yuan). In contrast, the sales growth rate of mass beauty products in the US increased by only 3%.

Circana pointed out that it is worth noting that the overall growth rate of the US beauty industry in this comprehensive growth is still much lower than the vigorous momentum in previous years: In 2023, the sales growth rate of high-end beauty products in the US increased by 14%, while the sales of mass beauty products also increased by 6%; In 2022, the sales of high-end beauty products in the US increased by 15%. "Even compared with the first half of 2024, the sales of high-end beauty products also slightly decreased, and we expected a year-on-year growth rate of around 8% at that time," Circana said in the report.

01 The perfume market is booming, becoming the "second largest category" in the high-end beauty market

In 2024, perfume was the fastest-growing category in the US high-end beauty market, whether in terms of a 12% year-on-year increase in sales or double-digit growth in sales volume. "In 2024, perfume became the second-largest category in the US high-end beauty market," Circana pointed out. In the mass market, it was also the fastest-growing category in terms of sales volume.

In the US high-end beauty market, including department stores and beauty professional retailers, perfume currently accounts for 28% of the total sales of high-end beauty products, a considerable proportion. Specifically in terms of subcategories, sales of high-concentration perfumes, such as perfume and light perfume (with higher prices), increased by 43% and 14% respectively year-on-year. Luxury brands accounted for 12% of the total sales of high-end perfumes, and their growth rate was higher than that of the overall perfume category. At the other end of the price range, the sales of mid-to-low-priced fragrance products, such as body spray and body fragrance sprays, increased by 94% year-on-year, and the sales of hair care and fragrance products also increased by 32%.

02 The growth rate of skincare products is slow, and the body care sector is increasingly prominent

Compared with the booming perfume market, skincare products became the weakest growth category in the US beauty industry throughout 2024: According to Circana's report, in the high-end beauty market, skincare product sales increased by only 2% year-on-year, and sales growth was slightly faster; in the mass market, this category also had "smaller growth rates" in both indicators.

Circana stated: "Skincare has become the most compatible category in both the mass and high-end beauty markets, as mid-range brands that have explored multiple markets are driving the growth of these two markets." It also pointed out that in the high-end beauty market, subcategories such as lip care and facial cleansing products have become highlights, with outstanding performance. The performance of body care products has continued to outperform facial care products - including creams, lotions, cleansing agents, and hand sanitizers.

03 "Cosmeceutical integration" mixed makeup products are highly popular

Circana's data shows that in 2024, the sales of makeup products in the US market increased by 5%, maintaining the position of the largest category in the US high-end beauty market.

Among them, lip makeup was the best-performing makeup category in 2024, with a year-on-year increase of 19% in sales, mainly due to the popularity of "hybrid" products (such as lip oil and lip balm) with both skincare and makeup functions.

Circana pointed out that the characteristic of hybrid products is that "they can both apply makeup and have skincare functions". In the past year, the sales of high-end facial makeup products with or claiming moisturizing, whitening and skin-caring functions have exceeded those of skincare products with the same functions, highlighting the significance of the "hybrid" trend in the US cosmetics market.

04 Sales of high-end hair care products continue to grow

After achieving remarkable growth rates of 24% in 2023 and 22% in 2022, the high-end hair care category continued to be strong in 2024, with sales growing by 9%.

According to a comprehensive survey by Circana, hair care product sales are mainly dominated by mass brands, but although 70% of consumers say that price is important, only 16% of consumers say they only purchase mass brand hair care products.

"Although in the traditional impression of society and consumers, the hair care product market is mainly dominated by mass brands, according to the Circana Omnibus survey, although 70% of consumers say they are very concerned about low prices when purchasing hair care products, only 16% of consumers say they only purchase hair care products from mass brands," said Larissa Jensen, a global beauty industry consultant at Circana.

"Consumers in the high-end beauty market have proven their resilience time and again. For the second consecutive year, the sales of high-end beauty products have exceeded those of the mass market and all other general goods and fast-moving consumer goods industries tracked by Circana. In other words, when consumers are more cautious in their overall purchases, they not only spend more on high-end beauty products but also purchase in larger quantities," concluded Jensen. "High-end beauty products have become small luxuries that consumers can invest in to reward themselves. This mindset has been proven to be the key driving force for the overall strong performance of the beauty category. Multiple factors have contributed to the high-end beauty's performance exceeding expectations, and we expect these factors to continue to drive its growth in 2025."