What Are Some Of The Key Trends Driving The Prestige Beauty Market?
The size of the U.S. prestige beauty market is estimated to have reached around $16 billion in 2015, reflecting a 7% year-on-year growth. Estee Lauder is the only big company that is solely focused on this segment and with this market consistently outperforming the mass beauty market, we can expect expect Estee Lauder’s growth to be further boosted by the rising demand in this segment. The growth of the prestige beauty market is driven by trends such as:
- Emerging markets’ greater propensity to buy prestige beauty along with greater purchasing powers in the hands of consumers in these markets. Over the next decade, emerging markets are expected to contribute to around one-fourth of the total prestige beauty retail sales.
- The demographic change in the U.S. with half of the population being over the age of 50 by 2017 will also help premium beauty growth as these aged consumers will have a greater disposable income.
- Along with the aged populations, millennials have also started taking an interest in premium beauty products especially with a greater awareness towards skincare regimens. The masstige products, or the prestige beauty products which are comparatively more affordable, seem to be a big hit among the millennials.
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