According to NPD, Canadian prestige beauty sales increased by 25% in 2022
In 2022, the premium cosmetics market in Canada had a fantastic year! According to market research firm The NPD Group, sales of high-end beauty products reached CAD 3.4 billion in 2022, increasing by 25% from the previous year. The fastest-growing beauty category of the year was makeup sales, although fragrance, hair, and skincare also experienced strong double-digit growth.
According to The NPD Group, the prestige beauty sector in Canada ended 2022 as one of the top-performing industries in the nation, mirroring U.S. sales trends. For the year, total sales increased by 25% from 2021 to reach 3.4 billion Canadian dollars.
According to NPD, the average cost of beauty products increased by 1% with overall market prices continuing to rise.
According to Alecsandra Hancas, an analyst for NPD in the Canadian beauty industry, “With a highly anticipated recovery, the Canadian beauty industry performed impressively last year.” “Consumers remained steadfast despite higher prices and general economic uncertainty. The demand from consumers for high-end cosmetics remained strong. These outcomes demonstrate the significance of beauty products and their crucial function in elevating consumers’ moods.
Makeup and in-store shopping are both returning strongly.
The makeup category made a strong and eagerly anticipated comeback with the lifting of restrictions and the full return to social life, with sales revenue increasing 38% year over year—the highest growth of any prestige beauty category. Sales of skincare products rose 17%, while fragrance sales rose by 24%. The hair category continued to expand rapidly, expanding by 27%.
Fragrance eau de parfums, along with hair products and cosmetics foundation, experienced the fastest rise. This year’s robust growth was continued as consumers invested in stronger fragrance concentrations. The three segments worked together to produce over a quarter of the growth in sales revenue for the entire beauty business in 2022. Canadians were skin-conscious when it came to their makeup purchases; radiant and natural foundation finishes were among the top share gainers in the makeup category.
At the channel level, internet sales increased year over year in 2022, but sales at brick and mortar stores were the big story. Store sales increased by 34% last year, accounting for the majority of the industry’s increases, demonstrating the resurgence of in-store shopping among Canadians.
According to Hancas, the Canadian beauty market will continue to rise in 2023 thanks to rising demand, innovative products, and experiential shopping. “Canadians are eager to visit stores again so they can interact with businesses and evaluate things by touching, feeling, and using them. They are also socialising more once more, so they should present themselves well.
(Photo: © Dan Dalton / iStock)