Consumers have increased spend on super premium anti-ageing beauty products despite restricting spend on entry and mid-market goods, figures released today reveal.
In the year to June 30th 2012, prestige products priced between £50 and £100 saw value sales growth of 28 per cent according to the latest research by the NPD Group, while products worth more than £200 reported nine per cent growth.
Meanwhile, beauty products priced under £30 witnessed a 30 per cent decline in sales values as those priced between £30 and £50 fell eight per cent over the period, emphasising the extreme price differences within the market.
June Jensen, Director for NPD Group Beauty UK, warned: “As products priced between £100 and £200 are declining -1.2 per cent in value sales, we believe that the consumer that was previously buying in this segment is now trading down to the lower price bracket.
“Premium skincare consumers clearly see products below £100 as both high quality and a better buy in the current challenging economic environment.
“Although -1.2 per cent may seem small, it is vital for premium brands to understand the causes of the drop in order to take the action that will ensure that they retain their valued – and valuable - customers.”
In spite of this disparity, the strength of the upper and super premium sector has caused year-on-year growth of six per cent across the whole anti-ageing category, and this success is thanks to the success of new launches and gift sets from leading brands including Lancome, Shiseido and Chanel.
While Shiseido experienced market growth of 48 per cent over the first half of the year, Chanel reported 32 per cent growth and the NPD group attributes this to the importance of ongoing innovation.
“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,” Jensen added.
“Product innovation, targeted and personalised gifting, limited edition products and beautiful packaging are all playing their parts in the growth of this sector.”