8 February 2024
Despite a decrease in brand launches, celebrity beauty brands have experienced significant sales growth, according to a recent report by NIQ.
In a market research report released by NIQ, it has been revealed that celebrity beauty brands have seen a remarkable increase in sales, growing by 57.8% from $691.5bn in 2022 to $1,091.1bn in 2023. This growth is particularly noteworthy considering the decline in celebrity brand launches, which have decreased from nineteen launches in 2021 to only six launches as of November 2023. CosmeticsDesign spoke with Anna Mayo, VP Beauty Vertical at NIQ, to gain insights into the trends and future trajectory of celebrity beauty brands.
Report Methodology and Consumer Profile
Mayo explained that the data used in the report’s analysis and determinations was gathered by monitoring the beauty market and pulling sales data from NIQ’s Omnishopper database. The report tracked the performance of various celebrity beauty brands, including Goop by Gwyneth Paltrow, JLO Beauty by Jennifer Lopez, and Fenty Skin by Rihanna. The report also revealed that the average celebrity beauty consumer spends $1,003.64 per year on beauty products, which is 1.25 times the average buyer. Furthermore, the report found that 20.7 million households purchased celebrity beauty products, representing a 21.9% increase from the previous year. The current average celebrity beauty buyer is typically a younger to middle-aged consumer between the ages of 18 and 44, coming from diverse households and ethnicities.
Key Report Takeaways
One of the key findings of the report is that celebrity beauty brands have had a significant impact on the industry, dominating brand innovation in recent years. The cosmetics and nail and fragrance categories have the highest sales concentration of celebrity beauty brands, with each holding a 2.9% market share. Brands like Ariana Grande Fragrance and Selena Gomez’s Rare Beauty have become mainstays in the US beauty industry. Mayo emphasized that the success of these brands stems not only from excellent product performance but also from an authentic connection with consumers. Compared to the overall beauty market’s annual growth rate of 11.1%, the 57.8% growth rate of celebrity brands is impressive. Mayo projected continued growth for celebrity brands as a whole but noted that not every brand will be a success story. In 2024, the successes will likely separate from the brands that have not quite hit the mark. Currently, 63% of the celebrity brands being tracked are experiencing growth, while 37% are declining.
Leveraging Report Findings in Future Collaborations
Mayo advised cosmetics and personal care manufacturers and suppliers looking to collaborate with celebrity beauty brands to understand that creating a successful brand goes beyond simply putting a founder’s name on a product. It is crucial for the brand to have a compelling backstory and a reason for being that resonates with its consumer base. Mayo emphasized that launching a celebrity beauty brand is similar to any other brand launch, with the added benefit of name recognition and a built-in fan base. However, authenticity is the key determining factor for success in the current market. Celebrities must work harder to prove why their brand is important and what it means to them, as consumer fatigue can impact the brand’s performance.
Conclusion: The rise of celebrity beauty brands has been a significant trend in the beauty industry, with sales steadily increasing despite a slowdown in brand launches. The report by NIQ highlights the importance of authenticity and a strong connection with consumers for the success of celebrity beauty brands. As the market continues to evolve, it will be interesting to see which brands are able to maintain their growth and separate themselves from the competition. Manufacturers and suppliers looking to collaborate with celebrity beauty brands should focus on creating compelling brands that resonate with consumers on a deeper level. The future of celebrity beauty brands holds both opportunities and challenges, and only time will tell which brands will continue to thrive in this highly competitive market.
