Canada’s appetite for prestige beauty products continues to grow with sales up +8 per cent in the first half of the year, reaching $1.1B and on track to potentially hit $2.5B by year end, according to The NPD Group.
The Canadian market is one of the top 5 largest markets that The NPD Group tracks and also one of the fastest growing globally. The makeup category was up +2 per cent YTD June 2018, and while traditionally this had been the primary driver of growth for beauty, in the more recent years, consumer focus has shifted to skincare which posted a +15 per cent increase. Fragrance sales on the other hand have continued to steadily grow at a very healthy +6 per cent.
“As we move into the 2nd half of the year, it is looking bright for the prestige beauty industry in Canada,” says Amy Chung, Fashion Industry Analyst at The NPD Group. “There have been a few shakeups recently such as new partnerships and revamps that are sure to excite consumers and have them open their wallets.”
What’s Driving This Growth?
The trend towards a more natural look with healthy and glowy skin has been in the making for the last couple of years and is even evidenced in the content that beauty influencers have been creating. While makeup tutorials continue to be popular, there has also been an increase in videos showcasing skincare routines. This shift is driving demand for corrective and preventative products in skincare such as acne treatments, age specialists, and sunscreen all saw strong growth. Certain makeup products are also seeing big lifts from this trend towards a lighter makeup look including tinted moisturizer and false eyelashes.
Another shift noticeable in beauty is the movement towards products that provide more ease and convenience. Makeup and Skincare sets that provide complete regimes and looks have seen strong double digit growth in the last year while travel-friendly and mini size makeup products have seen sales almost double. While traditionally, the travel-friendly segment focused on single products such as lip color or mascara, we’ve seen an increase in travel-friendly makeup sets and eyeshadows in the last year.
Canada as a whole continues to be an attractive market for international retailers to expand. Retail Insider reported earlier this year that 40 per cent of the 50 new retailers entering the Canadian landscape in 2017 were focused on luxury. As most new retailers to Canada set up their first locations in bigger metropolis’s such as Vancouver and Canada, that could be a key contributor to the double digit growth seen in those regions. Combined, the BC and Ontario regions now account for 60 per cent of total beauty sales.