Consistent with the U.S. gross sales developments, the status magnificence trade in Canada ended 2022 as one of many nation’s top-performing sectors, based on The NPD Group. Whole gross sales reached CAD 3.4 billion for the yr, rising 25%, in comparison with 2021.
With general market costs persevering with to rise, the typical value of magnificence merchandise rose by 1%, inclusive of promotions, based on NPD.
“With a extremely anticipated restoration, the Canadian magnificence trade carried out impressively final yr,” mentioned Alecsandra Hancas, Canadian magnificence trade analyst at NPD. “Even within the face of upper costs and general financial uncertainties, shoppers have been unfaltering. Client demand for status magnificence merchandise remained excessive. These outcomes are a testomony to the significance of magnificence merchandise and their essential position in making shoppers really feel good.”
Make-up and in-store buying make a powerful comeback
With the tip of restrictions and social life absolutely resuming, the make-up class made a powerful and extremely anticipated comeback, with gross sales income rising 38%, yr over yr, which is the very best development of any status magnificence class. Perfume gross sales elevated by 24%, and skincare was up 17%. The hair class continued to point out sturdy development of 27%.
The fastest-growing segments have been perfume eau de parfums – marking one more yr of sturdy consecutive development as shoppers invested in additional potent perfume concentrations – in addition to hair merchandise and make-up basis. Mixed, these three segments contributed near one-quarter of complete magnificence trade gross sales income positive factors in 2022. When it got here to their make-up purchases, Canadian’s have been skin-focused: luminous and pure basis finishes have been among the many high share gainers within the make-up class.
On the channel stage, year-over-year on-line gross sales continued to develop in 2022, however brick-and-mortar retailer gross sales was the massive story. Canadians’ return to in-store buying was clear, as retailer gross sales grew by 34% and accounted for a lot of the trade’s positive factors final yr.
“Trying forward, we anticipate one other yr of development for the Canadian magnificence market in 2023, led by elevated demand, product innovation, and experiential retail,” mentioned Hancas. “Canadians are excited to get again into shops to work together with manufacturers and contact, really feel, and take a look at merchandise. They’re additionally getting out extra once more, which implies placing their greatest face ahead.”