Celebrity Beauty Brands Surpass $1 Billion in Sales, but Consumer Fatigue Looms
Sales of celebrity-founded beauty brands in the US skyrocketed by almost 58% in 2023, surpassing the $1 billion mark, according to trend forecaster NIQ.
In a booming industry where beauty brands are constantly vying for consumer attention, celebrity-founded beauty brands have emerged as major players. New findings from trend forecaster NIQ reveal that these brands collectively generated over $1 billion in sales in 2023, marking a significant increase of almost 58% compared to the previous year. This surge in sales outpaced the overall beauty category, which saw an 11% growth during the same period. However, as the market becomes increasingly saturated, consumer fatigue around celebrity brands may be starting to set in.
The Rise of Celebrity Beauty Brands:
NIQ tracked the sales of 43 celebrity-founded beauty brands in the US, including industry heavyweights like Rihanna’s Fenty Beauty, Kylie Jenner’s Kylie Cosmetics, and Selena Gomez’s Rare Beauty. These brands have captured the attention of millions of consumers, with almost 21 million US households purchasing celebrity beauty products, representing a 22% increase from the previous year.
The report highlights that the biggest buyers of celebrity beauty brands are from “large, young, diverse, higher income households.” These consumers not only spend more than the average consumer on beauty and personal care products but also seek out the allure of celebrity-endorsed brands.
Slowing Launches and Consumer Fatigue:
While the celebrity beauty market has experienced tremendous growth, NIQ’s findings reveal a slowdown in new launches in 2023. Only six new celebrity-fronted brands entered the market, compared to a peak of 19 in 2021. This decline suggests that the market may be reaching saturation, with an increasing number of celebrities already having ventured into the beauty industry.
Consumer fatigue around celebrity brands is becoming a concern, as evidenced by the struggles faced by some brands. Actor Jared Leto’s skincare brand, Twentynine Palms, reportedly faced closure just one year after its launch in 2022. Similarly, beauty influencer Jaclyn Hill recently announced the closure of her brand, Jaclyn Cosmetics. These setbacks highlight the importance of factors such as authenticity and inclusivity in winning over consumers.
The Road Ahead:
Despite the potential challenges, NIQ predicts that the celebrity beauty market is still poised for growth in 2024. Fresh launches, such as Beyoncé’s upcoming hair care line, are expected to generate excitement among consumers. The report emphasizes that brands will need to focus on factors like authenticity, inclusivity, and innovation to stand out in an increasingly crowded market.
Conclusion:
The rise of celebrity beauty brands has reshaped the beauty industry, with sales surpassing $1 billion in 2023. However, as the market becomes saturated, consumer fatigue poses a challenge for these brands. The success stories of celebrity beauty brands are accompanied by cautionary tales of closures and setbacks. To maintain relevance and capture consumer attention, brands must prioritize authenticity, inclusivity, and innovation. The future of the celebrity beauty market hinges on the ability of these brands to adapt and resonate with consumers in an ever-evolving landscape.