Fragrance sales rose 6% at prestige retailers and 15% at mass. Skin care led prestige growth. Ulta gained market share as Target ended its shop-in-shop partnership.
Prestige and mass beauty retail sales rose in the U.S. during the first half of the year, with fragrance and skin care driving the gains, according to Circana.
Fragrance was the strongest overall category. At prestige retailers, sales climbed 6% and average prices rose 5%, though unit sales were flat. Circana said the growth reflected shoppers trading up into higher-concentration formulas; eau de parfum and perfume both posted double-digit increases. Women's fragrance drove dollar and unit gains in luxury. In the mass market, fragrance was the fastest-growing beauty category, with sales up 15% and units up 7%.
Skin care was the fastest-growing prestige segment, with sales up 9% and units in double digits. Body care rose 16% on demand for cleansers, lotions and deodorants. Sun care was up 19%. Prestige hair care grew 11% on nearly 60% growth in hair serums. At mass, skin care "outperformed the mass beauty market overall," with every subcategory posting dollar and unit growth, Circana said. Mass hair care sales rose 7% while unit sales fell.
Makeup delivered more subdued results. Prestige sales rose 3% with softer unit volumes. Mass makeup sales were up 5% while units declined.
"Looking ahead, beauty industry growth will continue to be shaped by strong consumer engagement in key segments alongside the ongoing evolution of how consumers shop," said Larissa Jensen, Circana's beauty industry advisor. "As e-commerce and social platforms play a larger role in discovery and purchase, brands that create seamless paths from inspiration to transaction will be best positioned to capture future growth."
Retailers are adjusting their strategies as customers split spending across mass and prestige. Target ended its shop-in-shop partnership with Ulta Beauty this month after a yearlong wind-down. The retailer is continuing to court prestige beauty shoppers with its Beauty Studio concept. Ulta, meanwhile, gained prestige market share in the first quarter of 2026 and is opening a new experiential store in Times Square in late 2027.
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