The prestige beauty industry grew by $1 billion in 2016, with the 6 percent sales growth seeing the U.S industry now worth over $17 billion. The NPD Group stated in the report that the U.S makeup category has once again experienced the greatest sales growth (12 percent) and contributed 82 percent of the industry’s total gains followed by skincare (2 percent) and fragrance (1 percent).

“The beauty industry has gained $1 billion for three consecutive years, and while this is something to celebrate, industry players must not get too relaxed. This is no time for walking; it is still very much a run,” said Karen Grant, global beauty industry analyst, The NPD Group.

“A proliferation of trends has fuelled growth and innovation in many aspects of the industry; however, it has brought with it a restructuring in beauty. As consumers seek feel good experiences and strive for healthier lifestyles they are, at the same time, redefining the meaning of beauty in their lives.”

Makeup was the driving force behind the industry in 2016, with four out of every five dollars in the prestige beauty market stemming from makeup. The market drivers in skincare were products that prep the skin for makeup, with masks making up 24 percent, lip treatments 20 percent, facial cleansers 7 percent, and facial exfoliators 5 percent.

Fragrance sales increased 2 percent for the year, with diffusers, candles and home ancillaries gift sets leading the charge.

“How consumers are using and choosing their beauty products is different today,” says Grant. “More than ever, consumers are turning to beauty to look and feel their best. Across industries, services and experiences are on equal, if not higher, footing than products alone. These trends convey to us that there’s a shift in what makes consumers feel good, and how they are gifting to others,” said Grant.

“The top-performing brands today are social and community-driven. To be successful, brands and manufacturers need to look beyond the traditional retail channels and find more opportunities to adapt to the emerging trends. They must recognize that it is not only important how many consumers are aware of your brand, but how many convert to it. Those that master this technique will thrive.”

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