Key Takeaways

• Prestige makeup sales declined by 1% in Q1 2025, with stick formats gaining popularity.
• Innovative lip products are emerging, combining color with skin benefits.
• Convenience and multifunctionality are key trends driving consumer preferences in beauty products.

Decline in Prestige Makeup Sales

In the first quarter of 2025, the prestige beauty category saw a 1% drop in dollar sales, according to Circanaa. While the overall trend appears weak, specific segments, especially stick formats, performed notably well. Eye shadows and foundations in stick form surged, displaying double-digit growth rates, outperforming their traditional counterparts. However, lip product sales have remained flat, despite growth in specific types like lip oils, balms, and liners.

Growth of Stick Formats

Stick products are increasingly favored due to their portability and convenience. They simplify beauty routines by minimizing mess and eliminating the need for additional tools. Many of these items are multifunctional; for example, Milk Makeup offers a Lip + Cheek Cream Blush Stick that serves dual purposes. This trend echoes a broader consumer shift towards easy-to-use products.

Eye shadow stick products, such as Bobbi Brown’s Dual-Ended Long-Wear Waterproof Cream Eyeshadow Stick and Tarte’s Quick Stick Waterproof Shadow & Liner, are gaining traction with their long-lasting formulations and soothing ingredients. Similarly, foundation sticks that incorporate skin-friendly ingredients, such as Merit’s The Minimalist and LYS Beauty’s Triple Fix Blurring Stick, have captured consumer attention, addressing issues like dark spots and dryness.

Innovative Packaging Solutions

Industry leaders are recognizing the importance of unique packaging designs that combine aesthetics, functionality, and sustainability. ICONS America’s new click pens are particularly noteworthy, featuring refreshing applicator designs aimed at enhancing user experience. As consumer expectations evolve, brands are reframing their packaging strategies to align with desires for performance and visual appeal.

HCP Packaging is also addressing the need for sustainability in lip products. The Harmony Luxe Trimline offers a luxury feel while focusing on circular materials, and the Harmony PP Refill Slimstick presents an eco-friendly option designed for easy refills. These packaging innovations are crucial for brands navigating the competitive landscape.

The Lip Category’s Evolving Dynamics

While lip products previously dominated in 2024, they are facing challenges in 2025 despite showing resilience in hybrid formats. Tinted lip oils are increasingly popular, merging skincare with color. Products such as Charlotte Tilbury’s Matic Lip Oil Crystal Elixir exemplify this dual appeal, featuring hydrating and plumping ingredients.

Likewise, lip balms that incorporate color are thriving in the market. Brands like Polite Society and Live Tinted are successfully combining moisturizing properties with cosmetic benefits to attract consumers.

Emergence of Lip Liners

Lip liners are also experiencing renewed interest, with brands like Sacheu gaining popularity on social media platforms. The brand’s Stay-N lip liner, for example, has achieved substantial search volume and market presence, driven by rising interest in low-maintenance beauty solutions.

Key Marketing and Product Innovation Insights

To remain competitive, beauty brands are encouraged to adapt to the following trends:
1. Stick formats are on the rise due to their convenience and multifunctionality.
2. Emphasizing hybrid products that combine makeup with skincare benefits is essential to meet consumer demand.
3. Innovative packaging that reflects sustainability and functionality will significantly influence purchasing decisions.

Meeting the contemporary consumer’s desire for simplicity and effectiveness is paramount for brands aiming to thrive in the evolving beauty landscape. As convenience becomes more crucial, companies must position their offerings as skin care-makeup hybrids, appealing to the modern, busy lifestyle.

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