The makeup market has been marked by modest growth in recent years, with sales of approximately $6 billion at FDM outlets and department stores in 2004. A lack of new product introductions has put a damper on sales, and economic conditions play a role in influencing how much women are able to spend on cosmetics. Department store brands have fared better than FDM outlets, and experts from the National Association of Chain Drug Stores say drug stores have been hurt as consumers shift to specialty shops and dollar stores to make their cosmetics’ purchases.

Facial makeup represents the largest portion of makeup sales through FDM outlets. With the number of women aged 45 to 64 expected to grow by nearly 30% between 2000 and 2010, manufacturers are placing emphasis on foundations with anti-aging properties. Manufacturers also have seen strong growth with foundations that promise to blend exceptionally well to the skin, with more colors to suit America’s growing ethnic population.

Eye makeup accounts for the second-largest segment in the makeup market in FDM channels, and its growth has been outpacing that of other categories. While eyes are being played up, lips are being played down, which may account for the lagging sales of lip makeup. However, lip gloss sales have recorded strong growth.

Makeup sales are likely to continue their moderate growth in the coming years. The projected growth of the female population alone will be enough to propel sales. In addition, the market will be aided by the emphasis on products that conceal or reverse the signs of aging, along with a broadening of color palettes to boost future sales. The trend towards more precise skin-tone matching could likely increase makeup usage among blacks and Asian women, who report using makeup at a lower rate than whites and Hispanics.

Mintel’s report includes a thorough analysis of the makeup consumer. This includes an evaluation of top concerns and priorities when choosing products, a breakdown of preferences and behavior by demographic characteristics, and statistics of purchasing location and frequency. A five-year market forecast estimates the future of the market, with a statistical forecast of market performance until 2009 and an outline of demographic and product trends.

The retail makeup or color cosmetics market is defined as incorporating all color cosmetics for women. This represents three main categories:

• face makeup—foundation, face powder, and blushers/rouge

• eye makeup—eye shadows, eyeliners, eyebrow pencils, and mascara

• lip makeup—lipstick, lip glosses, lip pencils, pots and palettes

Cosmeceuticals are also discussed, which refers to cosmetics with crossover pharmaceutical ingredients, such as moisturizers or sunscreen.

Nail-care products and accessories are excluded, as are body-glitter products and duty-free sales.