Demeter Group recently issued a financial trends report, Beauty Industry Outlook, packed with data on category growth, retail trends and sales and marketing opportunities. Overall, Demeter estimates that U.S. beauty sales will reach $59.8 billion in 2012, slightly lower than estimates forecasted by Euromonitor, due to recent economic tribulation, causing concern at the consumer level. Here’s what the San Francisco-based investment bank had to say about category growth for the remainder of 2012.

Skin care: Demeter is bullish on skin care, which comprises 19% of beauty sales. Skin care is estimated to grow 5.5% to $11.6 billion, in line with expected global category growth. Sales will be driven by consumers trading up to innovation in facial and anti-aging products.

Hair care: Hair care, which comprises 17% of beauty sales, is likely to remain flat at $10.2 billion, a culmination of basic shampoo and conditioner dollar declines countered with higher sales of hair oils, smoothers and problem-solution items.

Color cosmetics: Sales of color cosmetics, which is 16% of beauty, is likely to plateau, realizing a 1% growth rate, or $9.8 billion in retail sales. Beauty trends including “extreme eyes” and “pared-down lips” will influence segment sales accordingly.

Fragrance: Scents, which make up 9% of the category, are expected to slip in sales due to oversaturation. Expect the category to decline by a total of 0.5% from 2010 to 2015.

Bath and body: Sales of bath and body products, which make up 9% of beauty sales, are not expected to rebound through 2015 as the category remains heavily promotional. The majority of sales are in the mass sector, with private label sales accounting for nearly 25% of market share.

To view Demeter’s complete report, visit: Beauty Industry 2012 Outlook