Prestige beauty sales grew 4% to $3.5 billion in the fourth quarter of 2013, primarily driven by sales of makeup, which rose 8% to $1.2 billion, followed by prestige skin care which rose 6% to $1 billion. Fragrance sales decreased 2% to $1.3 billion.

Due in part to the growth in sales of premium-priced offerings, the average selling price of each of the three categories rose compared to the prior year, with makeup increasing by 2%, skin care by 1% and fragrance by 4%.

“Last year closed on a positive note for the prestige beauty industry as a whole. Makeup and skincare continued to shine the brightest, and while holiday has traditionally been a fragrance dominated sales period, the gap is closing between fragrance and makeup holiday sales volume. The premium segment is thriving in the US, and helped to minimize the decline in fragrance,” said Karen Grant, Vice President and Global Industry Analyst, The NPD Group, Inc.