Prestige beauty continued to thrive in 2012 as U.S. sales in department stores for the year grew 7 percent to $10.2 billion versus 2011, a time period that saw some of the most robust beauty growth in 10 years. Meanwhile, mass beauty sales saw a modest 3 percent gain to $21.2 billion for the year, and predictions point to prestige outpacing mass beauty sales in 2013.

The glowing results carried over into the beauty industry’s must-attend event Thursday evening, where global information and advisory company, The NPD Group, Inc., presented the U.S. and global beauty industry’s first look at 2012 year-end results for skin care, makeup, and fragrance at their annual Hot off the Press event. NPD partnered with nonprofit professional organization, Cosmetic Executive Women (CEW), to host the event, held this year at the Harmonie Club in New York.

The event attracted a Who’s Who in beauty, including Coty Prestige’s Marc Rey; Macy’s Muriel Gonzalez; Nordstrom’s Laurie Black; Revlon’s Julia Goldin; Shiseido’s Heidi Manheimer and Unilever’s Gina Boswell. And, this year, Hot Off the Press was expanded to include insights from two key beauty retailers: Margarita Arriagada, Senior Vice President, Merchandising, Sephora; and Joe Magnacca, President, Daily Living Products & Solutions, Walgreens.

The invite-only crowd also learned that all of the U.S. prestige beauty categories posted healthy growth in 2012 with skin care generating the largest growth at 10 percent, followed by makeup at 7 percent and fragrance at 5 percent, compared to 2011.

“Even though consumer confidence continues to waver, there is momentum at both ends of the price and product spectrum,” said Karen Grant, vice president and senior global industry analyst, The NPD Group. “In 2012, along with smaller categories in beauty, we are seeing investment spending on premium-priced makeup, skin care, fragrance, as well as premium-priced sets, which lead in growth once again. Even in Europe, where the economic environment is more challenging, the major premium-priced category, fragrance, was positive. Premium-priced products remain one of the brightest spots in beauty and will continue to carve out market share across all categories and geographies in the New Year.”

While not as strong, the U.S. mass beauty channel did grow, at nearly 3 percent, in 2012, versus 2011. Tracked by SymphonyIRI Group, Inc. sales included those generated at food, drug and mass retailers, excluding Walmart. Makeup sales posted the biggest increase at 5 percent, followed by skin care at 3 percent, while fragrance sales declined 4 percent in dollar sales, compared to 2011. NPD BeautyTrends National Chain Fragrance sales saw fragrance sales grow 7 percent.

“In the U.S., although we have seen some tempering in sales performance, compared to 2011, growth remains positive for both the prestige and mass channels. The trend of prestige beauty outpacing mass beauty continues to be evident since the recessionary period of 2009 and will likely continue into 2013,” Karen predicted.

NPD also revealed that the U.S. led in prestige beauty growth by country for 2012 versus 2011, followed by the United Kingdom (5 percent) and Mexico (5 percent). France saw a mild dip in prestige beauty sales with a 1 percent decline, but Italy, Spain and Argentina saw modest dips at 4 percent, 7 percent and 10 percent, respectively. Results for Mexico and Argentina were provided by Segmenta Projected Sell In/Sell Out for the 12 months ended September 2012.