Beauty and personal care posted a positive performance in volume terms in 2018, whilst current value growth was much higher due to rising unit prices. Favourable demographic trends were the main driver of growth in Algeria in 2018, along with rising urbanisation, increasing consumer awareness and lifestyle changes.
The country’s economic challenges, due to falling global oil prices, led to increasing inflation and the declining exchange power of the Algerian dinar. This significantly eroded consumers’ purchasing power and therefore limited their expenditure on beauty and personal care products, as average unit prices rose sharply in 2018.
In Algeria, international players such as Unilever, L’Oréal and Colgate-Palmolive lead value sales in beauty and personal care. The leading position of multinational companies can be attributed to their large product portfolios, powerful distribution networks, strong marketing budgets and the long-standing consumer awareness and trust that such companies enjoy.
Health and beauty specialist retailers continued to lead the distribution of beauty and personal care products in 2018, closely followed by traditional grocery retailers. Nevertheless, both these distribution channels saw declining value shares during the review period, due to the growth of other channels.
Over the forecast period, the ongoing unfavourable economic environment is likely to continue to hamper consumption, and therefore slow down volume growth in comparison with the review period. Nevertheless, it is expected that beauty and personal care will continue to develop and grow both in volume and current value terms.
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This industry report originates from Passport, our Beauty and Personal Care market research database.