Beauty and Personal Care Quarterly Statement Q3 2020

Delivery

This report comes in PPT.

Key Findings

Premium and mass BPC witness downgrades in forecast growth

The Q3 update of August 2020 reveals a general downgrade in the beauty and personal care industry, as the global economy is forecast to enter its worst recession since the 1930s. Yet the massive changes brought about by the pandemic are also leading consumers to re-evaluate their life priorities, giving rise to new attitudes towards physical distance and health.

Skin health becomes paramount amidst pandemic anxiety

Despite the expectation of a marginal decline in sales in 2020, skin care remains the largest growth opportunity among all product categories over the next five years. The adoption of more health and prevention-orientated lifestyles, with skin health being a key component, is expected to gain further relevance as a response to COVID-19.

Further opportunities for BPC in China

The expected rebound of consumption in the Chinese economy in 2021, changes in animal testing regulation, continuing population growth and the further expansion of e-commerce provide a firm platform for the growth and development of beauty companies in the Chinese market.

E-commerce sales growing exponentially

Consumers’ pace of digital adoption and rate of digital literacy increased rapidly as countries implemented restrictions to control the spread of COVID-19. A significant proportion of converted e-shoppers is anticipated to remain in the long-term.