The Q3 update of 2020 reveals a general downgrade in the beauty and personal care industry, as the global economy is forecast to enter a recession. Consumers are re-evaluating their life priorities as a result of the changes brought about by the pandemic, which has affected in different ways the demand for beauty and personal products. China will continue to be a bright spot for the industry due to the country’s better response to the coronavirus pandemic.
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.
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.
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.
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.
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