Beauty and Personal Care: Quarterly Statement Q4 2017

Positive growth momentum continues in beauty and personal care

The most significant upgrades continue to stem from Brazil and Japan, joined by a range of key Western European markets, most notably Spain and Germany, indicating more positive state of affairs in the long-stagnating region.

Almost clean sweep of positive category upgrades

Skin care contributed most to the Q4 upgrade compared to baseline forecasts at USD539 million, due to a strong positive impact from two main drivers, GDP and product pricing, in the above geographies.

Surging Western European economic performance fuels upgrades

Signalling the importance of the largest Western European markets, some 40% of the global upgrade stems from the combination of Spain, Germany, Italy and France, reflecting the region’s steady economic stabilisation.

L’Oréal shows confidence in Brazil with large R&I investment

The new centre is making L’Oréal’s best global innovations relevant to Brazilian and Latin American consumers through local developments and customisation of worldwide technologies, and also setting the pace for breakthrough innovations in key categories, such as sun care and hair care.

Japan premium skin care taps into ageing population and Chinese tourists

There is strong demand for value-added products offering benefits such as boosting radiance, evening skin tone and softening wrinkles. Many ageing consumers sought to maintain a youthful complexion by buying the best products they could afford.

Saudi Arabia’s premium BPC continues to suffer, mass gets a boost

While the economic headwinds are halting premium opportunities, the same forces are benefitting mass, most significantly due the lack of category maturity in mass. Unmet market potential in mass BPC is twice the size of premium in Saudi Arabia.

Rising competition for share in the still more dynamic premium space

Competition between L’Oréal and Estée Lauder has intensified for the global top position in premium beauty. Coty has beefed up its premium portfolio and has jumped to the top global position in premium fragrances.