Colour Cosmetics in Algeria

PROSPECTS

Colour cosmetics is expected to record growth over the forecast period

Colour cosmetics is expected to continue to see a positive performance over the forecast period, thanks to the rising urban population and the higher number of women joining the workforce. Moreover, the increasing development of modern retailing is expected to fuel growth.

Volume growth in colour cosmetics is set to slow over the forecast period

Since the Algerian economy relies massively on oil and gas exports, the major drop in oil prices, which is driving inflation and the depreciation of the Algerian dinar, is expected to have a negative effect on colour cosmetics. Indeed, this is projected to drive significant unit price increases and hence slow down growth in volume sales over the forecast period.

Illicit trade of colour cosmetics is expected to rise over the forecast period

The growing restrictions on imports are predicted to stimulate growth in the informal market in colour cosmetics, especially given the absence of local production in this category in Algeria. In addition, rising import taxes and the ongoing decline of the exchange power of the local currency will drive a significant increase in the unit prices of colour cosmetics.

COMPETITIVE LANDSCAPE

Bourjois from Cosmekam Algérie remains the leading brand

Cosmekam Algérie remained the leading player in colour cosmetics in 2018, whilst L’Oréal Groupe was second. L’Oréal Groupe is responsible for brands such as Lancôme and L’Oréal Paris as NBO, as well as being the GBO for several other brands, such as Gemey/Maybelline and Yves Saint Laurent.

Natural Swedish Cosmetics (Oriflame) is still struggling

Natural Swedish Cosmetics, the Algerian subsidiary of Oriflame Cosmetics, which is strong in facial care, saw the sharpest decrease in value sales over the last few years; therefore, losing significant share. This can be attributed to the overall economic situation, as the strong decline in the oil price pushed the government to implement important restrictions on imports, which drove stock-outs for some imported brands, such as Oriflame.

Colour cosmetics continues to be dominated by international brands

International brands are very popular and well-established in Algeria, and thus dominate colour cosmetics. Indeed, brands such as Bourjois, Lancôme, Gemey/Maybelline, L’Oréal Paris, Oriflame, Forever Living and Yves Rocher rely on strong brand recognition and loyalty, and guarantee high quality, so international brands still account for the largest share of sales.

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