Colour Cosmetics in North Macedonia

PRE-COVID-19 PERFORMANCE

Shrinking consumer base slows down overall growth while premium products benefit from improved economic conditions in 2019

North Macedonia’s continued negative demographic trends had significant impact on the growth of many product area in beauty and personal care, particularly colour cosmetics, which remained the second-largest product are in terms of current value share in 2019. Lower taxes, higher wages and rising disposable incomes supported some growth, but ongoing migration lead to an overall slowdown that could not be prevented by the continued efforts and innovation by major players and manufacturers.

Digitally engaged consumers shift towards e-commerce in 2019 as supermarkets and hypermarkets expand to the detriment of traditional retailers

Most distribution channels gained value share within colour cosmetics in 2019. The exceptions were direct selling, which saw some loss, and chemists/pharmacies and traditional grocery retailers, which remained stable.

Coty maintains lead in 2019, amid increasing competition due to players’ frequent innovation and product launches

Coty Inc held a strong lead in colour cosmetics in 2019, with over twice the value share of its closest competitor, Cosnova GmbH. Cosnova saw excellent growth, stealing value share from Coty, about failing to jeopardise the leading company’s position.

2020 AND BEYOND

COVID-19 impact

Sales of colour cosmetics are now expected to fall by 12% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 1% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within colour cosmetics

In 2020 the fastest-declining product areas within colour cosmetics are blusher/bronzer/highlighter, foundation/concealer and lip gloss. However, COVID-19 is having a negative impact throughout the category, and all product are expected to continue to see significant negative growth during 2010.

Recovery and opportunities

The impact of COVID-19 on colour cosmetics in North Macedonia is severe, and the category will not fully recover in terms of either constant value or current value by the end of the review period. The negative effects of the pandemic are compounded by ongoing migration and low birth rates, as well as certain trends that will have a small but nevertheless significant impact on colour cosmetics’ growth.

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