Colour Cosmetics in the Netherlands

PRE-COVID-19 PERFORMANCE

General trend towards a natural look negatively impact colour cosmetics in general while proliferation of nail salons negatively impacts growth of nail products in 2019

A trend towards projecting a natural look and a fresh-faced aesthetic was continuing to have a negative effect on development of the colour cosmetics category overall in 2019. With the popularity of the natural look, sales have been flowing away from colour cosmetics towards skin care, for example.

Unlike many beauty and personal care categories, colour cosmetics is harder to move in supermarkets/hypermarkets, but sales through e-commerce boom in 2019

For many beauty and personal care categories, supermarkets/hypermarkets were high growth channels in 2019 as many major retailers have increased the space available for featuring non-food items. However, according to Information Resources Inc (IRI), colour cosmetics are difficult products for these retailers to move as they have a relatively high unit price and are also a sensitive product when it comes to theft.

L’Oréal Nederland maintains its lead in 2019, but its value sales and share are under pressure from offering frequent price promotions while constantly innovating

L'Oréal Nederland is the leading player in colour cosmetics, a position that is based mainly on the strength of the strong presence of its Maybelline and L'Oréal Paris brands in the mass segment. However, the company’s value sales and value share are under pressure due to the frequent use of price promotions and the almost constant innovation in its formulas.

2020 AND BEYOND

COVID-19 impact

Sales of colour cosmetics are now expected to decline by 3% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 1% decline forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within colour cosmetics

Temporary home seclusion, lockdowns of high-end department stores and vastly reduced social and business interactions significantly reduced the need for eye and facial make-up, lip products and, to a lesser degree, for nail care to the extent that value and volume growth will show percentage declines ranging from 3-4% in all categories in 2020. Demand for facial make-up, lip products, eye make-up and colour cosmetics sets/kits declined when people started staying home more than going out.

Recovery and opportunities

Colour cosmetics is set to see value growth slowly recover year on year between 2020 and 2024, ultimately registering similar if slightly slower growth compared to the review period CAGR. In contrast to the review period, mass colour cosmetics is expected to see slightly higher growth throughout the forecast period.

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