Demand for colour cosmetics significantly declined in 2020 as a direct result of the home seclusion trend, as the government introduced a lockdown mid-March in an effort to control the spread of the virus. Lack of socialising occasions and employees working from home therefore had a profound impact on demand for colour cosmetics, particularly in the first half of the year, due to their perceived non-essential nature when social distancing, instead focusing their expenditure on groceries or more important personal hygiene products.
There was a notable shift in distribution channels in 2020, by both consumers and brands as many non-essential stores closed, with both health and beauty specialist retailers and e-commerce gaining share from direct selling. Direct selling is traditionally a significant distribution channel for the Philippines, and it had to adapt to the lockdown due to social distancing rules in place, with sales agents unable to visit customers.
L'Oréal Philippines Inc gained leadership of colour cosmetics from Avon Cosmetics Inc in 2020, while its mass-positioned brand Maybelline New York pushed Ever Bilena into second place within eye make-up. Maybelline New York’s managed to attract famous young local celebrities towards the end of the review period.
Colour cosmetics is predicted to experience a notable upturn in demand from 2021, resulting in volume sales fully recovering by 2022, while value sales (at constant 2020 prices) will take longer to return to pre-pandemic levels by 2024. These trends are likely to be driven by ongoing price promotions due to lingering price sensitivity and retailers wanting to move product of existing stock before new collections are launched.
The forecast period is likely to see greater expansion in terms of distribution with an increasing number of brands wanting to expand their reach, rather than relying on direct selling for instance, or department stores, two channels which suffered during the pandemic. Mass consumers for instance, are more likely to increasingly purchase colour cosmetics through modern grocery retailers, or smaller grocery retailers such as ALFA Mart, convenience stores such as 7-Eleven, Ministop, Family Mart, and Lawson which are located closer to consumers’ homes and therefore offer greater convenience whilst they do their normal shop.
E-commerce gained notable share within colour cosmetics in 2020 due to the closure of specialist stores, department stores and limited direct selling opportunities with the latter seeing the permanent closure of operations by some players in favour or moving online to reach their audience through the launch of their own websites. Further innovation in terms of digitalisation and “virtual try-ons” are expected to remain and will attract tech-savvy younger consumers who will be more confident in using this technology, especially if they have had a positive experience.
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Understand the latest market trends and future growth opportunities for the Colour Cosmetics industry in Philippines with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Colour Cosmetics industry in Philippines, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Colour Cosmetics research and analysis database.
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