Deodorants in Algeria

PROSPECTS

Positive performance is expected for deodorants in Algeria

Deodorants is expected to show healthy growth over the forecast period, underpinned by the hot climate, increasing urbanisation and the continuous use of deodorants as substitutes for fragrances, especially given the predicted decline in consumer spending power. Deodorant sales should also see positive growth because of an increasing population and because more consumers will consider deodorants an essential part of acceptable personal hygiene.

Expected growth slowdown for deodorants over the forecast period

Value sales of deodorants are expected to rise over the forecast period at a CAGR that is slower than the CAGR recorded over the review period at constant 2017 prices. This is attributed to the increasing maturity of the category and to the increasing availability of mass brand ranges in more retail outlets, with consumers seeking more affordable prices.

Deodorant sticks sees fastest growth but sprays is expected to remain dominant

Deodorant sticks is expected to see the fastest value growth at constant 2017 prices over the forecast period as the category has not yet reached maturity. In addition, the product novelty and its higher unit price growth compared to that of sprays are expected to support the faster value growth.

COMPETITIVE LANDSCAPE

Unilever Algeria remains the category leader in Algeria

Unilever Algeria remained the leader in deodorants in 2017 due to entrenched consumer loyalty to its Axe, Rexona and Dove brands. In addition, Unilever was remarkably active in advertising campaigns and promotions during the year.

Imported deodorant brands are losing ground

Consumers in Algeria have been familiar with brands such as Narta and Mixa of L’Oréal Groupe or Sanex of Colgate-Palmolive for a long time and have had good experience with their deodorants. Nevertheless, these international players are losing share as their products, which are totally imported, saw frequent stock-outs due to growing restrictions on imports that began in 2016 and reached a total ban in May 2017 due to the government’s determination to address the large trade imbalance driven by the drop in oil prices.

Domestically produced brands are consolidating their value shares

Domestically manufactured brands such as Dove and Rexona from Unilever or the local brands such as Nanine are gaining significant ground in Algeria, benefitting from the ban on imports for beauty and personal care products. Indeed, the economic crisis in Algeria has created opportunities for local manufacturers to gain share as they are offering cheaper brands given the declining disposable income levels.

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