Deodorants in Latvia

2021 DEVELOPMENTS

Deodorants returns to seeing positive growth in 2021

Although deodorants recorded positive growth in 2021, sales did not quite return to pre-pandemic levels in this year, particularly in volume terms, following the decline seen in 2020 due to the pandemic. Lockdown and other stay-at-home measures reduced people’s presence in offices and educational institutions in 2020, while foodservice outlets were closed or subject to restrictions and leisure and entertainment venues were not allowed to open, thereby severely curtailing the time spent in the company of others, whether at work, in school or when socialising.

Deodorant sprays underperforming due to health and environmental concerns

While all categories of deodorants registered declines in retail volume and value terms in 2020 due to COVID-19 and the stay-at-home measures introduced to stem the tide of the virus, deodorant sprays, the biggest type in value terms and behind only roll-ons in volume terms, posted the fastest declines. Demand for deodorant sprays was already under pressure prior to COVID-19 due to health and environmental concerns.

Lidl enters the Latvian market, offering local consumers products under its Cien line

Lidl opened its first stores in Latvia in October 2021, which included the presence of deodorants under its own Cien private label line on their shelves. The share of Lidl’s private label products is expected to grow as the discounter chain expands during the forecast period, which could apply downward pressure on overall category prices in the coming years.

PROSPECTS AND OPPORTUNITIES

More sophisticated offer anticipated, although demographic trends are predicted to limit growth potential

The per capita consumption of deodorants is expected to fully recover during the forecast period, supported by the gradual normalisation of socialising, in-person work, studies and travel. However, the maturity of the category is set to result in a slow drop in overall demand as the forecast period progresses.

Health and sustainability will be key focus areas for deodorants

Health and sustainability are likely to remain high up the list of consumers’ priorities over the forecast period, with users remaining interested in innovative and natural ingredients as well as sustainable products. The growing interest in deodorants with a health and wellness positioning and problem-solving or added-value characteristics should ensure that strong odour control, longer-lasting effectiveness and gentle formulas for sensitive skin and non-staining formulas will be gaining popularity in health and beauty specialist retailers.

E-commerce likely to continue gaining share in deodorants

E-commerce is expected to continue recording growth in terms of value sales and share over the forecast period. Many consumers shifted to or increased their reliance on e-commerce for deodorants due to the constraints on store-based retailing and direct selling during the pandemic, especially in 2020.